Why Rockwool counts money in SAP, and personnel – in AX?

In June, 2012 Rockwool-Russia was announced project completion on migration on the new HRM platform. As told TAdviser in the press service of the Columbus company which acted in this project as the system integrator during the project of Rockwool the system of personnel records and payroll based on Microsoft Dynamics AX was implemented.

Prerequisites of the Project

Till 2009 payroll in Rockwool-Russia for workers was performed in the Concorde XAL system, and for ITR the external company was engaged in calculation. It led to big time expenditure and decrease in level of accuracy of the information, said in official release about project completion.

In it it is told that a lot of time left also on redata validation, received in the different systems. The design data obtained from the external company were loaded into Concorde XAL for formation of accounting entries and into Cognos BI – for preparation of analytical data within the management reporting. All this did not allow to provide employees with necessary references quickly.

At that time the Rockwool-Russia group included two plants located in Railway the Moscow region and in Vyborg of the Leningrad Region with a total number more than 1000 people. In the conditions of the growing business this model of calculation required changes.

Choosing a Solution

It is interesting that the main accounting system of Rockwool is not Dynamics AX, but SAP at all. SAP ERP came to replacement of old Concorde XAL in 2007, then a choice for benefit of SAP was made according to the international corporate standards, representatives of integrator told TAdviser.

During the choice of a new HRM system representatives of Rockwool except SAP considered also systems 1C, Scala both Microsoft Dynamics AX, and a choice eventually was made for benefit of the last.

Rockwool drew a conclusion that to consider salary and the personnel in AX it will be much more profitable, than in corporate SAP ERP

Project Results

On the new Microsoft Dynamics AX platform personnel office-work in Rockwool, payroll calculation taking into account different allowances and social payments and also preparation of the management reporting, reports in bodies of statistics, reporting under the PIT and in off-budget funds for all plants is conducted on a centralized basis in a new system now. The share of manual transactions is minimized.

Information on the staff of the company are entered in the single database of personnel. Procedures of personnel records and payroll are unified on all plants of the company. Charge and salary payment is performed according to sheets of the summed-up working time taking into account holiday, hospital, traveling, advance payments, awards and compensations, tax deductions.

Updating of the version of a system

In 2011 the management of Rockwool-Russia decided to upgrade to the new version of Microsoft Dynamics AX, and since January, 2012 this project was performed. By this moment the producer of nonflammable isolation opened two more plants – in Troitsk (Chelyabinsk region) and Yelabuga (Republic of Tatarstan). Now in the Russian division of Rockwool company more than 2000 employees work.

The project of transfer to the new version of a system lasted about 2 months and allowed the company to use the regular updates released by Microsoft company on changes in the legislation and new systems capabilities.

Financial information

Total number of users of a system is 25 people.

Data on implementation cost are not disclosed.