Transforming Financial Efficiency while Enhancing Accuracy for a Major Turkish Conglomerate
Key Outcomes
50% time savings through collaborative report preparation
Automated real-time data flow from source ERP, plus the ability to track source-to-target maps
Automated foreign currency translation
Automatic and accurate calculation of IFRS16 adjustment to financials
The Client
Tekfen Holding is a prominent conglomerate in Turkey, with diverse operations across various sectors including engineering and construction, manufacturing, investments, agriculture, and services. The company’s expansive footprint in the Turkish market positions it as a critical player in driving economic growth and innovation across these industries.
The Challenge
Tekfen Holding faced several significant challenges that compromised its financial and operational efficiency:
- Manual and Offline Processes: Collecting data from subsidiaries and producing consolidated financials was time-consuming and prone to errors due to reliance on manual, offline processes.
- Time-Consuming Reporting: Compiling monthly and quarterly management reporting packs required substantial effort and time.
- Budgeting and Planning Difficulties: The inability to quickly and accurately form budgets and model the impacts of changes in budgetary assumptions hindered effective financial planning.
Our Solution
Constellation implemented Oracle’s EPM suite to address these challenges and streamline Tekfen’s financial processes.
The solution created a unified platform that enabled four key finance processes:
- Financial Close and Consolidation
- Planning, Budgeting, and Forecasting
- IFRS16 Modeling
- Narrative Reporting
Key features of the solution included:
- Enhanced speed and accuracy in financial close, planning, and reporting processes.
- Automated adjustments to financials for IFRS16 based on contract-level details.
- End-to-end planning model for all profit and loss (P&L) lines, including revenues, costs of revenue, operating expenses, and other income and expenses.
- Automated modelling of all balance sheet (B/S) items and cash flow, including calculation of loans and borrowings.
Benefits
Key benefits of the solution included:
- Automated Data Flow: Seamless and automated flow of actuals from source ERP systems with the ability to track source-to-target mappings.
- Efficient Financial Consolidation: Automated financial consolidation calculations, including foreign currency translation and intercompany eliminations.
- Streamlined Reporting: The ability to quickly compile management reports with effective collaboration and centralized process management.
- Enhanced Planning Accuracy: Improved accuracy and speed in planning processes through systematic modelling of annual budgets and monthly forecasts, along with the ability to perform what-if analysis.
- Accurate IFRS16 Calculations: Automatic and accurate calculation of IFRS16 adjustments to financials based on individual contracts, capturing all B/S and P&L impacts. The system also provided projections for future IFRS16 impacts.