Post-merger integration of customer analyses and technical accounting

Our customer, a leading European Internet company, had to comply with numerous accounting regulations according to US-GAAP after being sold to a US-American Internet group. niologic supported the integration of accounting systems and customer data.

Challenge

After being sold to a US company, our customer had to report not only accruals and deferrals according to IFRS but now also according to US-GAAP. For this purpose, it was necessary to make the existing invoicing processes and accruals more detailed. The data of numerous accounting systems had to be merged (data integration) and enriched with descriptive features of the customer, the contract and the product.

niologic had already supervised data integration and numerous customer analyses during sales negotiations. Due to their detailed knowledge, niologic was also entrusted with the post-merger integration of technical accounting.

Procedure

niologic created a data model for linking product and contract data based on billed transaction data as well as customer and contract information.

The data model was updated daily by the subsidiaries using ETL automation, whereby corresponding accruals and deferrals were calculated automatically.

Historical data was processed using machine learning (clustering and text analysis of invoice data) so that even old, active contracts could be properly delimited.

Result and customer value

niologic had about 3 months to create an automation of the ETL processes and enrich all transaction data with their contract history until the final SEC filing. Hundreds of gigabytes of data were processed and transferred to over 2 billion accruals and deferrals. Compared to a classical auditing company, niologic was able to successfully apply its technical know-how as well as its financial expertise to “Big Data”.

All SEC filings were submitted on time based on accruals and deferrals and successful data integration. The continuous reporting of transaction data to the US headquarters was ensured via ETL automation.