Frontem

Functional Expertise

SAP Financials and SAP Logistics are the two major functional areas of expertise at Frontem. In our opinion, these are the foundation pillars of a solid SAP ERP Solution for any industry. The true business benefit driver is to leverage on the SAP Integration between these areas.

SAP Financials

SAP Logistics

We also have solid integration experience for key application areas like Integration

Financial Accounting

Expertise Area: General Ledger

Implemented simple and with consistency, the GL functionalities can prove that integration is truly the main asset of the SAP ERP package; in all our implementations the G/L was delivered as cornerstone of the Financial Accounting.

Special Solutions Delivered:

  • Multiple chart of accounts: alternative and group
  • Parallel valuation using parallel currencies in both New GL and previous versions
  • Handling inflation according to IAS 29
  • New GL implementation including enhancements with custom fields
  • Currency denomination and translations
  • Solution to cover IFRS adoption including Segment reporting, business consolidation/mergers
  • Automated allocations used for Segment and Profit Center reporting
  • Flexible, drill down reporting for Financial results presentation under different Accounting Principles: Country GAAP, IFRS, Group Reporting

Client Benefits:

  • Dramatically reduced the number of manual journal entries, by using SAP standard automatic posting engine from sub-systems (MM, HR, PUR, AA, FI-TV, Tax), thus ensuring consistency and accuracy of reported financial results
  • 100% GL reconciliation with sub-ledgers (AP,AR,AA) and Controlling (CO)
  • Faster closing periods and easier reconciliation

Expertise Area: Accounts Payables and Receivables

Special Solutions Delivered:

Client Benefits:

Expertise Area: Asset Accounting

Traditionally residing in the SAP Financials area, Asset Accounting has grown to be the foundation of a highly integrated functionality for companies with asset-intense business models. The integration into the SAP Service and Asset Management now covers an end-to-end life-cycle model: from investment planning, procurement, maintenace to retirement and disposal.

Special Solutions Delivered:

  • Integrated approach for all assets relevant transactions originated within: purchasing, material management, accounts payable, receivable and general ledger
  • Subsequent assets capitalization triggered by maintenance activities or overheads accumulation
  • Parallel valuations based on Canadian / US GAAP and IFRS standards, including changeover processes for companies in Canada or Europe
  • Simulation and calculation for: depreciation, interest or replacement values based on various criteria, including inflation impact
  • Reporting design and implementation for companies with large asset database
  • Financial Planning and Budgeting processes and integration with Investment Management

Client Benefits:

  • Speed up the implementation process, by leveraging our experience in implementing SAP Asset Accounting and integrating it with Supply Chain, Plant Maintenance and Investment Management functionalities
  • Leverage our expertise and experience in parallel valuation and IFRS migrations, when such topic becomes a “sine qua non” condition

Expertise Area: Taxes in SAP

Handled with precision, as they should be, all the way through: from calculation and postings to reporting.

Special Solutions Delivered:

  • US Sales and Use taxes in SAP for more than 56 000 jurisdictions based on CCH data feeds
  • 100% automated US Sales and Use Tax solution with SAP Sales, Purchasing and AP and Vertex products
  • Tax calculation at jurisdictions, regional or national level
  • Country specific regulations: European VAT, Sales and Used Tax, Withholding; SAP native determined or integrated with external applications

Client Benefits:

  • Robust solution, smooth integrated, fair priced and exactly tailored for real needs. If your business is supported by SAP you taxes transactions are as well
  • Increased accuracy and reduced tax exposure

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Management Accounting

Expertise Area: Product Costing

Designed and implemented in combination with the Production / Project Planning and Execution functionalities, Product Costing enables automation and ensures consistency for both management accounting functions as well as for production oriented managers.

Special Solutions Delivered:

  • Recipe-based product costing for process industries with process orders, including active ingredient valuation and joint products costing (co-products, by-products, phantom materials)
  • Discrete manufacturing costing with production orders, including MTO, MTS, sub-contracting and co-packing
  • Repetitive manufacturing product costing
  • Cross-plant and cross-company code models
  • Work-in-Process calculation, Actual Costing / Material Ledger and variance analysis

Client Benefits:

  • Full integration and automation for generating product cost estimates and standard prices, based on recipes, BOMs and routing used in Production planning and execution
  • Cost optimization opportunities using complex variance analysis tools to detect the root-cause of production variances
  • Accelerated product development cycles using Reference and Simulation Costing

Expertise Area: Profitability Analysis

Designed and implemented in sync with the Sales and Distribution functionality, COPA is one of the most powerful analytical and reporting tool native in the SAP ERP ECC package.

