“The Kellogg Company selected CapB for implementing SAP based PUP/IFRS solution in 11 Latin American countries on a fixed bid basis. CapB was the selcted vendor because of its complete vertical understanding on CPG, deep functional knowledge on SAP particularly on SAP ML, FI, CO and technical knowledge on BW and ABAP.CapB is also Kellogg’s solution provider on SAP BPC BW, FI-CO, Readsoft,Vertex, Hyperion in North America and provides maintenance of the above applications through our Global delivery methodology ”
Kellogg runs corporate period-end closing for US GAAP with inventory valuation based on Standard Cost in SAP. However, for statutory period-end closing for Local Tax GAAP and IFRS, results from SAP are compared with a third party legacy system (TACOS) output and adjusted accordingly for Weighted Average Cost. Several period-end Weighted Average Cost reports are executed on the TAKOS (Kellogg’s legacy Non-SAP Methodology) platform in this regard. Kellogg wanted a SAP functionality would replace the current legacy costing methodology known as TACOS (Kellogg’s Tactical Costing System), wherever applicable including fresh implementation and solution where TACOS is not present.
This SAP implementation effort was focused on 11 Latin American countries over 18 Company Codes.
Within the scope of the SAP Fiscal project, CapB replaced the TAKOS system by a repository of SAP Reports and Utility programs for Local GAAP (Fiscal) and IFRS (Statutory) Valuations, with necessary Calendar adjustments (between USGAAP and IFRS) required at the end of periodic IFRS Close procedures.
The IFRS Reports developed by CapB now cater to various strategic points in the KLA Supply-Chain and coded based on the ABAP platform in SAP.
CapB derived The Actual Cost for IFRS based on multiple Calendar adjustments and period-end Close of Material Ledger (Classic and AVR), estimating the Periodic Unit Price (PUP) or the SAP Actual Cost.
The project was of the highest priority within Kellogg Globally. The mandatory statutory requirement of IFRS including Local TAX GAPP for the 18 Latin American countries, within SAP was of utmost importance, as the legacy “TAKOS” solution was cumbersome and falls short of a complete solution.
“CapB completed the project within Time and Budget to the complete satisfaction of all Stakeholders and users. CapB went beyond the letter of contract and walked the extra mile to ensure the project is a success. CapB’s effort and more importantly knowledge was praised by everyone in the top management.”