SAP Business One it is an ERP-class programme aimed mainly at small and medium-sized enterprises. It can be used in all areas of business: from purchase orders, sales and warehouse management, to bookkeeping, to various types of reports and analyses as well as employee database management.
SAP B1 is also a very flexible tool that enables integration with a number of third-party programmes, which facilitates the exchange and analysis of data. In the case of enterprises belonging to a group, it is also possible to create proprietary mechanisms that facilitate reporting or daily work in a specific area.
The ability to create proprietary solutions in response to the individual needs of a particular business turned out to be extremely useful during one of the implementation projects in a Client’s company, carried out under the supervision of MDDP Outsourcing specialists. The Client needed to streamline the calculation of interest on loans and its correct posting.
We suggested to the abovementioned group, where there are about 30 loans in one entity, that an SAP B1 add-on be created for the purposes of monthly interest calculation. The tool was designed by an implementation company based on the description of requirements prepared by the accounting team.
Previously, the monthly calculation of interest without the use of a dedicated mechanism was complicated and time-consuming not only due to the number of loans, but also because all accrued interest was supposed to be divided according to two allocation keys.
The first key divides the interest into a dozen or so projects as related to the construction of tangible fixed assets, while the other divides the interest into several projects in terms of operating costs. The first step after a loan is taken out or received requires registration of the loan. It is necessary to provide the basic details from the contract that will allow the calculation of interest, i.e. the name of the lender/borrower, date of granting, value of financing, interest rate, etc. The bookkeeping accounts and a project allocation key, if any, are also to be provided in this step. The receipt of a loan on the account should be designated with the appropriate loan number so that the system will register from when and on which loan interest should be accrued. Such a calculation can be made as at any day of the month. If part of the interest or principal has been paid off in a given month, the repayment, after being appropriately designated, will be recognised in the loan module and taken into account in the next interest calculation.
The implemented solution has significantly shortened the monthly time spent on interest calculation and preparation of posting, as well as minimising the possibility of errors. Previously, the preparation of the calculation with division into projects took about one hour and a half; additional time was needed to enter the calculations into the system. Currently, the calculation itself and its representation in the accounting document take several minutes.
As an outsourcing company, we are focused on identifying areas where automation and minimisation of errors are possible. As a result, we can support Clients efficiently – minimising the costs of our services and thus the costs borne by our Clients.
Author: Joanna Kargulewicz, Accounting Area Junior Manager at MDDP Outsourcing.