Lukoil implemented the automation system of processing of accounts

On March 6, 2014 the press service of the Lukoil Group announced end of "pilot" project phase of system implementation of Basware Invoice Automation - automation of processing of the entering supplier accounts on payment, in the specialized organization of the Lukoil Group in Prague – Lukoil Accounting and Finance Europe s.r.o company. (LAFE).

Project Tasks

The Department of methodology of financial accounting the JSC "LUKOIL" implementing in the Lukoil Group the global internal project of creation of the Accounting Regional Centers (ARC) for the purpose of reduction in cost of internal processes of Group by means of centralization and internal outsourcing (insourcing) of accounting function acted as the project orderer of implementation of Basware Invoice Automation.

Purpose of implementation of Basware Invoice Automation:

• unification, centralization and increase in efficiency of the organization of processing of the entering invoices for payment (invoicing) coming to the addresses of tens of subsidiary companies of the Lukoil Group in the different European countries
• "seamless" integration of processing of the entering accounts into the existing IT landscape of the subsidiary companies of the Lukoil Group involved in the project,
• decrease in labor input and cost value of accounting processes of section of settling with suppliers and contractors.

A choice of Basware Invoice Automation as the platform of project implementation was made by Lukoil company within the competitive procedure on the basis of key criteria:

• completeness of compliance of functional and architectural opportunities of the solution Basware to basic requirements to an automated system of processing of the entering invoices for payment (LAFE);
• scalability of the solution on a large number of geographically (territorially) distributed legal entities in the different countries and multilingualism of the solution;
• existence of ready mechanisms of solution integration with the existing accounting systems (in this case, SAP);
• possibility of outsourcing (moving to "cloud") of functions of optical recognition, information extraction from primary documents and its input in a system;
• ratio "result/cost" of an implementation project of the solution.

Project Progress

As the consultant when choosing the IT platform for the project the Pba Consult company acted. The company also carried out administration of an implementation project of Basware Invoice Automation to Lukoil Accounting and Finance Europe s.r.o. (LAFE). The project was executed by Basware company.

The project of automation - the first implementation project of Basware Invoice Automation in one of the largest Russian companies.

Project Results

In a project deliverable:

• for the enterprises of the Lukoil Group already of 5 European countries (the Czech Republic, Slovakia, Poland, Hungary, Belgium) specialists of LAFE execute the unified, centralized and automated process of registration and processing of the entering supplier accounts on payment,
• the number on a centralized basis of the processed invoices for payment reached the level of 80 thousand - 90 thousand pieces/year, its increase up to 200 thousand pieces a year due to further process optimization, increase in a share of the accounts which are automatically compared with orders and decrease in the general labor input of their processing is planned,
• infrastructure for automatic receiving by the European affiliated enterprises the Lukoil Group of invoices for payment from suppliers in the electronic (e-invoices) form which is widely adopted more and more and legislative support in Europe is created.