The Japanese corporation Steel Center Europe, Ltd. has a good overview of its finances thanks to the implemenation of a SAP information system, carried out recently by a Pilsen based implementator AIMTEC a.s. The most important benefits achieved through the projects are the financial management support for both Czech accounting as well as IFRS, book keeping, preparation of data for reporting and dual currency accounting.

Steel Center Europe, Ltd. in Humpolec represents a join venture of two Japanese investors – the Sumitomo Corporation and Toyota Tsusho Corporation. Production program is the fabrication of steel sheets for the manufacture of automotive bodywork. There are three production lines installed on the production floor – longitudinally separating line, transversely separating line and a notching press. Major clients include TRCZ, Toyoda Gosei, Daikin Industries or MATADOR Automotive.

SAP ERP – system for international companies

The tender process for a new information system was won by Aimtec, who supplies the ERP SAP Business All-in-One. This system is well recognised among international companies as it supports the International Accounting Standards (IFRS). The system was implemented in the areas of Finance, Controlling, Assets, Warehouse, Purchasing and preparation of purchase planning. As an experienced supplier, Aimtec is also able to integrate SAP into different systems. Steel Center Europe sought to unify the financial module with their productive system SCAMS in the area of production management.

Benefits of implementation

The main advantage of implementing financial and asset modules within SAP ERP is the support of electronic communication with banks and monitoring contract costs (controlling), replacing the current time consuming manual work with automatic reports, and support of accounting and reporting in dual currency CZK/EUR in accordance to the actual exchange rate. The principle of the so-called dual currency lies in the fact that the company uses two main ledgers, one for Czech accounting and one for accounting subject to international standards IFRS. The basic currency of the IFRS ledger is EUR, therefore these accounts are “exempt” from the exchange rate differences of EUR transactions, hence showing a financial result considerably different from the Czech accounting results.

The project ran from May to October 2009. Live operation successfully commenced on October 1, 2009.