At the airports "Basel Aero" budgeting and purchasing activity are automated

2017: Automation of budgeting and procurement procedures

In January, 2018 the Gendalf company announced end in December, 2017 of the project of process automation of financial control and purchasing activity at the airports "Basel Aero".

Basel Aero airport, Sochi. Photo: avia2.ru

Prerequisites

Basel Aero manages the Sochi Airports, Krasnodar, Anapa and Gelendzhik servicing about 9% of the general passenger traffic of Russia. At the same time the company annually increases a passenger traffic (more than 10 million people in 2017) and perfects internal business processes.

Among the main premises of the project in Basel Aero specified:

• At budgeting at the Microsoft Excel airports did not provide the due level of efficiency, it was subject to risks of emergence of errors and losses of information, had no reliable functionality for control of accomplishment of the budget. Control of the budget for each request passed through approval of the financial and economic department (FED) which employee verified purchase with the data which are stored in Excel.
• When holding procurement procedures there were also no efficiency and reliability. Initiators of purchases and directorate had no potential to quickly keep track of the status on execution of the purchase plan and approval of separate procurement procedures. Process of initiation of purchase took place in e-mail with high risks of loss of information. There were no communications between purchasing documents (the technical specifications, the draft treaty, etc.) and process of a procurement procedure. Process of approval of purchases was inefficient and contained duplicative transactions.
• Starting the new nomenclature and assignment of the budget item by it occurred manually. Initiators sent requests for starting the new nomenclature in the Excel format, and compliance of the nomenclature to the budget item treated as required a separate request in FEO.
• Besides, Microsoft Excel could not be integrated with other accounting systems of the company for the analysis "the plan - the fact-forecast" or to apply to consolidation of the budget and the mechanism of purchases. There was no possibility of operating control of accomplishment of KPI of heads of the centers of the financial responsibility (CFR).

Contractor

As the contractor in project implementation the Gendalf company which was attracted by airport holding "Basel Aero" before Olympic Games 2014 for creation of an end-to-end system of management of four airports on the basis of solutions of 1C acted.

Project Progress

The management system for budgeting and procurement procedures of the airports was created on the basis of the solution "by 1C: Erp.Upravleniye enterprise 2".

The implemented system then was integrated with the available accounting systems of the company, such as "1C: Manufacturing Enterprise Management", "1C: Document Flow" (1S:DO) and SMART. Are synchronized: reference books — elements of reference books of NSI are entered into one of systems and automatically duplicated in the others; documents — the documents entered in one of systems automatically indulge in the others; data — data, necessary for reports, are transferred between systems.

Also between systems there are end-to-end processes. Process of holding a procurement procedure starts in 1C:ERP where the agreement card is created. Further the agreement will be approved in 1S:DO, transferred to 1C: Manufacturing Enterprise Management and comes back to 1C:ERP in the status "Works".

The project of automation based on the program "1C:ERP. Enterprise management 2" in general was changed by process of drawing up budgets and procurement procedures which were conducted in the Microsoft Excel program earlier.

Result

Within the project the management system for budgeting and procurement procedures of four airports in the cities of Sochi, Krasnodar, Anapa and Gelendzhik is created. The information system covered 158 jobs in 39 centers of the financial responsibility among which — the centralized treasury, general management, purchasing department, accounting, department of supply, directorate on personnel, financial and economic department and also command center resources. As a result procurement process became transparent for initiators, the centers of the financial responsibility had an opportunity to manage quickly the budget, to control the status of execution of purchases.

Key project deliverables:

• Data entry of the budget is transferred from Microsoft Excel to 1C:ERP. Now information is entered into the program by specially developed documents, access to data entry is differentiated on roles. Through the statuses of documents mechanisms of approval of the budget are implemented.
• In a system "Business procurement process" on which the request is created and sent is developed. Participants of Business process receive tasks on the desktop. In Business process the stage at which there is a procurement procedure and the responsible is visible. Process is connected with documents of a procurement procedure and also is integrated with "1C: Document Flow" for review of purchase. The route of a procurement procedure depends on differentiation on methods of purchase.
• Process of application for input of the new nomenclature and assignment of compliance by it to the budget item is automated. The initiator creates the request which on Business process is transferred responsible for input of the new nomenclature, and then to FEO for assignment of compliance to the budget item.
• On all process steps the automated budget control is provided. The request cannot be created without existence of the free budget. The amount by orders of the supplier cannot exceed the budget of the agreement. Specially developed reports became the main tools for control of accomplishment of the budget and the purchase plan.
• The report Plan-prognoz-fakt is formed from the data entered by users and data of the fact arriving from accounting programs. The report forms in a necessary section the analyst — the airport, the center of the financial responsibility, cost center, article, the nomenclature.
• The report reflecting the status of budget implementation of purchases of the CFD in the online mode is formed by the centers of the financial responsibility, articles, nomenclatures, etc. On each position it is possible to understand at what stage of execution there is a budget (the plan, the forecast, the unused budget, the agreement for conclusion stages, the agreement is signed on the budget, the budget is selected by orders). The report allows to receive interpretation of each amount and to see by what documents it is created.
• The report reflecting the status of budget implementation of the agreement in the online mode is formed by the CFD and budget items. Under each agreement it is possible to understand what amount is selected and how many makes the free budget on the agreement, i.e. to compare the request and the order.

