Affordable, powerful, easy-to-use, cloud-based solution.

FINANCIAL CONSOLIDATION AND REPORTING

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Automating Financial ConsolidationThe role of CFO and finance at leading companies is evolving. In addition to overseeing the company’s financial health, today’s CFOs are also expected to turn accounting data into meaningful metrics, and be strategists who enhance business performance and create value for the company. To accomplish this, they must find ways to spend less time on day-to-day accounting, and make room for higher value-added activities.

Automating financial consolidation helps speed a company’s financial close and reporting cycle, and improve accuracy. A faster close helps CFOs and management know as soon as possible how business performance is tracking, and maximizes the time available to analyze performance against expectations, make adjustments, and re-forecast as necessary.

Obstacles to SuccessMost organizations struggle with financial consolidations, especially when faced with the complexities of multiple business entities, different fiscal year ends, disparate ERP systems, multiple charts of accounts, foreign subsidiaries, partial ownership, multiple currencies, and various financial reporting requirements. These complexities make closing the books a challenging and frustrating process, especially for companies using spreadsheets, homegrown solutions, or ERP systems for consolidations.

Finance professionals typically rely on solutions involving disconnected spreadsheets which must be coordinated, or even re-keying of data from one system to another. This is time-consuming, prone to error, has poor data integrity, is difficult to maintain, and does not scale to the needs of large or complex businesses.

Traditional ERP systems usually include basic consolidation functionality. But these solutions fall short because of their inability to handle consolidation of multiple entities with differing general ledgers and charts of accounts. Their cost can be prohibitive, and because they are complex and difficult to use, they require skilled IT staff to maintain.

A Better Way: Cloud-Based Financial Consolidation and ReportingThere is a better way: Adaptive Consolidation provides companies and nonprofits of all sizes with a solution rich in functionality and easy to use, with intuitive definition of rules that are automatically applied to the consolidation process each period.

Adaptive Consolidation, the financial consolidation application within the Adaptive suite of performance management solutions, has been built on the Adaptive market-leading CPM infrastructure, with the easy-to-use Adaptive interface and proven financial modeling engine. Like all applications in the suite, Adaptive Consolidation is an affordable, powerful, easy-to-use, rapidly deployable cloud-based solution which can be used independently to drive improved business insights and better business decisions.

When it is integrated with all the applications within the Adaptive Suite, it supports an efficient, complete closed-loop business analytics process that empowers finance and management teams to automate budgeting, forecasting, reporting, consolidations, and data visualization.

Adaptive Consolidation is a single, highly scalable solution that helps companies close their books accurately, quickly, and painlessly, because they can:

· Streamline the consolidation process and reduce manual effort and eliminate errors, regardless of the complexities involved.

· Maximize distribution of financial results by enabling self-service, web-based management and statutory reporting.

· Comply with GAAP and IFRS reporting standards when producing consolidated financial statements.

Integrated Business Analytics.

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Benefits:

· Achieve faster and more accurate and transparent close and report cycles

· Reduce errors and improve accuracy in consolidation and reporting

· Improve visibility, audit, and control during financial consolidations

· Provide clear and accurate view of financial results

· Accelerate reporting cycles to internal and external stakeholders

· Comply with accounting standards and regulation

Features:

Intuitive and Simple Rule Definition. Easily define flexible rules for intercompany eliminations and allocations. Effortlessly manage ownership percentages, even in complex organization structures with multiple instances. Readily handle multiple currencies with flexible rate types and automatic cumulative translation adjustment.

Automatic Rule Execution. Count on all rules being applied automatically and accurately to simplify even the most complex consolidation requirements – including eliminations, foreign currency translations, minority interests, etc. – and speed the consolidation process and month-end close.

Always-Live Data. Continuously view consolidated, live data. Eliminate the need to run batch jobs or wait for consolidation processes to complete. At any time, view intercompany eliminations, allocations, minority interest calculations, etc., to easily determine what is complete and incomplete.

