Moving to a consolidated and efficient accounting systems

The current RCS Group evolved from two independent businesses. The merger resulted in duplication and inefficiencies and led to extensive manual intervention.

Business Needs

RCS Group was operating on multiple financial accounting software systems, while the Foschini Group used SAP R/3 Financials. The amalgamation of these two companies resulted in the following challenges:

  • Inefficiencies due to duplication of processes and procedures, software licensing costs and considerable reconciliations
  • Extensive manual intervention and senior management involvement were required in order to meet reporting deadlines, timeously
  • Additional head count was required with new acquisitions as the current platforms were not robust and flexible
  • Significant manual and Excel intervention required to produce the necessary reports to facilitate business decisions and needs analysis
  • The many customisations of the platforms created a cumbersome and inefficient general ledger infrastructure, with unnecessary risks and people-dependant processes
  • System enhancements, such as online procurement, were complicated and difficult to integrate and implement.

Solution
It was decided to provide a single business management solution by replacing SAP R/3 and Pastel with one ERP system to ensure valid, accurate and complete financial records, as well as a fully integrated procurement system. Dynamics GP and the Information Worker suite of products were selected for this purpose.
This meant re-engineering all of the accounting processes and procedures. Data conversion and migration were also required for the historic financial information.
At the same time, various aspects were taken into consideration and ownership of financial results and commitments were transferred to the various cost centres, verbal communication and misunderstanding of the processes were ironed out and the amount of manual work, which led to duplication, was reduced. Another reduction was in the printing and paper costs which had previously been considerable.

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