Lucanet AG is a global supplier delivering one-stop consulting, software and implementation services for group financial control. Founded in the early 1990s and headquartered in Berlin, Germany, Lucanet has grown over nearly 30 years with customers across the globe. It maintains branch offices in key markets including Europe, North America, Southeast Asia and Greater China. In BARC’s comprehensive survey for management accounting software, Lucanet has been awarded “Market Leader” for many consecutive years. 

Gartner, a renowned global research firm, has recognized Lucanet as an international software vendor in its Market Guide for Management Accounting Software.The Lucanet system features high standardization, intelligence and model-driven design. It integrates complex financial logic with business intelligence technology to address multiple challenges in management accounting. Drawing on its decades-long expertise in group financial control and consulting experience serving numerous global group enterprises over nearly 30 years, Lucanet has evolved into a group financial control platform integrating multi-system data consolidation, automated report generation, complex consolidation reporting, multi-dimensional data analysis, comprehensive budget management, business intelligence and ESG reporting. It serves as a trusted CFO Solution Platform.Lucanet Financial Consulting (Shanghai) Co., Ltd. (Lucanet China) is the local subsidiary of Lucanet AG responsible for business across mainland China, Hong Kong, Macao and Taiwan. 

Headquartered in Shanghai, Lucanet China has additional offices in Beijing and Shenzhen. Combining Lucanet’s product philosophy with the characteristics and practical demands of local enterprises, Lucanet China introduces world-class financial management best practices for implementation within Chinese organizations. Committed to localized product adaptation, on-site implementation and local after-sales support, together with nationwide ecosystem partners, Lucanet China delivers consistent, high-quality localized services to hundreds of domestic enterprises across regions and industries. Lucanet China actively responds to national information security requirements and fully supports domestic IT innovation infrastructure.

Lucanet China is also an accredited employer for multiple international finance and accounting associations including ACCA and CIMA, and has established partnerships with many universities at home and abroad. It strives to foster the development of senior finance and accounting professionals. “Professionalism and continuous pursuit of excellence” forms the foundation of Lucanet’s development in the digital management accounting sector in China, while “continuous innovation” serves as the strategic guideline for Lucanet China as a knowledge and technology-intensive enterprise.

Customer Case Study: HY Group

Customer Background

Founded in the 1950s, HY Group is a time-honored enterprise in the air separation equipment and industrial gas industry. It developed China’s first set of air separation equipment and has long maintained world-class technological standards in the domestic air separation sector.

In recent years, with the continuous expansion of the Group’s industrial scale, the number of off-site subsidiaries and the scale of commissioned fixed assets have grown steadily. This has significantly increased the complexity of group financial management and raised operational risks. The traditional manual-based workflow of data collection, sorting and offsetting can no longer meet external regulatory requirements and internal management analysis needs.

Construction and Application of the Consolidated Statement Platform

Without large-scale modifications to the existing ERP system settings, Lucanet adopts mature information technologies including relational databases, in-memory databases and OLAP (Online Analytical Processing). Integrated with the Group’s financial management system, the platform realizes standardized, data-driven and streamlined full-process management, covering business systems, financial systems, consolidated statement generation and financial result presentation. It eliminates information silos, unblocks process bottlenecks in consolidation procedures, and smooths information circulation for financial disclosure.

Taking ERP systems, capital management systems, bill management systems and offline spreadsheets as data sources, HY Group’s consolidated statement platform integrates business and financial data via relational databases, builds consolidation models in in-memory databases to realize automatic offsetting, and visually presents the entire consolidation process and final results online. The core functions of the platform are detailed as follows:

1. Optimized Data Collection and Integrated Financial Master Data

The primary objective of platform construction is data integration, which extracts all business and financial data related to consolidated statement preparation from front-end business and financial systems. The platform integrates valid data from the Group’s ERP, capital management and bill management systems to support financial consolidation.

The Group’s original ERP system adopts independent account tables for different legal entities, with obvious discrepancies in account hierarchy and control account settings. To unify fragmented master data, the platform develops dedicated data interfaces to extract background data from the ERP system, and standardizes scattered account tables through intelligent mapping and classification during data transmission.

It implements differentiated management of existing and incremental financial master data to form unified group-level master data standards. Based on standardized master data, the platform extracts voucher-level data from the ERP system and generates account balance sheets through chronological ledger aggregation.

2. Solved Pain Points of Reconciliation Difficulty, Untraceable Differences and Unstatutable Results

Traditional consolidated statement management faces three core reconciliation challenges: inconsistent reconciliation standards, untraceable reconciliation discrepancies, and unquantifiable reconciliation progress and results. Lucanet rebuilds the Group’s affiliated party reconciliation model through two major optimizations:

First, a dedicated reconciliation module is built in the platform to support hierarchical verification of business and financial data. The system automatically executes preliminary data matching; consistent data is automatically approved, while inconsistent data triggers manual inspection prompts. Finance teams can verify data at the statement level directly within the module. If discrepancies remain unresolved, the system supports drill-down verification of detailed ledgers without switching back to the ERP system. For persistent exceptions, the platform further penetrates into underlying business data for cross-verification.

Second, the reconciliation workflow is restructured for standardized monthly management. On the 25th of each month, the platform automatically captures full-cycle business and financial data from all connected systems to initiate pre-reconciliation and resolve discrepancies in a timely manner. Before month-end closing, the system re-verifies business and financial data of the last five working days, completes final discrepancy adjustments, and confirms account closing. This mechanism avoids concentrated reconciliation workloads before month-end closing and achieves balanced and efficient daily reconciliation management.

3. Automatic Generation of Consolidated Offset Entries

The platform’s consolidated offset function is the comprehensive embodiment of all core capabilities. HY Group has configured four major offset templates in the system, among which internal creditor’s rights and debt offsetting, internal transaction offsetting, and long-term equity investment and subsidiary equity offsetting are the most critical:

Internal Creditor’s Rights and Debt Offsetting: The system identifies affiliated party information from financial master data and trading partner data from the ERP system. Combined with verified reconciliation results and reclassification entries, it generates highly accurate offsetting data automatically.

Internal Transaction Offsetting: Adopting a similar data extraction logic, this template addresses the issue that cost and expense accounts rarely carry auxiliary accounting information during bookkeeping. It realizes accurate offsetting of affiliated party transactions through customized gross profit rate configuration.

Long-term Equity Investment and Subsidiary Equity Offsetting: The platform supports two offsetting modes: simulated equity method and cost method. In compliance with accounting standards and the Group’s long-term management practices, HY Group adopts the simulated equity method. The system automatically verifies and correlates multi-dimensional data to complete intelligent offsetting.

All four offsetting templates are solidified in the platform. Monthly consolidated offset entries can be automatically generated by following standardized operation procedures, greatly improving consolidation efficiency and accuracy.

4. Enhanced Information Disclosure with One-click Distribution

To meet strict regulatory requirements, the platform builds two core functions for standardized information disclosure:

Linked Main and Schedules: After the completion of consolidated offsetting, over 80% of financial statement notes and SASAC-standard statistical reports can be automatically generated. Any modification to main statement data will trigger synchronous updates of supporting notes, ensuring data consistency.

Configurable Report Generation: In response to updates of Accounting Standards for Business Enterprises and changes in regulatory calibers, the platform supports flexible configuration of report formats. The Group can complete group-wide report template updates and realize one-click batch distribution with minimal manual operation.