How confident are you in your financial close and the accuracy of your financial statements? Are you tired of wasting time doing reconciliations manually, using spreadsheets? Would you like to increase efficiency, productivity, control and visibility while minimising risks and reducing bottom line costs? If so, join SAP, BlackLine and global manufacturing/agricultural giant CNH Industrial for a webinar that will show SAP customers (operating in an SAP-only environment or across multiple ERPs) and other ERP users how to optimise key accountancy and finance processes.

1. Ann Furlong
BlackLine
Stephanie Hudson
SAP
Stoyan Arnaudov
CNH Industrial
Magnesh Singh
CNH Industrial
ARE YOUR ACCOUNT RECONCILIATIONS IN GOOD SHAPE?
See How CNH Industrial Improves Finance Controls
And Automates Key Accountancy Processes
Using the BlackLine Financial Close Suite for SAP® Solutions
26 November 2014

2. Ann Furlong
Director of Operations, APAC
BlackLine

3. WHAT IS AN ACCOUNT RECONCILIATION?
•
Substantiation of the General Ledger account balance by comparison to the real world substance for that account- e.g. Bank Balances, Inventory subledger balance, Payables subledger balance

4. WHY DO WE NEED TO RECONCILE ACCOUNTS?
•
Financial Reporting Accuracy
–
Financial Reports must present the financial status of the company in a timely and accurate manner in accordance with the required accounting methodology
–
The General Ledger balance is the source for all financial reporting to regulatory organizations, stockholders, banks
–
Reconciliations reveal mistakes in the account balances by comparing them to the real world substance for the account
•
Invalid journal postings, Duplicate entries, Missed entries
•
Fiduciary Responsibility
–
To identify potential fraud before it’s too late
•
A Quality Reconciliation substantiates an account balance rather than repeating the activity in the General Ledger

5. LET’S LOOK AT A SAMPLE RECONCILIATION: The rec is complete and there is no variance

6. LET’S TAKE A LOOK AT A RECONCILIATION: What is wrong with this reconciliation?

7. The Utopian Close
Stephanie Hudson
Finance Program Manager, Australia & New Zealand
SAP

8. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 7
The Reality of the New Normal for Finance Professionals
Increasing globalization
Increased focus on risk
Volatility in economic conditions
Ability to Make Sound Decisions to Benefit the Organization
Pressure on margins
Innovative business models
On-going changes to regulatory requirements
Major influence on the Financial Close

9. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 8
Analyze
Execute
Achieve real-time insight into the progress, quality and financial results of the financial close process on any device, for better business decisions and faster issue resolution
Increase the efficiency of your financial “close to disclose” process through automation, integration, faster processes, better collaboration, and intuitive self-service access to financial information
Control
Ensure the quality and governance of the financial close through templates, workflow, and an end-to-end management of the entire close to meet regulatory disclosure mandates
Accounting and Financial Close Need for improved speed, compliance, and insight while reducing costs

10. © 2013 SAP AG. All rights reserved. 9
The Utopian Close: Creating a low risk highly effective financial close.
Source: Deloitte – The Utopian Close – Mh 2013
16%
27%
19.50%
11%
26.40%
My people are motivated and put talents to the best use
We have a process that is clearly defined, managed and
efficient.
We have clear accountability and ownership.
Technology allows the accountants to do more thinking
andless busy work.
Talent
Process
Ownership
Technology
Utopia
Sample 1458
Maturity
20.70%
10.50%
5.90%
43.20%
19.70%
Vast volumes of data coming from different sources
Dispersed accounting teams with lack of visibility and
accountability
Inconsistent application of accounting policies and
procedures
Manual tasks consume our time
Volume
Accounting teams
Policies
Manual Tasks
Technology
Sample 1559
Challenges

11. Accounting and financial close Improve speed, accuracy, and compliance while reducing costs
Sub Ledger
Reporting and Analysis
Consolidation
Entity Close Management
Intercompany
Reconciliation
Notes
Management
Disclosure Management
Starter Kits
Process Control
Master Data Governance For Finance
General
Ledger
Financial Accounting
Entity Close
Corporate Close
Reporting
Disclosure
Account
Reconciliation

12. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 11
Analyze: Insight for better decisions

