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Tagetik for Statutory and Management Consolidation

Corporate Performance Management Software from Tagetik manages complex financial consolidation processes in one single structured solution, to assure consistency across statutory and management reporting.

One of Tagetik’s main objectives is to consolidate the financial results in a correct way. The building blocks to achieve this include:

  • Chart of Accounts with control groups: The group accounting structure is expanded by control groups, which make the link between the accounts and the related details and variations (depreciations, write-off, purchases, …). This allows Tagetik to calculate the cash flow-statement using P&L and balance sheet input
  • Entities and hierarchies: Define legal and managerial reporting units, and set unlimited hierarchy structures on top of them
  • Legal structure: Give in the ownership structure and the consolidation rules per period. Since entity-hierarchies can be stored over time, a consolidation can be made using the hierarchical structure of previous year
  • Currency conversion: Enter or load data in any local currency and see the impact directly on the consolidated amount
  • Intercompany matching: Intercompany matching can be done in a decentralized way using the web-app. After matching, relationships can be locked so no further changes are possible for this intercompany position

With this setup, consolidations can be calculated for many accounting standards (GAAP/ IFRS) without having to run multiple consolidations. Data can be gathered manually or through an integrated Extract-Transform-Load process. With the ETL-function, fully detailed local trial balance-files can be imported into Tagetik. In the ETL-tables, these local accounts are mapped to the correct Group-account. To investigate whether an amount was loaded manually or through ETL, drilling through the origin of each amount is possible. This increases the transparency of Tagetik.

After each step validation checks are included, either blocking or non-blocking. This ensures a correct consolidation process. Also, since data is stored at the bottom-level entities and at the relationships between two entities, consolidation is always done from the bottom-up. This again benefits the transparency of the resulting consolidation.

In the "Cockpit”, the Monthly, Quarterly, Yearly or Weekly closing-steps can be monitored. All steps necessary for a successful closing are presented in a graphic way. A clear overview is kept in the cockpit. When more details are required, double-clicking will provide them. As such, processes can be managed better, shortening the closing cycle.

Financial reporting can be done directly in Excel, using pre-built logic for credit/debit signs, automated rounding and drill-down capabilities. Data is however always directly linked to the Tagetik-database. Data is never stored in local files, but always in the central Tagetik-database. In the Excel-environment Tagetik-reports can be used, or ad-hoc reports if necessary.

element61 has expertise and certifications in Tagetik's consolidation solutions, so don’t hesitate to contact us for more information.