Kazakh institute of oil and gas (1C Rating: Integrated management of finance and budgeting)

The 1C Rating company completed implementation of an end-to-end information system of accounting on the 1C:Enterprise 8 platform in JSC Kazakh Institute of Oil and Gas and also in four subsidiary companies of this design institute. The new system constructed based on industry solution "1C Rating: Integrated management of finance and budgeting for Kazakhstan", allowed to automate in full accounting, tax and personnel records of the enterprise, to considerably reduce time expenditure at payroll, to increase efficiency of reporting. The implemented system allows to prepare the reporting according to SUO – the System of the Management Reporting implemented by JSC Oil Company KazMunaiGas in affiliated enterprises.

Joint-stock company "Kazakh Institute of Oil and Gas" (JSC King) - one of the leading design institutes of Kazakhstan which main objective of activity is complex scientific and engineering providing oil and gas and electrical power industries of the Republic of Kazakhstan, design of land and offshore constructions of industrial and social function. Subsidiary companies of institute are among:

JSC Kaznipimunaygaz (Aktau);
JSC NIPI Kaspiymunaynaz (Atyrau);
LLP Scientific Research Institute Kaspiymunaygaz (Atyrau);
Naukograd LLP (Almaty).

JSC KING and its subsidiary companies take part in development of the normative legal documents of the Republic of Kazakhstan used in the oil and gas industry and also provide accomplishment, approbation and approval of projects in authorized bodies of RK, carry out expert works.

In 2008 in connection with introduction at the enterprise of new standards of the management reporting (SUO – the System of the management reporting) need of automation of many business processes which are not automated earlier arose. Besides, the accounting systems used at that time based on "1C: Enterprise 7.7" did not satisfy to needs of the Customer. These premises naturally led the management of institute to the decision on need of upgrade of the accounting system.

Already proved partner – 1C Rating company, the relations with which checked themselves time, became the contractor on implementation of a new accounting system – specialists of this company earlier successfully automated accounting in JSC KING using programs of a line "1C: Enterprise 7.7". The choice was stopped on a modern technology platform "1C:Enterprise 8" and configurations "1C Rating: Integrated management of finance and budgeting for Kazakhstan" which allows to solve problems of automation of accounting, tax and personnel accounting in a complex, to execute difficult payrolls and also to manage financial flows and process of budgeting at the enterprise.

The contractor offered not only an end-to-end system of accounting, but also the complex approach to automation considering all necessary components:

• preproject express inspection;
• data transfer from former accounting systems;
• training of employees in work in a new system;
• adaptation of a system under specific requirements of institute;
• consultations of users in workplaces;
• remote maintenance of the accounting system.

Preproject inspection gave the chance even before implementation to reveal the "bottlenecks" connected with specifics of accounting and in connection therewith to make it most satisfying to needs of the Customer. Data transfer from former accounting systems and training of employees allowed to provide transition, comfortable for users, to the new accounting system. In general, complex approach allowed to implement a system in the planned terms and within the approved budget.

Within the project automation of accounting of JSC Kazakh Institute of Oil and Gas and also four subsidiary companies was executed: JSC Kaznipimunaygaz, JSC NIPI Kaspiymunaygaz, Scientific Research Institute Kaspiymunaygaz LLP, Naukograd LLP. All primary partitions of accounting are automated: banking and cash activities, settlings with suppliers and buyers, including settlings with consortia, fixed asset accounting and intangible assets, tax accounting, rendering services of production character. A number of types of payroll by method "from the return", by the projects executed by the staff of the company is implemented, accounting of reserves on a holiday is automated. New subsystems, such as off-balance fixed asset accounting and inventory stocks, automatic calculation of deposit interests and to loans with reflection in accounting, barcoding of fixed assets, accounting for the purpose of financial statements, and other subsystems are developed. A number of the documents and reports connected with specifics of activity of the company is added.

Implementation of an end-to-end system of accounting based on "1C:Enterprise 8" at group of design institutes allowed:

• Increase quality of information and efficiency of its processing thanks to consolidation of all sections of accounting in one system.
• Exercise control of accounting information of affiliated enterprises, perform tuning of uniform policy of accounting and also preparation of the reporting both under all group in general, and on each organization with a possibility of interpretation "before wiring". The present possibility is implemented by means of the mechanism of the distributed information bases at which the consolidated data collection of accounting of subsidiary companies in uniform information base JSC Kazakh Institute of Oil and Gas is organized.
• Prepare the reporting according to SUO for JSC Oil Company KazMunaiGas means of specially developed subsystem "Accounting for the purpose of financial statements". The subsystem allows to reflect accounting data in registration dates of events which often do not match dates of their actual action that allows to estimate accounting indicators until their actual reflection, to monitor accounting changes "backdating" and to provide information connected with these estimates and changes to shareholders.
• Adapt the chart of accounts of accounting for requirements of JSC Oil Company KazMunaiGas by change of accounting reports and thin setup of structure of reference books of accounting analytics. Changes of the chart of accounts in a configuration at the same time were not required that allowed to reduce the volume of changes in a standard configuration and consequently - to reduce costs of the enterprise for the subsequent maintenance of a system in current status.
• Reduce time for carrying out inventory of fixed assets. It became possible thanks to implementation of functionality of fixed asset accounting using the barcoding providing appointment and printing of barcodes for fixed assets and also carrying out automatic inventory by reading of barcodes and loading of read data in information base.

Process of adaptation of personnel of JSC KING working in the new accounting system to "technology new products" took place successfully as results of automation allowed to simplify and accelerate accomplishment of routine actions and difficult calculation tasks. So, for example, settlement process of the salary in a configuration "1C Rating: Integrated management of finance and budgeting for Kazakhstan" significantly accelerated, and, according to the payroll specialist, it was reduced on time by 15 times.

On a withdrawal of the management of JSC KING, the goals of implementation of a new system are completely achieved:

"… implementation of the software product allowed to automate as much as possible accounting transactions that respectively expanded possibilities of workers of accounting for more operational information processing and reporting … There are permanent changes, both in the accounting and tax law, and in a format and contents of the reporting prepared based on activity of the company therefore for receiving relevant and correct accounting, permanent changes and completions of the information system used in the course of accounting are necessary. In the matter our company entirely can rely on specialists of 1C Rating LLP.