Easily access large data volumes for better decisions

Solve issues faster by real-time insight into close progress

Proactively simulate implications of financial events
Execute: Speed and efficiency

Reduce closing cycle time to produce financial statements

Drive efficiency through automation and standardization

Provide self-service financial information to stakeholders
Control: Compliance and transparency

Ensure compliance to global & local reporting standards

Produce accurate reports & filings with detailed audit trails

Centrally govern the close to disclose cycle
SAP Accounting and Financial Close

13. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 12
Corporate Close Benefits
44%
Lower audit cost as a percentage of revenue, in companies that streamline and automate compliance processes
Source: SAP Performance Benchmarking
Streamlined Financial Consolidation and Reporting Process
Instill stakeholder confidence by supporting multiple currencies and reporting standards
Save time and money, providing one version of truth
Trace back to the source of information, making the data more reliable and ensure individuals are accountable for their information
Make more informed decisions

14. Accounting and financial close Improve speed, accuracy, and compliance while reducing costs
Sub Ledger
Reporting and Analysis
Consolidation
Entity Close Management
Intercompany Reconciliation
Notes Management
Disclosure Management
Starter Kits
Process Control
Master Data Governance For Finance
General
Ledger
Financial Accounting
Entity Close
Corporate Close
Reporting
Disclosure
Account
Reconciliation

15. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 14
Account Reconciliation Requirements
CFOs / CEOs need to attest the correctness of the financial statements and internal control systems of their entities and corporate group.
The purpose of reconciliation management is to provide reasonable assurance as to the accuracy of financial data at a specific point in time.
The focus of account reconciliation is on the correctness of account balances because they directly roll-up into the financial statements.
It is the process of comparing account data (on balance or item level) that exist in two systems or locations (outside of systems, e.g. on paper), analyzing variances, and making required corrections, so that the information is accurate.
There is a significant qualitative nature of Account Reconciliation. The assessments have to be documented by relevant calculations, clear and complete explanations, and copies of supporting documents in compliance with company policy.
The process and results of reconciliations must be easy to track and verify, and may be checked and signed-off by auditors.
Often, the requirement is also named Balance Sheet Reconciliation.

16. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 15
Reconciliation Functionality in SAP ERP
Financial Accounting
Fixed Assets
Accounts Payable
Accounts Receivable
Leverage your SAP ERP system

17. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 16
Reconciliation Functionality in SAP ERP – Example
however, just running such reports is not sufficient ...

18. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 17
SAP Financial Closing Cockpit
If you already use SAP Financial Closing cockpit for Entity Close, leverage it also for executing reconciliation functionality in ERP and for documenting its results ... still you need more ...

19. Ann Furlong
Director of Operations, APAC
BlackLine

20. ABOUT US
•
Global headquarters in Los Angeles with regional main offices in Sydney and London
•
Leader in Enhanced Finance Controls & Automation Software category
•
Nearly 1,000 clients (many in the Fortune 500/Global 1000)
•
Over 100,000 users worldwide in 100+ countries
•
First to market and offer software to automate the entire financial close process
•
BlackLine Certified Implementation Professionals all around the world

21. GLOBAL DEPLOYMENT
BlackLine OnDemand users
(100+ COUNTRIES)
BlackLine Offices
BlackLine Certified Partners

22. •
The BlackLine Financial Close Suite for SAP® Solutions is an SAP-endorsed business solution and is the only financial close solution to achieve this
•
Solutions endorsed by SAP are complementary to SAP software offerings, have been specifically integrated with SAP solutions and tested by SAP
•
BlackLine’s SAP Connector seamlessly integrates BlackLine to SAP Financials
SAP PARTNERSHIP

23. BLACKLINE CLIENTS IN APAC (PARTIAL)

26. My biggest challenge around the closing process is: a) Lack of visibility b) Little/no standardisation of reconciliations c) Too many manual processes d) Unclear ownership of tasks e) Other

27. EFFICIENCY, SPEED & VISIBILITY REDUCED COSTS AND RISKS
CONTROLLED FINANCIAL CLOSE
BLACKLINE PROVIDES

28. POLICIES AND PROCEDURES
WORLD-CLASS PROCESS
STANDARDISATION
AVAILABILITY
TRAINING
CONTROL

29. BLACKLINE PROCESS

30. •
REAL-TIME MONITORING AND REPORTING
•
CONTROLLED PROCESS
•
DATA INTEGRITY & INTEGRATION
•
SIMPLE, SECURE SaaS SOLUTION
BLACKLINE FINANCIAL CLOSE SUITE FOR SAP® SOLUTIONS

