How BAGCORP Unified Dual-Currency Financial Operations Across 3 Plants with D365 Finance

LocationMexico

SolutionD365 Finance & Operations

Plants on one D365 instance

67%

Faster financial close (8 days → 2.6 days)

100%

SAT CFDI e-invoicing compliant

At-a-Glance

BAGCORP - a Mexican packaging manufacturer operating 3 production plants and selling to both domestic and US export markets.

Case Study

CHALLENGE:

Three plants on separate legacy systems meant an 8-business-day manual month-end close process, with the CFO team manually consolidating MXN and USD figures in Excel.

SOLUTION:

Intelegain deployed D365 Finance with inter-company consolidation, dual-currency MXN/USD automation, SAT CFDI e-invoicing, and 2 years of migrated manufacturing cost history.

RESULTS:

Financial close cut from 8 days to 2.6 days (67% faster), 3 plants on one D365 instance, full SAT compliance, automated MXN/USD consolidation.

The Challenge: Eight Days to Close, Every Month

BAGCORP runs three packaging production plants across Mexico, serving a customer base split between domestic MXN-invoiced clients and US export accounts billed in USD. It's a commercially successful dual-market model - but their financial infrastructure hadn't kept pace with the business.

Each plant operated on its own standalone legacy system, with no shared chart of accounts, no real-time interplant visibility, and no automated currency conversion. At month-end, BAGCORP's CFO team executed a manual consolidation process that had become the most dreaded eight days of the finance calendar. Staff pulled transaction exports from each system, manually applied exchange rates sourced from the SAT portal, and stitched together a combined P&L in a multi-tab Excel workbook.

By the time leadership received the consolidated figures, they were already 8 business days old. In a manufacturing business where material costs and USD/MXN exchange rates move daily, that lag made the P&L a historical artifact rather than a management tool.

8-day manual close cycle

- the CFO team's capacity was consumed by consolidation work rather than analysis

Three separate legacy systems

with no shared master data, producing irreconcilable account naming conventions across plants

Manual MXN/USD conversion

using exchange rates sourced at a single point in time, introducing timing inaccuracies into intercompany eliminations

No real-time plant-level P&L

- individual plant performance could only be assessed after the 8-day close, not during the month

SAT CFDI compliance risk

- Mexico's electronic invoicing mandates were being met through a third-party bolt-on that regularly produced CFDI errors requiring manual correction

Why BAGCORP Chose Intelegain

BAGCORP's finance leadership needed a Microsoft partner with specific depth in Mexico's tax environment - not a generalist who would treat SAT compliance as a post-implementation add-on. Three criteria dominated their evaluation.

Mexico SAT tax compliance configuration:

Mexico's SAT imposes specific technical requirements for CFDI electronic invoicing, including XML schema validation, digital stamps (sellos digitales), and PAC (Proveedor Autorizado de Certificación) integration. Intelegain's team had configured SAT-compliant CFDI workflows in D365 for Mexican manufacturers before - BAGCORP wasn't a first attempt.

Dual-currency manufacturing ERP expertise:

The MXN/USD consolidation requirement wasn't just a ledger configuration - it required interplant cost allocation logic that correctly handled goods transferred between plants at internal transfer prices in a mixed-currency environment. Intelegain demonstrated this capability during the evaluation with a working configuration example.

Inter-company consolidation methodology:

Bringing 3 plants onto a single D365 instance while preserving plant-level cost visibility required a clear legal entity and business unit structure. Intelegain presented a documented architecture that addressed BAGCORP's specific plant-level reporting needs before the contract was signed.

Implementation: The Intelegain Approach

The implementation ran in three structured phases, with data migration happening in parallel to configuration work to avoid compressing the timeline. BAGCORP's finance team participated in weekly configuration reviews throughout, which shortened UAT by eliminating late-stage surprises.

Phase 1: Legal Entity Architecture & Chart of Accounts Harmonisation

Designed the three-entity legal structure in D365 - one entity per plant - with a consolidation company for combined reporting. Harmonised the chart of accounts across all three plants, mapping each legacy account to a standardised D365 account. Configured AED primary and USD secondary ledger books with live exchange rate feed integration from SAT's published daily rates. This phase was the foundation everything else depended on, and it consumed the most negotiation time with BAGCORP's controllers.

Phase 2: SAT CFDI Build, Interplant Cost Allocation & Data Migration

Configured SAT-compliant CFDI electronic invoicing with PAC integration for digital stamp issuance. Built interplant goods transfer workflows with automated cost allocation across the three plant entities. Migrated 2 years of manufacturing cost history from all three legacy systems into the consolidated D365 environment - a dataset covering over 50,000+ line-item transactions. Automated MXN/USD exchange rate application at the transaction level, eliminating the manual conversion step from the close process.

Phase 3: UAT, Parallel Close Run & Go-Live

Ran a full parallel close with BAGCORP's finance team - executing the month-end close simultaneously in both the legacy systems and D365 Finance to validate output consistency. The parallel run identified four configuration adjustments in interplant elimination entries. After corrections, the D365 close ran to completion in 2.4 days against the legacy system's 8 days for the same period. Go-live followed the parallel run confirmation.

D365 Finance & OperationsSAT CFDI E-InvoicingMXN/USD Dual LedgerInter-company ConsolidationManufacturing Cost AllocationLegacy Data Migration

Measurable Results

Manufacturing plants unified on a single D365 instance

67%

Faster financial close - from 8 business days to 2.6

100%

SAT CFDI electronic invoicing compliance from go-live

Real-time

Plant-level P&L visibility - no waiting for month-end

Multi-plant consolidation taking too long?

If your month-end close is measured in days rather than hours, Intelegain's D365 Finance implementations are built to change that. We've done it for manufacturers across Latin America and can do it for you.

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