If they could only bring all their transactional data together that sits in their ERPs, most companies would be able to understand fully their working capital position. The problem is that requires full understanding of the components and dynamics of working capital as well as the deep knowledge of how to extract data from ERP databases. This ERP plug-in was developed by a Belgian company, DiscoverEdge, who are a team of business intelligence experts with an in depth knowledge of working capital management. 

How it works

The plug-in extracts data directly from SAP and other databases. It creates a working capital dashboard from the extracted data, as shown below. Informita have found that Working Capital Manager can be ‘up-and-running’ in an average of 6 days. In extreme cases where the ERP has been heavily customised it may take a little longer.

Working Capital Manager dashboard

Source & Copyright©2014 - Informita

 

There are now plugins for SAP, Microsoft Dynamics, Unit 4, and Baan.

Users can drill down view information at any level all the way down to the individual customers, suppliers or stock items. And can also monitor trends and comparing these results against earlier performance.

Simulations

The Working Capital Manager gives you the ability to set targets for working capital performance that are simply communicated and transparent. To ensure that targets are reasonable there is an instant simulation tool that tells you quickly how many days of DSO (Days Sales Outstanding), DIO (Days Inventory Outstanding) and DPO (Days Payable Outstanding) must be achieved, see example.

Working Capital Manager Simulation

Source & Copyright©2014 - Informita

The biggest impact of the Working Capital Manager is that companies no longer need to ask the question of how they are performing; they can now drill down to the causes of that performance in an instance.

Users

There are several Working Capital Manager installations in Europe managing working capital in Europe, North America, and Asia. The Group Controller of Pinguin NV, in Belgium said, “When The Working Capital Manager was first plugged into SAP, it instantly led us to valuable insights and a list of potential actions.”