Kazan City Telephone Network

On a wave of active growth of telecom industry there was one of important events in the history of the company. In 2006 JSC Kazanskaya gorodskaya telefonnaya set was attached to JSC Tattelecom. Consolidation of assets of two largest operators of wire fixed connection of the republic became an important step on the way of successful implementation of long-term strategy of increase in capitalization and investment attractiveness of Society. The correctness and timeliness of the decision on consolidation of operators made by the Government of RT is confirmed by results of its activity.

Development of the companies and process of integration of telecom operators required review of the mechanism of management. Effectively to direct the growing enterprise, it is necessary to see business in a complex, to quickly keep track of profitability of the developing directions. Increase in efficiency and coordination of actions of structural divisions required use of unified information environment. Thus, creation of a single managing system in which all range of control functions, including accounting and tax accounting, personnel management would be implemented was required. Being guided by business needs, the management made the decision to implement the ERP system.

When choosing a system, certainly, the fact of accession to JSC Tattelecom of JSC KGTS company as integration processes are reflected in mechanisms of management, methods of solving of tasks of accounting and budgeting was taken into account. Problems of consolidation mean use of uniform control techniques and the unified information system.

In September, 2003 the Ministry of Communications of the Republic of Tatarstan together with heads of JSC Kazanskaya GTS and JSC Tattelecom announced the tender. In its framework the systems of the Russian and foreign developers were considered, and part in it was taken by both the capital, and regional companies which are engaged in implementation of ERP systems. As a result of the tender the industry solution based on the Microsoft Axapta 3.0. system developed by AND Project company was selected.

This solution is intended for management of financial and economic activity of telecommunication companies and large telecommunication holdings and includes the accounting and tax accounting and the reporting expanded contractual accounting, expanded registration of personnel, budgeting, the flexible tool for allocation of costs and the financial management reporting. In it features of the industry are considered that allows to create really effective an end-to-end system of company management.

A number of functions in financial accounting of any telecommunication company, for example, allocation of costs, are difficult implemented. The automated accounting system used in KGTS did not allow to perform qualitatively this procedure because of the insufficient level of analytical support. In turn, the lack of this procedure did not allow to estimate cost value of the provided services objectively. The necessary module was implemented in the implemented ERP system. It allowed to automate completely the procedure of the "poprotsessny" cost accounting that gives the chance to calculate cost value by each service. The module allows to create any templates of allocation of costs, using the treelike reference book of parameters (natural indicators). The user can describe allocation bases in the form of formulas in which reference book indicators act as elements. The possibility of setup of accounts of write-off and accounts of appointment allows to calculate the sum which is subject to write-off for some accounts, and to write off this amount – from others. At the same time it is possible to distribute the amounts not just into the account, and in a proportion on its analytical cuts. Result of implementation of this functionality – transparency of costs by each service and an opportunity to pursue reasonable tariff policy.

One more feature of telecommunication ompaniye is shown in business processes of budgeting and planning. Telecom operators, as a rule, plan the activity for the long periods (year and more). A planning tool in telecommunication companies is budgeting. The procedure of creation of the budget in this case becomes complicated the fact that budgets include a large number of cost items. According to the planning technique developed in Kazan GTS company, during the project the specialized module of budgeting which is a part of industry telecommunication solution of AND Project company was implemented. The module allows to create budgets of the enterprise with any quantity of the nesting levels, providing distribution of the budget as "from top to down", and "from below up". Besides, using this module it is possible to perform plan-fact variance analysis. When planning the budget natural indicators can be used. The module will give the chance to conduct budgeting as on the basis of planning of income and expenses (income and expense budget), and a cash method (BDDS): create budgets, control their execution on the centers of the financial responsibility and also on budget investment programs.

