Bonus Accrual Automation

The Problem:

Our public client was spending a significant amount of time calculating and updating the bonus accrual at month end due to there being multiple sources of KPI metrics together with the fact that any new hire, termination or transfer to a department would require an adjusting journal entry to the accrual balance.

In addition, there was no bonus accrual subledger in place to accurately break out the balance by employee.

The Solution:

We built a customized desktop application which automatically performed the following tasks at the click of a button:

• Ingest KPI metrics from the HR system

• Ingest new hire and termination data from Success Factors

• Ingest the previous accrual balance from the trial balance

• Calculate bonus amounts by employee

• Create a journal entry in the format ready to be uploaded into NetSuite

• Create a subledger showing the breakout of the accrual balance by employee

The Result:

The automation saved the client roughly 10 hours per month end close and also aided with the financial statement audit in the sense that the balance could be reconciled down to the employee level