The international Airport "Ufa" implemented the Lexema ERP system

Prerequisites of the Project

JSC International Airport Ufa - one of the largest airports of the Volga Federal District connecting by aerial lines dozens of the cities of the Russian Federation, the CIS countries and foreign countries. The enterprise constantly develops and improving t the activities for service of airlines, transportation of passengers, baggage and loads.

In 2009 according to the strategic plan of development the decision on system implementation of budget management, for the purpose of regulation of expenses of the enterprise for receiving the certain target indicators set by the owner was made. The circle of solvable problems of a budgeting system had to include planning, regulation and control of execution of the key financial and economic parameters of the enterprise, such as income, expenses, profit and need for money.

JSC International Airport Ufa keeps accounting in a system Lexema.

The enterprise management system includes:

• Accounting of agreements
• Bank, Kass, bill of exchange
• Drawing of accounts, statement of acts, invoices
• Setup of integration with BOSS, with the Client bank,
• Inventory control
• Accounting creditor / receivables
• Settlings with advance holders
• Purchase ledger, sales ledger
• Accounting of fuel and lubricants
• Accounting of overalls
• Generation OLAP- servers creation of multidimensional analyses
• Fixed asset accounting
• Accounting of currency transactions
• Cost value calculation
• Drawing of invoices, the cash module on hotel
• Drawing of invoices, the cash module on travel agency
• Integration into databases on electricity metering, gas, communication
• Tax accounting
• Ledger
• Accounting in motor transport service. Accounting of permits, flow calculation of fuel on regulations
• Accounting of the movement of forms of the strict accounting
• Financial planning
• Forms of accounting records
• Coordination with the system of schedules
• Control of performing discipline
• Tax accounting

The decision was made that it is reasonable to keep budget planning and management accounting in the same software product.

Project Progress

For work on the project the command consisting of top managers, specialists of financial and economic and information and technical divisions of the airport and developers of Lexema – the specialists EcoSoft who are closely cooperating for achievement of a common goal was created. The following tasks were set for project participants: formation of annual budgets (income and expenses (income and expense budget), cash flow (BDDS), plans of purchase, the capital investments), monthly requirements planning in money, control and the analysis of execution of plans, creation of a planned balance.

At that moment the problem of control and regulation of expenses of the enterprise, preserving of profitability and solvency very much was particularly acute. First of all the mechanism was necessary for effective management of a cash flow of the movement which would allow to estimate requirements of services for money and also possibilities of the enterprise. Creation of the payment schedule for a month, i.e. the schedule of cash receipts on the checking account or in cash desk and graphics of a funds expenditure, solved this problem. The centers of the financial responsibility create requests for payment for the next month in which they reflect planned requirement in money, and will approve them in an electronic document management system. At a monthly meeting of budget committee, according to a planned balance in cash and the plan of receipts, the planned budget for the month created from requests of divisions affirms. At emergence of unplanned need for money in current month, the adjusting request which also undergoes approval in an electronic document management system is created. The decision on a statement or a rejection of this request is accepted by individually responsible person at the final stage of a route. The memo on the basis of which the payment order forms without fail refers to the approved plan, and the amount of all memos according to one request should not exceed planned.

Development and deployment of a budgeting system began with this module as it is clear to all users and allows at rather small costs in short terms to gain considerable effects, such as anticipation of cash gaps, selection of priority and minor expenses, financial discipline at the enterprise. All this provides to the enterprise financial stability and solvency.

Creation of annual budget plans was the second stage of system implementation. At the enterprise there was an experiment on planning of an income and expense budget which formed on the basis of requests of the divisions provided on paper carrier and also according to the statistics last years. On the basis of this plan BDDS was prepared. There was an idea to connect all budgets relating to one business process in one request. For example, the request for services contains diagrams of write-off of costs and money transfer to the contractor. In a short time the different types of annual requisitions corresponding to business processes of the enterprise were developed. All requests are registered in a system the centers of the financial responsibility and after approval on electronic document management are considered and affirm at a meeting of budget committee. The interface for the approval of the budget displays the key financial and economic indicators (income, expenses, profit, a balance in cash on the checking account) which change in an interactive mode at a statement or a rejection of requests.

In 2010 the reduced model of the budget was started to check the idea of similar model. In order that there was an opportunity, but not illusion of management of budgets, in all actual documents exclusive references on the annual plan, control of exceeding of the amounts and also compliance the analyst according to the plan and to the fact are configured. For operational making changes in budgets the adjustment mechanism is used. Adjustment looks as the normal request, but has an additional possibility of write-off of the approved amounts from other requests, transfer of the planned amounts from month to month, increase in the budget for one article, group of material due to reduction on another. Approval and the adoption of each adjustment takes place individually according to a document flow route.

The system of monthly planning of BDDS existing at that time was also adapted for the system of annual budgeting. Now all requests for payment in Lexema without fail refer to annual requisitions, exceeding of the amounts is controlled.

2010 showed that this system is viable. By the time of formation of the plan for 2011 a system actively developed. The budgeting system is complemented with planning of the capital investments, purchase and a remaining balance of materials in warehouses, the system of limitation of an income and expense budget under the articles is developed. The automated calculation of the plan of the main taxes of the enterprise (the VAT and income tax) on the basis of the approved requests is added to a form of an approval of the budget.

On the basis of each request postings in a planned balance with an indicator Plan automatically form. The actual documents are given postings in balance in the same chart of accounts and with the same analysts, but with an indicator Fact. On the basis of the magazine of planned and actual postings the turnover balance sheet, the profit and loss statement, the planned balance sheet and other planned and plan-fact analytical forms in any cuts forms.

The analytical form "Plan-fact Analysis" is developed. It displays different budgets (annual, quarter and operational) and contains the automated financial model which can be under construction on the basis of planned, actual amounts in any cuts. "The plan-fact analysis" helps top mendzheram and to specialists of financial and economic services with acceptance of management decisions.

Project Results

Thus, in 2011 in JSC International Airport Ufa the full-fledged system of budget management meeting basic needs of the enterprise was created. Thanks to budgeting system implementation, the financial discipline of the enterprise increased, business became more "transparent" for the management and also there was a possibility of operational regulation of requirements of the enterprise for achievement of the certain values of profit approved by owners.