Special Solutions Delivered:

  • Costing-based and account-based COPA models for Wholesale, Distribution, Consumer Packaged Goods and Manufacturing organizations
  • Complex P&L Reporting packages with powerful drill-down capabilities and flexible characteristic selection, including: Customer, Product Hierarchies , Regions, etc.
  • Excel-enabled Sales & Revenue Planning with upstream and downstream integrated planning functionality

Client Benefits:

  • Enables instant access to Sales and Margin reporting
  • “One version of the truth between Sales and Finance” tool, ensured by tight integration with Sales and Billing as well as Overhead Management and Product Costing
  • No additional software license costs, as COPA functionality is native in the SAP ERP package

Expertise Area: Advanced Overhead Management Controlling

This specific area in Controlling has important design integration implications across the SAP ERP platform, including Production, Project Systems, Plant maintenance, Customer service, as it defines and controls how resources are costed on these objects.

Special Solutions Delivered:

  • Direct-cost absorption costing models, using activity types for labor, machine and other direct outputs of Cost Centers
  • Automatic calculation of actual activity prices, cost splitting techniques and re-valuation of actual prices on work orders / projects
  • Full-absorption costing models for overhead calculation using costing sheets to allocate production or project overheads to work order level
  • Automatic periodic cost allocations between SAP cost objects
  • Fixed / Variable Cost splitting and reporting
  • Cost centers variance analysis and root-cause enablement techniques to determine the source of over-under cost allocations

Client Benefits:

  • Empower cost center managers to better manage the use of labour and material resources in their area of responsibility and track plan / budget and actual values.
  • Identify, understand and correct causes of variances that can influence the cost of the product or service

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Financial Supply Chain Management

Expertise Area: Collections and Disputes Management

As a relatively new application added to the SAP ERP package, FSCM proves to be a highly flexible, modular solution for companies dealing with high volume of receivables.

Special Solutions Delivered:

  • Credit and Collection shared services center designed to support multiple companies in a group, dealing with high volume of receivables from retail customers and corporate accounts across US and Canada
  • Collection strategies and collection groups defined based on customer segmentation and custom logic of assigning customers to collections specialists
  • SAP Business Partner synchronization for AR Customer Master Records
  • Integrated Dispute Management, for handling Disputed cases

Client Benefits:

  • Increased visibility of AR items for customer centric group of companies
  • Flexible, proactive collection strategies enable better collection and can reduce the overall DSO
  • Traceability of customer contacts, promises to pay and disputes can mitigate risks and improve relationships with the customers
  • Optimized processes and automation for high volume of open items

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Project Systems Financials

Expertise Area:Project Accounting

As one of the most integrated and complex SAP ERP functionality, Project Accounting goes beyond defining project structures and tasks that collect costs and revenues. The type of business the project can handle and the project durations, being either a customer project or a capital investment one, has important implications on how the accounting treatment of project results must be reported and booked.

Special Solutions Delivered:

  • Fully integrated Project Costing models, with multilevel work breakdown structures and various work order types: network activities, PM orders, internal orders, production and CS orders
  • Complex multi-level project and order settlement scenarios, including revenue deferral settlement, WIP calculation and settlement as well as capitalization to AuC
  • Flexible Results Analysis-based revenue recognition methods, including cost-based PoC and Completed Contract methods
  • Resource Related Billing integrated with Results Analysis for Time and Material projects
  • SD-based Revenue recognition for Time-related or Service-Delivery related events
  • Inter-company billing scenarios

Client Benefits:

  • Achieved a high degree of integration between reported project results and project execution activities, thus reducing the duration of the reconciliation process at month-ends
  • Enabled Manufacturing, Service & Maintenance collaboration as well as full Asset Management integration

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Travel Management

Expertise Area: Travel Planning and Expense Management

Special Solutions Delivered:

