Inteco, Ltd (1C: Consolidation)

For the leading Russian company in the field of construction, the real estate and petrochemistry of Inteco the Portal of Reconciliation of VGO system based on "1C: Consolidation" is developed and implemented.

As a result of system implementation labor costs on execution of operations of reconciliation of intra group calculations of the company decreased and also terms of preparation of the individual and consolidated statements were reduced.

Problems of implementation

To system implementation specialists of the company spent a lot of time for check and the confirmation of correctness of a remaining balance and turnovers on transactions between partners which are child or dependent on the relation to each other. It became clear that VGO are presented in the entering reports of the enterprises of group in the different amounts or at one of the enterprises this turnover is specified as internal, and this fact did not find reflection in the reporting of other company.

When using standard opportunities of the MS Excel reconciliation represented the labor-consuming and long processing of data requiring elimination of the reasons established discrepancies. All these problems led company management to the solution of creation of such system using which it would be possible:

• avoid discrepancy in accounting of the enterprises of group;
• as much as possible to automate and optimize process of reconciliation of VGO.

The project started in November, 2012 and consisted of two main stages.

Stage "Integration"

At the stage "Integration" data loading on VGO was performed.

At data loading for reconciliation of VGO the following blocks of reports were selected:

• VGO (debit / accounts payable). Regarding reconciliation of account transactions of accounting of debt between the companies of Group a remaining balance is checked for the beginning and the end of reporting period (as for the period, and the accruing result since the beginning of year) and also turnovers for the period of check.
• VGO (receipts and payments). Inflows and cash outflows on Group for a certain period are subject to reconciliation.
• VGO (income/expenses) are subject to Reconciliation the amounts of turnovers (income and expenses excluding VAT, excises, etc.) for a certain period.

Stage "Reconciliation of VGO"

Reconciliation of VGO is the necessary control procedure which is required for a correct exception of intra group turnovers at consolidation.

Reconciliation of intra group turnovers was carried out on the VGO portal on the basis of information loaded by the companies of group into a system. The purpose – to make sure that all consolidated companies recognized commission of these or those intra group transactions in the identical amounts and the identical periods. The turnovers and remaining balance reflected by each couple of the companies of group in the stage "Integration" are subject to reconciliation.

Results

The project came to the end in April, 2013. As a result of system implementation of VGO Portal all companies of Group entering consolidation perimeter had an opportunity to jointly verify VGO in real time.

Upon termination of works such tasks as were implemented:

• uniform data storage on VGO;
• data loading from the accounting systems;
• setup of the main process steps of reconciliation of VGO;
• formation of reconciliation statements;
• reporting.

Thus, creation of a new automated system provided to Inteco Group a successful completion of a financial period and the reduced terms of formation of the consolidated statements.