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Regulatory Information Notices

Wednesday, 13 November 2019

Meet Compliance obligations with Regulatory Information Notices and SAP solution integration

A Summary.

The Australian Energy Regulatory (AER) requires a more granular level of ‘actual’ financial and non-financial information in the Regulatory Information Notices (RINs).
Existing processes and systems were not designed to capture and categorise information in the manner required for the new regulatory reporting purposes. In addition, the reliability of existing information is compromised by the substantial number of records kept off corporate systems in Excel spreadsheets: not integrated and prone to error.
The client, an Australian electricity utility, required efficiencies in the effort to capture data and generate reports which met the new RIN requirements. We were engaged to develop a roadmap to deliver capability in a logical sequence, facilitating core components of the RINs while seeking to manage the workload on the business.

Regulatory Information Notices

The Challenge.

  • The clients fiscal year differed from the regulatory fiscal year complicating the asset accounting design.
  • The current fixed asset valuation was not accurate in the SAP General Ledger for regulatory and tax accounting purposes.
  • The AERs RAB model is not readily aligned with an accounting model contained within in the ERP.
  • The AER reporting requirements do not form part of the normal course of business.
  • The solution was not to have a large impact upon field processes.

The Solution.

  • The first initiative in the roadmap was ‘migration’ to the SAP New General Ledger and New Asset Accounting.
  • Implementation of a parallel ledger with a differing fiscal year for regulatory reporting.
  • Implementation of regulatory specific asset processes and asset valuation.
  • implementation of capability within the general ledger to capture the regulatory expenditure category.
  • Provision of a centric solution.
  • Think180 continue to be involved with the solution architecture, design and rollout of further initiatives in the Regulatory Information Notices Compliance program of work.

The Benefits.

Productivity improvement through:

  • Real time update of the regulatory general ledger by expenditure categorisation removing the need to manage in off-line spreadsheet.
  • Real time update of the regulatory fixed asset valuation removing the need to manage in off-line spreadsheet.
  • Minimising the duplication of effort by avoiding the completion of off-line spreadsheets.

Risk Reduction through:

  • Less human intervention in transaction allocation.
  • Records captured in corporate systems.
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