Always-Live Drill-Down. Explore current values at any point in time, with the ability to drill into details of intercompany eliminations, allocation formula and values, details of minority interest calculations, and breakdown of consolidated figures.

Separate Application from General Ledger/ERP. Improve efficiency by managing the consolidation process where it does not interfere with ongoing General Ledger/ERP activity. Reconcile intercompany balances frequently, rather than waiting until the period end. Make late/topside adjustments in Adaptive Consolidation, rather than re-opening prior fiscal periods to make general ledger corrections.

Consolidated Book of Record. Import and consolidate data from any source. Gather data used for financial reporting not traditionally managed in the general ledger, such as headcount, and plan and forecast data. Upon consolidation, aggregate data across all hierarchies in the application.

Organizations using Adaptive Consolidation find that the consolidation and close process can be completed within a week or even days after period close. Faster closing improves the overall efficiency and effectiveness of the finance department, and helps management know as soon as possible how business performance is tracking against expectations. Faster closing also enables management take the time they need to reflect and analyze at each period end, before issuing reports.

FINANCIAL CONSOLIDATION & REPORTING

Example of Report Output.Integrated Business Analytics.

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Total Actuals

SalesProduction

AdjustmentsExternalSystems

GeneralLedger HRT & E

Benefits

· Identify imported data by source

· Separate imported actual data from adjustments, eliminations, and allocations

· View and report on rolled up actual data from all sources

· Easily determine the source of a particular number, e.g., it came from a direct import from the general ledger, from a manual adjustment, from an allocation rule, etc.

· Control what users can see and do with actual data

· Control what data can be modified after it has been imported or entered

Actual data in Adaptive Consolidation can be partitioned by source for flexible categorization, security, and identification. Partitions can be created in a hierarchy, up through which data automatically aggregates.

PARTITIONING OF ACTUAL DATA

Features

Partitioning of Actual Data by Source. Create separate actual data partitions for each source system. For example, create separate partitions for data imported from the GL, the Travel & Entertainment tracking system, and the HR database. Or use a single actual partition to combine all imported data.

Separate Partitions for Eliminations and Adjustments. Create separate partitions to hold elimination data and manual adjustments, or choose to use the same partition(s) for imported data and all adjustments.

Automatic Rollup of Actual Partitions. Create a hierarchical tree of multiple actual partitions, and automatically roll up data according to the tree structure.

User Security. Control who can import data into an actual partition, and who can see and/or edit data within an actual partition, with extensive access types and fine granularity. Make imported actual data read-only for all users, but still importable from an external source. Assign control over a specific actual partition to certain users, e.g., one user has the ability to import actual data from the GL, but another user is the only one with the ability to enter manual adjustments.

Locked Time Periods. Ensure the integrity of completed financial data by locking prior periods, by partition, to prevent unwanted changes either from importing or from editing.

Use Case Example of Partitioning of Actual Data.

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Benefits:

· Easily define elimination rules with a user-friendly interface

· Improve data accuracy with eliminations that are always in balance

· Validate checks and balances by seeing all elimination components in one place

· Confirm audit trail with ability to drill down into eliminations and see the elimination rule and values

· Enhance flexibility with date effective rules

· Monitor and manage eliminations throughout the consolidation process, at any time, without having to wait for close to be complete

Features:

Elimination Rule Manager. Easily define elimination rules, including which accounts eliminate against what other accounts. Make definition of elimination pairs quick and intuitive.

Granular Definition of Elimination Rules. Use combinations of accounts, account attributes, and dimensions to define what is to be eliminated. For example, create a rule to capture all intercompany revenue pertaining to a certain product line, from a certain entity.

Balanced Elimination Entries. Count on elimination entries always being in balance. Specify variance accounts which ensure that elimination entries are balanced, even if the accounts that are being eliminated are not.

Date-Driven Effectivity. Define start and end dates for elimination rules. For example, create rules that start and stop according to changing regulations and reporting requirements.

