Challenge
A multinational client faced a significant disruption when more than 20,000 intercompany accounts payable (AP) invoices failed to post automatically through their Electronic Data Interchange (EDI) process. They also had issues with their customer invoices. With the year-end closing approaching, the finance team was under pressure to resolve these fallouts quickly.
The root causes were not related to tax, but rather to a range of SAP set-up and operational issues such as incorrect master data, non-compliance with territorial rights according to the client’s sales and distribution structure, and other system- and process-related discrepancies. The volume and complexity posed a significant risk for timely financial reporting.
KGT’s Solution
KGT was engaged to identify and help remediate the issues within a minimal timeframe. Leveraging our deep expertise in finance and indirect tax processes, as well as SAP system landscapes, we conducted a structured analysis of the fallouts, categorized and prioritized the cases, and worked closely with the finance, tax, customer service, global trade management, logistics, and IT teams. Within 3,5 weeks, KGT had mapped out the root causes, provided clear resolution paths, and enabled IT to reprocess a substantial share of the blocked invoices.
Results
Thanks to KGT’s intervention, the client’s IT department was able to successfully post the majority of the invoices before the financial year-end closing deadline. In addition, KGT delivered recommendations to help the client prevent similar root causes in the future, enabling the organization to strengthen its internal follow-up and monitoring processes. The finance team regained control over the reporting process, significantly reducing manual work and operational stress.
Impact
- Reduced financial reporting risk by ensuring a timely year-end close.
- Minimized manual effort for the finance team, allowing them to focus on value-added activities.
- Improved collaboration between Finance and IT through structured root cause analysis.
- Clear roadmap for preventing similar fallouts in future cycles.
Are Intercompany and Customer Invoice fallouts disrupting your finance operations and putting your reporting timelines at risk?
Contact KGT to discover how our expertise can quickly resolve system and process blockages - ensuring your invoices get posted, your deadlines are met, and your teams can focus on driving business forward.
