TaylorMade Golf - Grant Thornton

TaylorMade GolfA growing up year: Oracle Financial

Consolidation and Close Cloud and

TaylorMade

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Speakers

Vanessa Koenig

Sr. Financial Analyst

TaylorMade Golf

[email protected]

Pamela Stone

Manager

Grant Thornton

[email protected]

Lakshmi Devulapalli

IT Project Manager

TaylorMade Golf

[email protected]


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About Grant Thornton

Office locations

Reach

Our services

59 offices spread across 30

states and Washington D.C.

Serve 36% of companies on the

2017 Fortune 500 list and 25% of

companies on the Russell 2000 list

• Assurance • Tax • Advisory

PeopleMore than 8,500

professionals in the U.S.

Partners594 partners serving more

than 8,000 clients in the

nation

RevenueGT U.S. net revenue equals

$1.74 billion


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About TaylorMade Golf

Established: 1979

Employees: 1200 +

Headquarters: Carlsbad, California

Markets: US, Europe, Canada, Japan, Korea, APAC

Customers: Golf distributors, retailers, retail customers

Retail: 89% Wholesale, 11% Direct to Consumer

Distribution: Global, across multiple countries

ERP: EBS R12.1.3+

Leading global golf brand of golf clubs, balls, bags and accessories


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Business needs

2018 was the first full year TaylorMade started doing business on its

own.

The consolidation tool should:

• Assist in the preparation of monthly, quarterly and annual financial

statements

• Allow the addition of new entities as the company grows

• Facilitate intercompany eliminations

• “Out of the Box” application that allows minor customizations per

the company’s business needs

• Flexibility in reporting based on company’s internal attributes

(separate or combined)

TaylorMade was spun off from adidas during Q4 of 2017 and initiated a project to establish

its own consolidation and reporting application as a standalone company.


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Requirements: consolidation & reporting

• Multi-currency application allowing

analysis of legal entities in their

local currency and translated USD

value

• Dimensions that align with the

EBS account fields – accounts,

entities, cost centers, etc.

• Data integration with multiple

sources including Oracle EBS

• Preparation of monthly, quarterly,

and annual financial reports ready

for audit and published to the

leadership team, as well as,

external parties

• TaylorMade needed to maintain the

same level of reporting they had prior to

the separation, i.e. the ability to slice and

dice data by the following company

attributes:

- Brand – multiple brands (i.e. TaylorMade, Ashworth, Adams etc.)

- Cost Centers – need to analyze various overhead costs

- Product Line –multiple product lines (i.e. Metalwoods, Irons, Putters, Golf Balls, etc.)

- Management Business Unit (MBU) –areas of business responsibilities that roll under each legal entity. Today, there are more than 20 different MBU's across the company


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Application selection. Why FCC?

• Global solution

• Integrated platform

• Financial reporting

• Intuitive UI

• Data integration with EBS and flat files

• Cloud infrastructure

• Scalability for company’s future growth

PBCS

PSPBCS

PBCS Enterprise

FCCSEPM

Cloud Platform


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Growing up with FCCKey issue:

During the FCC design session in 2017, it became clear that the standard 2 custom dimensions

application of FCC would not be sufficient for TaylorMade, due to their multiple reporting attributes.

Additionally, TaylorMade needed to be off of the adidas consolidation tool (SAP GRAPE) by mid-2018.

Journey:

• The waiting time (not expected from initial time estimates)

• Commitment of resources

• Realigning expectations to the leadership team

• Start and stop of the implementation

• Deadline rush/Cramming

• Preparing for year-end audit sign-off of historical data (GRAPE & FCC were different)

• GT working on a solution with Oracle

• TaylorMade trusting GT & Oracle to deliver on an application to report


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Growing up with FCC, cont.Decision:

• Participate in the Oracle preview program for Extended dimensionality.

• Continue FCC implementation with 2 custom dimensions in order to go live by mid-2018.

Work-around:

• Cost Center was set up as its own custom dimension

• Brand and Product Line were combined into one custom

dimension

• Product Line populated the attribute dimension

• MBU was rolled into the Entity dimension

• Data matching/validation with prior application account

structure to FCC structure


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Work-around

In preparation for combining Brand and Product

Line into one dimension, we decided which

attribute would be the main outline of the

dimension and which one would populate the

Attribute Dimension. We decided on the brand

dimension because it was more widely and

frequently used.

Step 1: Set up the brand dimension members


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Work-around, cont.

Step 2: Set up the Attribute values

under the Brand's Custom Attribute

Populate the Attribute Dimension

with the Product members


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Work-around, cont.

Finished product

Custom dimension that presents

the combination of TaylorMade

Brands and Product Lines


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Smart View

Using Smart View

Product Line (Attribute

Dimension) is available under

Member Selection. Provides

the same functionality as other

dimensions.


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Smart View, cont.

Like other FCC dimensions, the Product Line works in conjunction with the

other dimensions, including the Brand dimension, to provide additional

analysis.


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Report Writer

Using Attribute Dimension in

Report build

• Brand – selectable by user

• Product Line – part of the

grid and attached to an

account

All feasible due to Attribute

Dimension


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FCC system gainsWith the implementation of FCC, the company has gained savings in their close process by:

• Creating FCC rules to automatically calculate a Key Performance Metric- Previously the process required a manual extraction of data into excel to

perform a calculation within the spreadsheet before being able to book a journal entry

- 3 steps decreased by a rule that generates a value during consolidation

• Using data management mapping to transform an EBS non-intercompany account with the supplied intercompany code to an FCC intercompany account

• Automating loads from on-premise Oracle EBS application by using EPM Automate

• Streamlined and efficient consolidation process - Validation of each entity, followed by the click of a button to translate and

consolidate

- Has shortened the process by approximately 2 days


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Team improvementsThe participation of the TaylorMade team members in the implementation of FCC, allowed

them to see other areas they could leverage with the new consolidation tool:

• Revamping of the chart of accounts for consistency across

the board: Creation of a policy to instruct all legal entities on

what type of activity should be used for each account

• Setting the standard: Regional training on accurate data

submission, allowing the corporate team to spend more time

analyzing results versus making adjustments

• Accountability at the regional level: Education of the regions

on how to use Smart View to validate and analyze their

financials once consolidated

• Overall project implementation allowed the team to identify

and resolve reporting issues to ensure more accurate and

consistent reporting


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Still to come…Due to the timing of when TaylorMade had to be functioning using its "own" consolidation

tool, the FCC implementation focused on going live with an application that would allow

them to report effectively and efficiently.

• We are not done taking advantage of what Oracle EPM has to

offer, the following initiatives are in the works:

• Parallel close in the FCC 4 custom dimension

- Go-live January 2020

• Utilizing task manager and engaging regions by

assigning them tasks

• Fully automating the EBS loads

• Implementation of PBC

- Go-live September 2019


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Questions?

Documents

TaylorMade Golf - Grant Thornton