31. How are you currently handling account reconciliations?
a) BlackLine
b) Excel
c) Other third-party software
d) Internally developed tool/system
e) Doing manually

32. ACCOUNT RECONCILIATION: BLACKLINE HIGHLIGHTS & BENEFITS
•
Used for entire balance sheet (pre-paids, accruals, bank, sub- ledger, debt, equity, etc.)
•
Auto-certification of low risk reconciliations
•
Templates-based process for standardisation and quality
•
Supporting documents – can be saved/accessed from within the system
•
Approval workflow – multiple levels with flexible scheduling
•
Automated e-mail alerts for proactive notification/monitoring
•
Reporting for real-time status updates
•
Centralised, global access – anywhere, anytime
•
Multi-currency AND multi-language (available in 15 languages!)
•
Easy integration with existing ERP, GL systems

33. WORRY-FREE SECURE SAAS SERVICE
•
No software to maintain or install
•
Quick implementation
•
Hot disaster recovery built-in
•
Encryption of data in transmission and at rest
•
Redundant world-class data centers – US & EU
•
First and only financial close software provider to successfully complete the following information security and controls audits:
–
ISO 27001
–
SSAE 16 SOC 1, SOC 2, SOC 3
–
ISAE 3402

34. SAP CONNECTOR
•
Delivered by BlackLine as an ABAP add-on which can be easily installed on the customer’s SAP ERP system
•
Allows designated users to load SAP balances and information directly to BlackLine
•
No extra programming required
•
Uses pre-defined SAP security model and connection settings – no security changes required
•
Company Code, Account, Business Area, Trading Partner and Profit Center level balances
•
Other financial data – eg. Accounts Payable, Accounts Receivable and Fixed Asset sub-ledger data, Currency Rates, etc.

35. ROI & CUTTING COSTS
•
Auto-certification
•
Increased staff productivity
•
Reduced paper, printing, storage overhead, auditor fees
•
Improved process management
•
Faster close
Return on investment is one of the most important indicators of value
MeadWestVaco Corporation ROI: 495% Payback: 2 Months
Cox Communications ROI: 227% Payback: 6 Months
Education Management Corporation ROI: 138% Payback: 10 Months
“Using BlackLine software alongside SAP applications has greatly increased the visibility, efficiency and accuracy surrounding our account reconciliation process. We now have a completely electronic and paperless process for how we review reconciliations.” Laura Darbro, Zurich VP of Close Operations and General Accounting

36. EXECUTIVE DASHBOARDS
Dropdown menus make it easy for users to switch between roles and periods.

37. ACCOUNT GRID
Quickly see statuses of account reconciliations, account identifiers, risk, currency, balance and unidentified differences.

38. BANK ACCOUNT RECONCILIATION
Easily add comments or supporting documents to the reconciliation.

39. ADDITIONAL INFORMATION
Additional information such as the account type, preparer and approver, company policy, and procedures are easily accessible within the application.

40. AMORTISABLE PREPAID RECONCILIATION
Add comments or supporting documents to the reconciliation, helping to ensure completeness and simplify the review process.

41. Easily identify unmatched and matched transactions.
MATCHED/UNMATCHED GRID

42. Reporting gives management real- time information to better manage their processes
REPORTING

43. REPORTING – MY FAVORITE REPORTS
•
Users can move frequently used reports into their My Favorites Folder.
•
Those reports can be run or scheduled.
•
The reports can be edited (such as adding or deleting columns, filtering, and sorting) and saved to meet the users needs.