On a response of the customer if earlier purchasing activity of Basel Aero was controlled a post factum, then according to the results of the project approach became structured. Speed of preparation of management and financial statements, its analysis grew. The management of the airports received tools for control of accomplishment of the budget, assessment of the ability and operational decision making. It, in turn, offered prospects for work with before the KPI system of assessment of work of personnel implemented in Basel Aero and also leads to cost reduction of the enterprise.

According to Artem Baznamin, the head of department of financial statements of Basel Aero, an innovation met expectations: "We received a flexible budgeting system which is without effort integrated with other accounting programs for the analysis "the plan - the fact-forecast". Began to create budgets of PL, CF, CAPEX, BDDS. We approve, if necessary we adjust and we control accomplishment of budgets in 1C:ERP and 1C: DO, having been sure of the accuracy of accounting and reliability of information storage. We made transparent purchasing process and we work on its further optimization".

2014: Accounting system implementation based on 1C: Manufacturing Enterprise Management

On February 4, 2014 the company Gendalf announced project implementation of implementation of an end-to-end system of accounting in Basel Aero on the 1C: Manufacturing Enterprise Management platform.

Project Tasks

As of February 4, 2014 under control of Basel Aero company four airports of Krasnodar Krai work: Krasnodar, Sochi, Gelendzhik and Anapa. Through them annually there pass more than six million passengers and tens of thousands of tons of loads. Preparation for the Winter Olympic Games of 2014 significantly raised load of these enterprises, and during games in Sochi a bigger increase in a passenger traffic is predicted.

Ensuring necessary capacity requires well debugged schedule system of work of services of the airports, special equipment and cars. Operating control of a status of the equipment, timely planning of passing of checkups and repairs, purchase of spare parts and component parts is required. Exact cost accounting of services and control of settlement with suppliers and customers are also important.

Earlier at each airport the information system was used. Planning and control of the current activity of the company were at a loss.

The management of Basel Aero made the decision to create a new information system:

• provide uniform policy of accounting and management at all airports of the company;
• optimize document flow of the enterprise, accelerate processes of approval of agreements, purchase plans and other documents;
• increase the accuracy of cost accounting of services and strengthen control over costs of the enterprise, whenever possible to reduce them;
• optimize work of motor transport and special equipment, to strengthen control of a consumption of fuel and lubricants, to accelerate formation of waybills, to organize effective management of repairs of the equipment;
• to timely prepare the consolidated statements under RAS and IFRS for external and internal use.

Project Progress

As the partner in implementation invited GENDALF company.

For the solution of assigned tasks used software products: 1C: Manufacturing Enterprise Management, 1C: Motor Vehicle Management 8, 1C: Document Flow 8 and 1C: Consolidation 8.

Within 11 months specialists of GENDALF company automated more than 700 jobs in management company and four airports of Krasnodar Krai, executed integration of 1C: Manufacturing Enterprise Management with the system of the organization of flights.

Project Results

Integration of the 1C: Manufacturing Enterprise Management system with the system of the organization of flights helped with operational formation of the list of the services rendered to airlines.

Settlement with customers became more operational. Receivables were reduced. Also settlement with the companies servicing the airports, airlines and passengers in the outsourcing mode became simpler.

Dmitry Altynnik, the director of economics and finance of Basel Aero, told: "The new system constructed on the 1C:Enterprise 8 platform provides notable increase in productivity of work of our company and provides the effective and convenient tools opening new opportunities of development for the airports entering into Basel Aero. A system gave the chance of operational collecting, storage and analysis of production and financial data, helped to increase performing discipline of employees and controllability of business processes. The efficiency of decision making by heads increased".