TYROLIT FINANZ AG

Finely-honed Netting

The TYROLIT Group is positioned as one of the world’s leading suppliers of innovative solutions in grinding, cutting, drilling, honing, dressing and polishing. The abrasives manufacturer, with over 4,600 employees and 29 production facilities in 12 countries, is part of the Swarovski Group. In 2014, TYROLIT generated a turnover of EUR 602 million.

The Challenge

At TYROLIT, reconciling intercompany invoices among 50 group companies at numerous production sites and handling many internal transactions is a complex task. In addition to often lengthy reconciliation processes, the large number of payments leads to an expensive, cobweb-like network of cash flows. TYROLIT decided to simplify both intercompany reconciliation and cash flows significantly, and to centralize global FX exposure.

The Solution: Automatic reconciliation and dispute resolution

Now, the treasury can transmit all receivables and payables in the group from SAP to tm5 and centrally process them in ICRECON at a mouseclick. First, the system reconciles all single invoices. Then, the local financial managers bilaterally verify and confirm the few remaining items manually. If a discussion arises between two parties, they can use the chat feature integrated in tm5 at the invoice level instead of laborious email correspondence. After completing the netting process, treasurers can export the netted items from tm5 to SAP. The ERP system processes and books all cash flows automatically on the appropriate intercompany cash pool accounts. As a result, accounting processes have completely replaced bank transfers for most netting payments.

Within nine months, the formidable project was rolled out worldwide for all group companies and achieved all the ambitious goals it had set.