44. SAMPLE REQUIRED ADJUSTMENTS REPORT

45. Magnesh Singh
Financial Controller
CNH Industrial Capital Australia
Stoyan Arnaudov
Chief Financial Officer
CNH Industrial Capital Australia

46. Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited.
CNHI Capital Australia BlackLine Implementation Project

47. 46
BlackLine APAC Webinar
1.
CNHI N.V - Corporate Profile
2.
CNHI - Financial Services
3.
CNHI Australia - Group Overview and Outlook
4.
CNHI Capital Australia – BlackLine Implementation Project
5.
Iveco Capital Russia – BlackLine Implementation Project
6.
CNHI Capital Australia – Next Steps in Utilizing BlackLine
Contents

48. CNH Industrial
Our Products are tied together by Common Purpose

Professional income-producing industrial equipment and commercial vehicle customers

Full line distribution model through 12 industry recognized brands, with wide geographic coverage in 190 national markets

Best in class powertrain technologies

Over 71,000 employees, 62 manufacturing facilities, full lifecycle product services and financing
One of the world’s largest capital goods companies with 2013 sales of over $32 billion and assets of nearly $54 billion
47

49. Agricultural Equipment 88%
Commercial Vehicles 3%
Powertrain 8%
CNH Industrial Company Overview
Construction Equipment
Commercial Vehicles
Agricultural
Equipment
¹ Excluding financial services and before inter-company eliminations
²CE in negative operating profit position in 2013
3 Including financial services and after inter-company eliminations
$16.8bn
$4.4bn
Powertrain
$3.3bn
$11.3bn
FY 2013 INDUSTRIAL NET REVENUE BY SEGMENT¹
Agricultural Equipment 47%
Commercial Vehicles 32%
Construction Equipment 9%
Powertrain 12%
INDUSTRIAL OPERATING PROFIT ($2.1BN) BY SEGMENT FY 20131,2
CONSOLIDATED NET REVENUES BY GEOGRAPHY FY 20133
INDUSTRIAL NET REVENUE BY SEGMENT FY 2013¹
EMEA 42%
NAFTA 28%
LATAM 19%
APAC 11%
Note: numbers may not add due to rounding 48

50. Integrated and Diversified across Regions and Asset Classes
CNH Industrial Capital
NAFTA
LATAM
EMEA
APAC
TRADE
by Region
70%9% 21% AGCECV

Run as one business unit since 2013

Common policies and practices across Regions

Multiple operating models
More than 550k customers
and ~3,100 dealers served worldwide
1,330 employees
14.7
8.5
1.0
1.5
3.5
50%
29%
4%
12%
5%
Managed Portfolio $29.2 billion (June 30, 2014)
by Segment
1 includes Iveco Capital
49

51. 50
BlackLine Implementation - CNHI Capital Australia Project Evolution
Project Evolution
2012
•GL Reconciliations performed in Excel spread sheets
•Transit Accounts having significant balances – up to $20m
•Time inefficiencies and variations noted compared to SAP balances and manual reconciliation balances
•Missing copies of reconciliations
•No major follow up on outstanding items
•Ageing of Outstanding Items were unknown
•Lead to a major write- off
2013
•Implementation of BlackLine
•Monthly GL reconciliations and sign-off
•Accounts with proper purposes stated
•Visibility of outstanding items
•Started ageing outstanding items
•Lead to weekly monitoring of the transit accounts balances
•On-time identification of operational and accounting errors
2014
•BlackLine ageing reports analysed on monthly basis
•Reconciliation processes and procedures added
•Reconciliations of key accounts performed within the 3-day close

52. 51
BlackLine Implementation – Iveco Capital Russia Project Updates
Project Updates
2013
•GL Reconciliations performed manually in Excel spread sheets on a “when required” basis
•There was no visibility of the transit accounts and no reconciliations of those accounts were performed
•Purpose and procedures of GL accounts were unclear to the local team and any new starters
2014
•Implementation of BlackLine
•Monthly GL reconciliations and sign-off
•Accounts with proper purposes defined
•Started ageing outstanding items
•On-time identification of operational and accounting errors

53. 52
BlackLine Implementation – Next Steps in 2015 The Future
White Glove Assessment
•Evaluate current use of BlackLine
•Explore ways to improve on product underutilization
•Discuss applicability of new enhancements
Task Management Module
•Manage Tasks and Workflows
•Improve visibility on Tasks
Journal Entry Module
•Centralize and Automate Manual month-end Journals
•Streamline workflows
•Improve Controls

54. Questions? info@blackline.com
EFFICIENCY, SPEED & VISIBILITY REDUCED COSTS AND RISKS
CONTROLLED FINANCIAL CLOSE