Eliminations Matching Viewer. Clearly view every aspect of eliminations, including all debits and credits for each balanced entry. See variance entries highlighted, and which rule was applied to calculate the elimination.

Always-Live Data. At any point during consolidation processing, view intercompany eliminations and identify any imbalances in the balances being eliminated, without requiring any batch jobs to be run.

Cell Explorer. Use drill-down tool to explore all aspects of any value, including the original entry and the eliminated entry, and the elimination rule employed.

Adaptive Consolidation makes eliminating intercompany transactions easy, with a simple one-page Elimination Rule Manager that enables any kind of intercompany eliminations required by your entity structure. The Elimination Rule Manager ensures that eliminations are always in balance, and provides visual cues when a rule or account balance needs attention.

INTERCOMPANY ELIMINATIONS

Example of Intercompany Eliminations Viewer.

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Features:

Consolidation by Ownership Percentage. Using the Consolidation Percentage Manager, enter the consolidation percentages to calculate how much of an owned entity to consolidate with the parent. When data is rolled up from a child to its parent, all balances in all accounts of the child are multiplied by this percentage. For example, if the level has a consolidation percentage of 5, then every account is multiplied by .05 as it rolls up to the parent.

Time-Varying Percentage of Ownership. For each subsidiary in the organization, support statutory requirements to report ownership changes when they happen. E.g., Company A owns 55% of Company B, but this will change to 60% next period.

Complex Ownership. Utilize ownership percentages in complex organization structures with multiple instances. E.g., consolidate entities linked to child instances. Consolidate partially-owned entities in multiple levels of the organization. Consolidate data when a parent company has a minority interest in another company, but the other company’s data is not available.

Cell Explorer. Use drill-down tool to explore all aspects of any value, including the original, pre-consolidated value in local currency, the consolidation percentage, and the consolidated value in the parent entity currency.

Benefits:

· Easily define consolidation percentages with a user-friendly interface

· Improve data accuracy with automatic controlling and non-controlling interest calculations across complex multi-instance, multi-entity organizations

· Support IFRS and GAAP requirements to report changes in ownership as they occur

· Augment checks and balances by seeing all elimination components in one place

· Improve audit trail with ability to drill down into consolidated values and see the pre- and post-consolidated values and the percentage driver

Adaptive Consolidation automatically handles the calculations necessary to consolidate controlling and non-controlling interests in multiple organizations. This includes calculations required for entities which have direct and indirect ownership (partial or total) of one or more business units.

MINORITY INTEREST

Example of Minority Interest Percentage Manager.

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Benefits:

· Replace multiple, complex formulas with easy to create and understand allocation rules

· Improve data accuracy with balanced allocations and automatic avoidance of circular references

· Streamline finance tasks with the ability to add, edit, review, prioritize, and delete allocation rules in a single user interface

· Adapt to changing rules, regulations, and company policy using date-effective allocation rules

· Enhance reporting flexibility with ability to include allocations or not

· Improve audit trail with ability to drill down into allocations rules

ALLOCATIONS Adaptive Consolidation includes an Allocation Manager to streamline the process of reassigning values from one part of an organization to others. The Allocation Manager has a user-friendly interface designed to facilitate the creation of balanced allocations based on source departments and accounts, target departments and accounts, and an allocation method (e.g., Square Feet, Number of Employees, Percent Ownership, etc.) This provides a way for businesses to easily distribute shared costs to consuming departments, or to allocate P&L items to product lines or brands.

Features:

Allocation Rule Manager. Design allocations with easy-to-understand user interface. Define sources and targets of allocations, allocation weight or methodology (such as headcount or square footage), and allocation-out and allocation-in accounts. Automatically create balanced allocations.

Granular Definition of Allocation Rules. Use combinations of accounts, account attributes, dimensions, and versions to define what is to be allocated. For example, create a rule to capture all shared expenses pertaining to a certain product line, from a certain entity.

