The Solution: MagicOrange
MagicOrange was selected as the platform of choice to provide covered allocations of all central function’s charges to the consuming entities across all groups and divisions. In addition, MagicOrange enabled the allocation of central and local insurance charges per country and legal entity responsible for the insurance charges.
MagicOrange supported the client with the review of allocation models from various service units by showing the cost flow from the entity incurring the cost, the on-charge to the service unit, and the recovery of costs from the end-consuming business unit.
Using MagicOrange, our client had a combined view of all costs across the globe in one currency. Moreover, it allowed users to see which entity is providing the cost, routing the cost, and consuming the cost. For the first time, CFOs were able to see the total cost they are managing – a game changer for the company.
Now any user can log in from anywhere in the world and see changes from any of the previous models. MagicOrange also assisted with the complex costing of transfer pricing and managing tax rules throughout the model, as well as providing ‘What-If’ scenario views showcasing various charge-outs.
Benefits Realised
The implementation of MagicOrange delivered numerous benefits:
Enhanced Cost Clarity: Simplified cost management and eliminated reliance on spreadsheets.
Cost Driver Insights: Valuable insights into cost drivers across divisions, empowering better business decisions.
Accountability and Optimisation: Information necessary for business units to manage costs effectively, fostering accountability and optimisation.
User Experience: Intuitive and user-friendly platform providing end-to-end transparency and visibility.
Comprehensive Cost Analysis: Ability to drill down and filter specific costs, enhancing financial analysis.
Efficient Charge Management: Improved identification and allocation of costs, optimising resource allocation.
Consistent Charge-Out Approach: Establishment of a unified and rational charge-out approach for central costs.
Rapid Time to Value: Realised benefits within one month of implementation.
