JSC Ulbinsky steel works

The 1C Rating company completed the considerable block of works on implementation of a subsystem of the cost accounting and cost accounting of finished goods at the JSC Ulbinsky Steel Works enterprise.

The Ulbinsky Steel Works joint-stock company is among the world's largest producers of products from uranium, beryllium and tantalum today. This unique enterprise having more than 60 years' experience of production and deliveries of world-class products. Today as a part of the enterprise:

• the nuclear fuel production, largest in the CIS, for nuclear power;
• the only thing on the Eurasian continent the production which is releasing all types of berilliysoderzhashchy products from draft ingots to finished products.
• the only production of tantalum in the CIS equipped with the powerful modern equipment capable to process any tantalum-niobiysoderzhashchee raw materials;
• powerful research base;
• large design institute;
• the developed infrastructure of auxiliary productions.
  

Within the project of the system of the management reporting (SMR) developed by the National Welfare Fund (NWF) "Samruk-Kazyna" for the national companies to which number JSC Ulbinsky Steel Works belongs at the enterprise the actions plan for 2010-2012 on implementation of SUO was accepted.

Strict requirements to detailing and terms of providing data and inability of the current information system to meet the stated requirements became the main premises of transition to the new automation system to the specified terms.

Staff of the enterprise as a part of division of the Center of information technologies was engaged in development and deployment of the main part of subsystems. As the partner the 1C Rating company which proved as the reliable partner during creation of complex corporate systems with the maximum scope of jobs, including on implementation at the Customer of the previous information system was attracted to implementation of a subsystem of the cost accounting, cost accounting and closing of reporting period.

The "1C: Manufacturing Enterprise Management for Kazakhstan" systems - for automation of the main document flow and "1C: Consolidation" - for development of the reporting became the main instruments of automation.
Within the project the following works were performed:

• Training of key staff of the enterprise is provided.
• On the basis of the provided conceptual settlement scheme of product cost and services the plan of completions is prepared and implemented.
• Test closing on the example of one reporting period which supported confidence in the selected software product is made and also helped to define the further development plan for functionality.
• In the conditions of commercial operation closing of the period is made, within admissible term the necessary reporting is handed over that is confirmation of stable and correct system operation.
  

Thus, within the project the following tasks are solved:

• The quantity the analyst by which costs and cost value are considered is expanded to 12 levels, namely:
• Organization, Division, Account, Cost item, Order, Order for service OS, Nomenclature group, Costs, Characteristic of costs, costs Series, Division source, Nomenclature group source.

This solution allowed to analyze more deeply costs and to accurately understand their nature.

• Two parallel techniques of reflection of costs and cost accounting of the made finished goods, taking into account difficult counter release of internal services of auxiliary productions are implemented:
• By complex cost items – for the internal analysis economical department;
• By primary articles and cost elements – for providing the reporting in management company.
• The element marked spiskas by accounting of multiconversion structure of production is organized cost accounting of the sold finished goods with interpretation to primary materials (level of depth of interpretation is controlled the user), partners suppliers of costs, partners buyers of products for the purpose of identification of intra group turnovers and calculation of final marginal income at the level of management company.
• Within a problem of "fast closing" the possibility of reflection of economic operations on an accrual method which allowed to start closing of reporting period before its actual termination, and for the purpose of control over integrity of accounting data is implemented, necessary tools for tracking and the analysis of similar transactions were implemented.
• Collecting of the reporting is organized, including:
• The possibility of report generation Gross profit (to within divisions, partners and nomenclature positions) which allowed to solve a problem of determination of profitability of sales of finished goods and the rendered services is provided and also in certain cases to perform remedial measures in a part:
• Review of specifications and expense rates;
• Changes of method of calculation of cost value;
• The profit and loss statement with analytical interpretations of all indicators is created. At report generation the system of automatic detection of the code of a line is considered. The realization of the report is enabled within "1C: Consolidation".
• Comparative reports which are the tool for control of correctness reflections of data on registers of accumulation in relation to the data reflected in accounting are created. Thus, the accountant can equally trust as data of a managerial circuit, and accounting, at the same time taking all advantages and conveniences of the first.
• Convenient work with the reports on tax monitoring (MOS) covering specifics of accounting at the enterprise is organized.
  

Since October 1, 2011 a system works in the mode of commercial operation. Already at this stage of implementation by users of a system the staff of all main divisions of the enterprise is, 567 jobs are automated. Now a system is on post-project maintenance and also on support of ITS.

At the moment the bottleneck of the implemented system is high-speed performance, namely a closing time of reporting period which owing to existence of the complex looped production circuit of repartitions, ensuring a large number the analyst and 2 parallel techniques takes considerable time.

According to the project manager from the Customer, the Chief accountant of JSC UMZ, Gorbatyuk Andrey Andreevich:

"It is obvious that in comparison with the previous version of the program, service became much more comfortable: universal reports, a large number of registers, service of work with selections of data in magazines, reference books. I cannot tell what works at someone decreased (perhaps, even increased), but the fact that process of accounting became much more transparent, it is more systematized and we manage – it is unambiguous. Plus great opportunities for expansion of functionality in comparison with the previous version of the program. Concerning cost accounting I can note that within an assigned task (the operating technique) the task is implemented in full. In my opinion, the most essential and desirable to improvement parameter of a system is the closing time of reporting period. For this purpose we plan the next stage of the project on implementation of a technique EACA (Expanded Analytics of the Cost Accounting) which will allow to reduce a closing time, thanks to application of a linear equation system in cost accounting. We hope for successful development of the project and for further effective cooperation with 1C Rating company.