Allocation Rules List. Prioritize rules in the order in which they should be evaluated. This is important if, for example, a rule depends on the prior allocation of cost. E.g., IT costs are allocated to all departments including HR, then HR is allocated to all departments including Facilities, then Facilities is allocated to all remaining departments. Automatically avoid circular references with built-in rule sequencing logic.

Separate Allocations into Actual Partitions. Optionally separate actuals data from allocation entries, in order to view and report on actual data with or without allocations.

Time-Varying Rules. Vary allocation rules over time with start and end dates for each rule.

User Security. Control users’ ability to access allocations rules.

Cell Explorer. Use the drill-down tool to explore all aspects of any value, including the allocation rule employed.

Example of Allocation Rule Manager.

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MULTIPLE CURRENCIES

Benefits

· Reduce the inherent complexity of multinational consolidations with powerful and flexible multi-currency capabilities

· Comply with regulatory requirements to use the exchange rates in effect at the time specific transactions are recorded

· Improve productivity whether you manage one subsidiary in another country or a complex international organization

· Save time, improve accuracy, and remove complicated manual calculations using a CTA feature as simple as a mouse-click

· Increase flexibility with user-defined exchange rates

· Enhance reporting flexibility with the ability to report any data in any currency

Adaptive Consolidation easily handles the complexities of using multiple currencies in planning, integrating external system data, and reporting, with automatic currency conversions. This includes the use of multiple exchange rate types, including historical exchange rates, and automatic cumulative translation adjustments (CTA).

Example of Multiple Currency Manager.

Features

Automatic Currency Exchange. Assign multiple currencies to entities within the organization structure. Automatically convert financial data from the local currency of child entities to the currency of their parents, and ultimately to the currency of the total organization.

Multiple Exchange Rates Types for Each Currency. In addition to end of month (or spot) and average exchange rates, create unlimited new exchange rate types for each currency, such as historical (or fixed). Historical exchange rates, for example, can be used to hold an asset’s value at a particular exchange rate throughout its life, regardless of ongoing currency fluctuations.

Cumulative Translation Adjustment. Automatically ensure that a financial statement remains in balance when some of its component accounts experience changes due purely to currency conversions.

Option to Multiply or Divide During Conversion. Specify whether exchange rates convert between currencies using a divide or multiply function.

Choice of Exchange Rates in Reports. Choose any active currency to report in, and optionally enter the exact exchange rate between the designated reporting currency and other active currencies.

Financial and Non-Financial Accounts. Specify whether accounts are financial in nature; currency exchange are applied only to financial data, not to non-financial data such as headcount, units, and percentage metrics.

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Benefits

· Drill-down and through any cell to explore all aspects contributing to its value

· Monitor status of intercompany eliminations

· Manage minority interest percentages in one place

· Use audit trail reports to find out who changed what, when, plus before and after values

· Export lists of user permissions to show who has access to what for SOX and audit compliance

VISIBILITY & AUDITABILITY Adaptive Consolidation has several mechanisms to provide visibility and auditability of the financial consolidation and process. In addition, continuous access to consolidated, live data eliminates the need to run batch jobs or wait for consolidation processes to complete. At any time, intercompany eliminations, allocations, minority interest calculations, etc., can be viewed in order to easily determine what is complete and incomplete.

Features

Cell Explorer. Use this drill-down tool to explore all aspects of any value, including details of intercompany eliminations, minority interest calculations, and breakdown of consolidated figures.

Eliminations Matching Viewer. View every aspect of inter- and intracompany eliminations, from the entity where the elimination occurs, to the rule creating the elimination, including the debits and credits of each elimination. View highlighted variance entries created by the system to enforce balanced eliminations.

Consolidation Percentage Manager. View and manage all consolidation percentages on a single page.

User Permission Detail. Export a list of all users with their associated application permissions, to meet SEC reporting requirements to report on who has access to see and modify actual data.

Audit Trail Reports. Identify who changed what and when, and use a wide range of search criteria to find changes to data.

Example of Cell Explorer Showing Consolidation Details Behind a Figure.

