Makita needed a solution for managing incoming and outgoing payments In the Nordic countries and Estonia
Makita has established directly operated business bases in about 50 countries around the world, and has upgraded its sales network in over 170 countries and after-sales service capabilities to become one of the leading companies in the industry. In addition, Makita is producing power tools in plants in China, the U.S.A., the U.K., Germany, Brazil, Romania and Thailand. Currently, about 90% of our group’s manufacturing work in terms of production volume is carried out overseas.
Makita Oy wanted a solution for managing incoming and outgoing payments. This solution had to have a centralised system for payment traffic so that country-specific payment formats and bank connections would not be required in the ERP system.
Makita’s payment traffic in Sweden, Norway, Finland and Estonia goes to banks through Nomentia Payment Manager in the ISO 20022 XML format. ERP generates payment data in a single format and Payment Manager sends the data to the banks.
Makita Oy Runs Nomentia's Payment manager
Business is good at Makita power tools. This puts positive pressure on the financial management. Here, the engine running the company’s payment traffic is Nomentia's Payment Manager, a specialized payment factory system for country-specific payment formats and bank connections.
A new payments solution was required when the Finnish subsidiary of the Japanese corporation adopted the ERP LX (BPCS) enterprise resource planning system that is in use in the rest of the corporation. In conjunction with this Makita’s financial management wanted a centralised online banking solution that would manage the inflow and outflow of payments in the Nordic and Baltic countries.
Simple processes were what needed at Makita: the new enterprise resource planning system would have to generate all payment processing data in a single format. The payment factory would take charge of bank connections and make the required country and bank-specific changes in data. It would also have to collect reference data coming from banks and send them on to the sales ledger in a single format that is compatible with Makita’s ERP system.
The solution for this was not an easy one, however, because four different countries were involved, plus the banks and the clearinghouses Bankgirocentral in Sweden and Nets in Norway within their payment environment. The volumes were also large: each month, Makita Oy sends some 10 000 invoices and makes several thousand payments as well.
"We have used the Nomentia solution for payments and accounts for years and we have been extremely satisfied with its operational reliability. We also quickly saw that the SaaS version of the solution is reliable and easy to use."
SOX lays out control
Since November 2011, Makita Oy’s outgoing and incoming payment traffic from Sweden, Norway, Estonia and Finland has gone through Nomentia payment factory solution. There is now a single data format for outgoing and another for incoming data in the company’s ERP system - the payment factory takes care of everything else. The company uses three banks.
"It is very important for Makita to be able to make electronic payments in all Nordic countries and partly also in the Baltic countries so that the suppliers receive reference data. It is also of utmost importance that Makita’s finance department receives customers’ payments with the references in the accounts.
In the Payment Manager Makita’s monitoring system will stay the way they want it to be. According to Makita’s risk management system, payments have been centralized so that only the CFO and the accounting manager have access to the payment system and are able to authorize payments to the bank."
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