After 75 years of sustained growth, Alaska Airlines needed to accommodate new reporting and regulatory requirements in Mexico. However, they had no process or system in place to perform transactions in foreign countries without doing it manually.
Meeting new requirements in Mexico
Alaska Airline’s accounting and operations in Mexico needed to comply with the different local requirements established by the local statutory department (SAT). We started by creating a project roadmap that would allow data from accounts payable and other sub-systems to flow into the general ledger without needing to do any conversions by hand. Reporting was configured to generate the SAT required reports quickly and simply, doing away with spreadsheets and external systems. The Report generation is done directly from PeopleSoft, eliminating inconsistency problems. Our plan for procure-to-pay included implementing new functionality that allowed users to enter data in different currencies, and then validating and testing the functionality during vendor conversion.
- CHALLENGE PRESENTED
- Eliminating the need to manually convert foreign currency. New reporting and regulatory requirements, and electronic procure-to-pay invoicing.
- proposed SOLUTION
- Develop an agile roadmap with deliverables to quickly configure multi-currency and improve data consistency between sub-modules and GL.
- Results achieved
- Met new reporting and regulatory requirements in Mexico. Also met the need to automate conversions of currency for local and consolidated reporting from HQ in Seattle.
SpearMC helped pave the way for us to successfully meet Mexico regulatory requirements. We wanted to stay in a single ERP and they guided us with the right amount of confguration, reporting, business process change and training.
HOW WE DID IT
We helped Alaska Airlines prepare their PeopleSoft Financial System for Mexico regulatory and reporting requirements using the following tactics:
- Training end users on key issues related to foreign currency processing, regulations and reporting;
- Developing custom training materials for end users;
- Deployment of system functionality that allowed transactions to be entered in any currency;
- Configuration of accounting templates to enable automated flow of accounts payable data into the general ledger;
- Providing suggested business processes and preparations for the usage of multi-books;
- Identifying and documenting configuration steps required to implement multi-books.
PREPARED FOR THE FUTURE
With our help, Alaska Airlines gained the ability enter data into their PeopleSoft financial system without making manual conversions. However, we didn’t stop there. We provided their team with extensive training for PeopleSoft usage and other subjects related to foreign currency usage faced by multinational companies. Alaska Airlines ended up with a fully transformed business process that set them successfully expand into new countries.Download The Case Study PDF