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Benefits

· Provide self-service reporting to multiple users, freeing up administrative resources

· Slice and dice data in order to understand profit by product by region, expenses by project and by department, and similar analysis

· Perform timely and accurate ad-hoc reporting

· Generate and distribute real-time reports with no waiting

· Avoid dependence on IT for report writing and analysis

· Enhance visibility into performance for all budget managers and executives

REPORTING & ANALYSIS Adaptive Consolidation’s drag-and-drop report builder puts powerful yet easy-to-use web-based reporting in the hands of finance and accounting, budget managers, and executives. Reports are easy to create, fast to run, and always reflect up-to-the-minute, real-time data. By providing an easy way to analyze summary or detailed data and multiple scenarios, Adaptive Consolidation allows users throughout a company to make faster, more informed business decisions.

Features

Management and Statutory Reporting. Meet both management and statutory/legal reporting requirements. Use management reports to examine and analyze information about business performance in order to plan for improvement. Meet reporting standards for IFRS, GAAP, and others.

Drag-and-Drop Report Builder. Create sophisticated reports and analysis with ease. Select desired items from a menu, drag them onto a graphical workspace, choose formatting options, and generate the report.

Choice of Dimensions in Rows and Columns. Easily design your own reports. Choose from among your company’s dimensions, such as business unit, product, or projects, as well as accounts, metrics, assumptions, and time periods.

Filters and Parameters. Limit the data displayed in a report by filtering it by any combination of dimensions, such as a specific sales territory in a certain region. Create a prompt before viewing, for users to select which dimensions to include in the report.

Annotations. Include collaborative explanations, comments and questions on reports. Include an ongoing thread with input from more than one user, or enter single explanations, e.g., of a variance.

Automatic Security/Streamlined Set of Reports. Create one set of standard reports for a group of users (e.g. P&L or Sales Detail) and be confident that users will see only data allowed in their security profiles. Eliminate risk of inadvertently exposing sensitive information, and the need to create a separate set of reports for each user.

Drill-Down. Allow users to analyze the underlying data that contributes to a specific total or rollup value via real-time drill-down capabilities. Go as deep as you want.

Transaction Reporting & Analysis. Automatically integrate transaction-level detail from other enterprise systems, and drill into it to analyze actual data and variances.

Multi-Version Variance Reporting. Compare actual, budget, and forecast data, and display variances as values and/or percentages.

Output Formats. Generate tabular and graphical reports in HTML, PDF, or Excel.

Report Books. Group, save, generate, and distribute reports together with a single request, e.g., for board packages and month-end management reporting.

Email Reports. Easily share reports by via email link.

Snapshot Reports. Save and store “point-in-time” reports complete with annotations.

In-Report Calculations. Create calculations on the fly within reports, such as adding different business metrics or derived financial calculations.

“The biggest benefit of using Adaptive has been the ability to produce management reports. It’s much easier now because Adaptive is the only place that houses data across all platforms.”

–Christopher Reale, CFO, Konica Minolta

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Data IntegrationEffective planning, reporting, and consolidation requires tight integration with multiple systems. Adaptive Consolidation provides a full range of integration options for general ledgers and other enterprise applications, such as ERP, CRM, and HR systems, whether located on-premise or in the cloud.

Import. Standard functionality includes the ability to import data via Excel files, and to export data to Excel or flat files.

Adaptive Connectors for On-Premise and Cloud-Based Applications. Adaptive Connectors enable automated data integration between Adaptive Consolidation and other enterprise systems, located either on-premise or in the cloud. Connectors are available for the most common source systems and databases, and may be deployed at any time during or after implementation.

Benefits of Connectors

· Save time through automation

· Achieve streamlined and secure data integration

· Obtain up-to-the minute visibility into variance from plan

· Eliminate systems interface design cost and user errors

Features of Connectors

· Fully customizable

· Support all data sources

· Support simple to complex mapping requirements

· Extract, transform and load data automatically

· Support audit and exception reporting, including email alerts

· Can be scheduled to import hourly, daily, monthly, or on-demand

Web Services APIs. Adaptive Planning APIs (Application Program Interfaces) can be used to develop custom integrations with on-premise and cloud-based applications.

