FGC UES automated accounting of revenue on SAP together with Skyrise

Customer

the network company - the Russian energy company rendering services in electric power transmission in the Uniform National Power Grid (UNPG). About 50% of all energy consumption of Russia are provided at the expense of the electric power transferred on FGC UES networks. The company wins first place in the world on the extent of transmission lines (132.3 thousand km) and the transformer capacity (332.5 thousand MVA) among the public electric grid companies.

Project Objectives

Implementation of the automated approach on accounting of revenue in natural monopoly in the field of services in transfer of electrical energy.

Project Task

According to requirements of the Government of the Russian Federation for accounting of income and expenses by subjects of natural monopolies in the field of services in transfer of electrical energy and supervisory control in power industry, it was necessary to resolve issues on:

• Implementations of the methodological principles of separation of services in electric power transmission into services in transfer and services in compensation of technical losses;
• To accounting of separation of results of activity of the company by the subjects of the Russian Federation.

For the purpose of implementation of transparent revenue management the decision on restructuring of accounting in a part was made:

• Activity-based accounting
• Accounting on market segments
• Accounting on geographical regions

As key task served expansion of an analytical section of data of internal accounting, review and reconsideration of the current processes of accounting and the reporting. On the basis of the received results formulation of additional requirements to accounting and the reporting and formation of a single system of the reporting, with a possibility of its further expansion became possible.

Choosing a Solution

For the choice of the contractor FGC UES held an open competition. During the open competition the Skyrise company was recognized the winner. Experience of Skyrise company in the projects connected with financial accounting as on the party of the Russian, and international companies served as a key factor of the choice. The solution had to be implemented on the SAP ERP platform which is used in FGC UES as the corporate standard.

The project team was faced by not a simple task: implement the solution, without having affected the current operating activities of the company. Exclude the risks connected with failure providing the reporting under RAS and to IFRS. As much as possible to specify the current monitoring of activity of Federal Grid Company. Coordinate a project work with carrying out the current credit ratings of three leading international rating agencies — Moody’s, Standard & Poor’s and Fitch Ratings.

Project Steps

The project on development of a summary technique of planning, resource providing, the organization and accounting of execution of works with an economic method within investment activities of JSC FGC UES was concentrated on development of the methodical installations allowing to fulfill, on the one hand, the requirements of the regulating documents regulating execution of works by an economic method within investment activities, and on the other hand - to consider practical experience of JSC FGC UES in implementation of this type of activity.

The project definition phase was concentrated at priority work on implementation and updating of a summary technique of planning, resource providing, the organization and accounting of execution of works as an economic method within investment activities of JSC FGC UES.

During a design stage project documents, including the Conceptual project and project solutions in which the developed approaches to implementation of the requirements of a summary technique to reflection of works fulfilled within investment activities by an economic method were recorded were developed.

During a stage of implementation specifications on the basis of which the programs implementing required recalculations of costs and providing a user-friendly interface of the user were created were developed.

During a stage of trial operation the functionality of programs was tested and finished taking into account notes of users.

Results

During the project consultants of Skyrise performed implementation of standard functionality Controlling, developed a summary technique of resource providing, the organization and accounting of execution of works with an economic method within investment activities of JSC FGC UES, implemented the functionality required by a technique according to the cost accounting and also executed expansion of this functionality in the form of the developments allowing to simplify as much as possible work of end users in the SAP ERP system.

Important result: FGC UES had an opportunity to consider and distribute personnel attraction costs from the operational sphere on implementation of priority investment projects. Thanks to project implementation users had an opportunity to reflect in the system of work, performed by an economic method within investment activities and to consider the cost of these works on objects of investment activities.

Shortly about results:

• Accounting of revenue and an other income in JSC FGC by the uniform principles at the level of 75 regions of the Russian Federation is implemented
• Accounting principles of separate accounting for reports on the level of executive authorities of the Russian Federation and territorial subjects of the Russian Federation in the field of state regulation of rates are implemented.