  • End-to-End integrated process solutions: from travel request to employee reimbursement
  • Integration with Corporate Credit Card clearing for daily feeds (AMEX) to pre-populate travel expense report
  • Remittance and Credit Card Vendor reconciliation for IBCP models
  • Handling cash / bank deposit advances and linking these to travel expense reports
  • Travel policy enforcement and compliance
  • Bar coded forms for easy optical archiving of expense receipts
  • Automatic calculations of Meals PerDiems based on US and Canadian rates
  • Flexible Approval Workflow for travel requests and expense reports
  • ESS / MSS integration of travel expense entry and approval and support for Mobile / Offline entry

Client Benefits:

  • Increased spend visibility for Travel Expenses: Airline, Hotels, Car Rental companies and be leveraged to negotiate better commercial terms
  • Automation and Employee self services significantly reduces the overheads associated to processing employee expense reports manually

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Sales and Distribution

Expertise Area:Integrated SD solutions

Special Solutions Delivered:

  • Complete Order to cash scenarios for both goods and services sales
  • Plants Abroad solutions for FTZ-free trade zones with inventory held in bond warehouses abroad, plus integrated taxation
  • Mobile sales using Windows mobile platform

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Materials and Inventory Management

Expertise Area: Materials Valuation

This is a critical knowledge area that can make or break a successful SAP ERP implementation, as it supports the Logistics processes while having deep implications in SAP Financials.

Special Solutions Delivered:

  • Materials master design and implementation to support both the SCM and Operational needs, as well as smooth Financials integration
  • Full MM Account determination setup for material movements
  • Material Split Valuation, including active ingredient-based and batch-valuation
  • LIFO, FIFO, Lowest Value Balance Sheet valuation
  • Batch and Handling Unit Management

Client Benefits:

  • Real time inventory visibility to support both logistics and operational excelence intitiatives, as well as accurate inventory valuation and postings.
  • Support for multiple valuation approaches, based on diferent Accounting Standards.

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Logistics Execution

Expertise Area: Transportation

Part of the overall Logistics Execution solution from SAP ERP, transportation provides flexible, integrated process solutions for both inbound and outbound shipments in the business logistics chain.

Special Solutions Delivered:

  • Transportation functionality using SAP standard approach to support FCL-full container load, LCL-loose container load, urgent air shipments
  • Multiple-leg transportation for consumer goods from Asia to North America and Europe
  • Costing in Shipping: cost tracking and settlement from purchasing to sales and billing documents
  • Handling units for container shipping planning of deliveries
  • Integration with logistic supplier's external system (3PL-third party logistic) using EDI

Client Benefits:

  • Full shipment visibility (inbound and outbound) on the entire supply chain
  • Full costing visibility and absorbtion for the shipment costs

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Production Planning and Execution

Expertise Area:Integrated Production planning and execution with Controlling

While the undelying production and operational processes are industry-dependent, the PP-PI functionalities in SAP can model virtually any production planning and execution business process and integrate this with Product Costing and Advanced Overhead Cost Controlling

Special Solutions Delivered:

  • SOP / Demand-based production planning models, including Capacity Planning and MRP
  • Work Centers design, including integration with cost centers, activity types and formulas that support both capacity planning and costing
  • Bills of Materials, Routings and Master Recipes design
  • Design for various order types, depending on the industry: Recipe-based process orders and production campaigns for process industries, MTO and MTS production orders / repepetitive manufacturing with product cost collectors
  • Integration with QM functionalities, including sampling, rework orders, controlled scrapping

Client Benefits:

  • Fully integrated processes, from Sales and Operations planning, production execution, quality assurance with tight coupled integration with Financials and Controlling
  • Cost reduction opportunities, induced by production process optimization, product costing visibility and complex variance analysis tools offered in SAP.

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Customer Service

Expertise Area: MRO Processes

Special Solutions Delivered:

  • MRO - Maintenance Repair & Overhaul using standard SAP approach
  • Subcontracted services for third party repair
  • Rotable materials (accountable spare parts) support in CS
  • Repairs structured hierarchically using Project System (programs)

Client Benefits:

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Integration

Special Solutions Delivered:

  • CATS and HR Payroll Integration with Financials and Controlling
  • Cross-applications SAP Business Partner and Master Data Synchronizations
  • Material batches with classification and searching strategy for food and chemical products

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