Committed to Our Customers’ SuccessAdaptive is proud to deliver top-rated customer service, with a Professional Services and Support team staffed with seasoned finance professionals, whose deep product expertise, best practices knowledge, and practical real-world budgeting, forecasting, reporting and consolidation experience is a real asset to our customers.

#1 in Customer Satisfaction. We are committed to our customers’ success, and provide Software as a Service with high standards for customer satisfaction. And it shows – we have received the highest customer satisfaction rankings in numerous surveys of companies using performance management solutions.

Product Feedback. As part of an ongoing commitment to delivering top-rated customer service, our Product Feedback forum provides customers with a way to share their ideas for product enhancement and request new features from within the Adaptive Consolidation application. They can also vote for product capabilities and stay informed about the status of their suggestions. This enables us to provide faster response to customer needs, and bring more enhancements sooner to customers.

Professional Services & Support

Adaptive provides a full range of professional services, including:

Implementation and Application Consulting. We deliver a range of implementation and ongoing application consulting services that are highly flexible and designed to fit your organization’s business consolidation processes, as well as your budget and timeline.

Training. Adaptive Consolidation is easy to learn, with an intuitive web-based interface and straightforward rule managers. Training is designed so that our customers can be completely self-sufficient. We provide formal classes complemented by open access to product documentation, no-cost refresher and new feature training, and an interactive knowledge center.

Support. Adaptive’s world-class Support team is staffed by highly qualified finance and accounting professionals who combine deep application knowledge with strong domain expertise in financial consolidations.

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For more information, call Adaptive Planning today at +1.800.303.6346 or email us at info@adaptiveplanning.com

The Software as a Service AdvantageAdaptive Consolidation is a breakthrough solution in large part because of our software as a service (SaaS), cloud-based delivery model. Our SaaS solution provides organizations with business agility and predictable cost.

Adaptive Consolidation:

Has powerful functionality which is frequently and automatically upgraded. The product is packed with robust and powerful functionality, which is updated on a regular basis. Four times a year, all users immediately get access to extensive new features.

Is intuitive and easy to use. Its web-based, intuitive interface means that organizations can get up and running with minimal training, in a short period of time.

Features rapid deployments. Implementation time can be fast; projects go live in a matter of weeks, which means they are low cost with immediate impact.

Is accessible worldwide. The product goes live quickly and is immediately accessible to employees spread across multiple locations.

Is low-cost. Adaptive Consolidation has a much lower total cost of ownership than on-premise alternatives – up to 77% less over four years, according to analyst firm Hurwitz & Associates.

Requires no IT involvement. As a SaaS solution, no new hardware, software, or IT support is required for initial implementation or ongoing maintenance. As a result, unlike with on-premise software, finance can move forward without needing to rely on an already over-burdened IT organization.

Is low-risk. Unlike large on-premise applications, which have high upfront license fees and lengthy – and costly – implementations, Adaptive Consolidation is low-risk. No new IT resources are required, implementations are short and affordable, and the subscription model allows customers to cancel at any time.

World-Class Security and Uptime

Adaptive provides world-class security and uptime. We partner with an IT services firm for datacenter operations, including infrastructure services, physical security, and backup and disaster recovery services. Additionally, the Adaptive Planning solution features the strongest encryption protocols; user IDs, passwords, and granular user access controls; and a multi-tenant architecture that keeps every company’s data separate from others’. We are committed to delivering world-class customer service. This includes not only delivering top-notch uptime, but also publicizing our actual performance, which averages 99.995%.

“What really impressed us about Adaptive – besides the affordable price – was its software as a service delivery model. We knew we wouldn’t have to install another server and train a system administrator to manage the system.”

–Jeffrey Chalmers, Corporate Controller, Geeknet