Creation of a new management system of JSC KGTS began fall of 2003 and took place step by step. At the first stage specialists of AND Project began inspection of the enterprise and the analysis of the business processes which are subject to automation, and in parallel implemented the module "Fixed asset accounting". On the next stage there took place development, setup and testing of prototypes of a system for KGTS. This stage took 5 months of work of a project team and was complete in May, 2004. Legacy data were during this time prepared and transferred to a system, user training is provided. In June, 2004 in a new ERP system the trial balance for the first half of the year was prepared. And since July a new system began to be used as the only instrument of accounting and tax accounting. Along with system implementation of management of finance, since May, 2004, "scope of work" extended due to adding of automation of registration of personnel and the salary and also implementation of the module "Budgeting". Implementing solution was complete in the fall of 2004. And since the beginning of 2005 a system passed into a support stage. Thus, less than in a year the full-scale ERP solution was developed, unrolled and brought into commercial operation.

As a result, implementation of a technique of budgeting allowed to create and monitor accomplishment of the income and expenditure budget using special tools of management of finance and fixed assets of the enterprise. The "poprotsessny" cost accounting with an opportunity to estimate cost value by each provided service is put into operation. Automation of accounting of fixed assets gave to the company the chance to automatically calculate the VAT on the capital investments put into operation.

2010 was marked by the beginning of the new stage ERP systems in Tattelecom company. For growth strategy maintenance company management the decision on upgrade of the used information system Microsoft Axapta 3.0 is made. Different options were considered, and after the careful analysis the decision on transition to the new version of the ERP system of Microsoft Dynamics AX 2009 was made.

For benefit of transition to the new version results of use of the ERP system of Microsoft for several years acted. The end-to-end system of resource management Tattelecom - in which, in total, works about 300 users - meets all requirements of the Russian and international legislation. The project of transition to the new version and development of a system was entrusted the partner who proved for 6 years of joint work - AND Project company.

The new version of the ERP system met requirements of business Tattelecom and allowed to support the development strategy of the company. Performance improvement became one of positive effects from implementation of Microsoft Dynamics AX 2009. Within the project the additional functionality developed by Microsoft company especially for the new version of a system is widely applied. It allowed to optimize the labor-consuming business processes which were earlier assuming carrying out calculation of key indicators out of a system with the subsequent their registration in Microsoft Dynamics AX manually. Treat such business processes: accounting of exchange and advance differences, accounting of overalls, accounting of transactions in which Tattelecom participates in quality of the tax agent.

Within development of the ERP system in the company the new features developed in industry solution of AND Project during its development since 2005 are implemented. The updated module "Budgeting" allows to use flexible configurations of different budget models without additional programming. Also considerably advanced functionality of routes of an approval of different documents: from planned payments on the basis of which the budget of cash flow, to requests for payment forms. For control of obligation fulfillment of suppliers the functionality of accounting of specifications to agreements is used.

A specific place is held by the updated forms of primary documents and the optimized reporting system developed in the solution of AND Project based on Microsoft Dynamics AX 2009. One of new products is essentially new solution regarding filial accounting which allows to reduce labor costs by registration of transactions of intraeconomic settlement considerably. At the moment the Tattelecom company has 7 branches in different regions of the Republic of Tatarstan therefore simplification of filial accounting in the ERP system is powerful result of new implementation.

Aggregate term of the project made only 7 months. The used functionality is during this time analyzed, offers on business process optimization in a new system are prepared, the prototype is developed, user training is provided and input of a new system in operation is made. At the same time according to a wish of the management of the enterprise start is performed without the mode of double entry. Achievement of such results became possible thanks to universal connection to the project not only employees of support group from outside Tattelecom, but also directly key users: both at a stage of preparation of design of the solution, and in the course of testing of a prototype. Knowledge of the principles of system operation allows to approach offers on optimization and use of new functionality of Microsoft Dynamics AX 2009 more consciously.

Summing up the result, it is possible to note that the system created based on Microsoft Dynamics AX allows to plan more than 7 years quickly financial, material and human resources, including to obtain data on a financial and economic status of business, to technology provide control of activity of branches, to control behind capital construction, to keep the separate cost accounting, to reveal structure of cost value, thereby providing base for an economic case of rates for the provided services, to timely receive tax, accounting records, to control the current and perspective payments, to receive the consolidated statements, to plan and control activity of the enterprise for the centers of responsibility, thanks to a flexible budgeting system, to keep registration of personnel and the salary. Tattelecom received the tool using which it is possible to increase considerably efficiency of control and management of telecommunication business.