Financial departments of Kirov Plant Group work in a single system of treasury of 1C

Specialists 1C-Rarus in St. Petersburg integrated separate payment systems of 38 legal entities of JSC Kirov Plant Group in a single system of treasury. The reference book by partners numbering more than 18,000 elements is consolidated and unified. Short-term planning and forecasting of cash flow are automated, preparation of financial statements for the management is optimized. In a new system 300 jobs for users are created.

JSC Kirov Plant group - one of the largest Russian industrial enterprises of a machine-building profile with the developed metallurgical base. Among the main activities – military, power, tractor engineering, metallurgical production, asset management. Clients of JSC Kirov Plant Group are the companies and the enterprises of agro-industrial and fuel and energy complexes, road, industrial and civil engineering, an oil and gas sector, nuclear power, the defense sphere, forest and municipal services, railway transport, shipbuilding, an eskalatorostroyeniye. The plant is founded in 1801 and included in the List of the systemically important enterprises of the Russian Federation. The staff of Group totals more than 5,700 employees. The property complex of JSC Kirov Plant includes about 400 hectares of the land plots and about 1.5 million sq.m of buildings and constructions.

38 legal entities which work in the field of treasury was performed independently in each legal entity earlier are a part of JSC Kirov Plant Group today. There were no uniform unified regulations that complicated maintenance of the general payment discipline in Group. Business processes of subsidiaries differed from each other, some subsidiaries practiced own methods of formation and updating of plans. Also processes of an execution of requests for a funds expenditure and forecasts of their receipt differed. From time to time in a number of subsidiaries there were problems with operational planning of payments, especially in the presence of large volumes of unplanned and "urgent" payments. "Cash gaps" in some subsidiaries could lead to delays of a part of payments in other subsidiaries.

As a result need to create a common information space for management of cash flows on Group, to bring order by implementation of the uniform principles of management of finance documents and cash flows ripened. It was decided to make it using a new information system.

The St. Petersburg branch "1C-Rarus" became the partner in implementation. For the solution of assigned tasks the solution on the 1C:Enterprise 8 platform with wide functionality for the organization of important processes of treasury, formation of the analytical reporting, work with budgets and control of their execution was selected.

Work on the project was divided into three stages with separate functional requirements to each stage. At the first stage accounting in a single system of the actual balances in cash on checking accounts of the organizations was automated. The main objective consisted in integration of a system of treasury with the current information systems of accounting.

The second stage set as the purpose implementation of operational planning of cash flow: creation of requests for a funds expenditure, electronic approval of requests, formation of registers on payment with the subsequent registration of the actual payments.

At the third stage the functionality for short-term planning and forecasting of cash flow, formation of budgets for different scenarios with operating control of their execution was implemented.

In 8 months a system was unrolled on 300 jobs, and financial departments of 38 legal entities are united in a single system of treasury. Big methodological work was carried out with system implementation. Specialists consolidated 1C-Rarus and normalized reference books by partners over 18,000 positions and also reference books of current agreements with partners. Using specialists 1C-Rarus were prepared, approved and implemented: regulations of maintaining normative reference information, regulations of planning of cash flow, regulations of payment discipline.

A new system allowed to optimize work of personnel. The system of treasury is integrated with the local systems of accounting that allows accountant officers to work in the mode, usual for them. Differentiations of access rights of employees to a system are configured. It helps to save base from entering of inadvertent errors, duplication of information and limits access to confidential information. Plan-fact cash flow analysis is expanded, the new analytics in payment schedules is added thanks to what heads had new opportunities in the block of the reporting. The obtained data allow them to monitor a financial status of the divisions, to trace terms and a payment status according to the requests and in time to make management decisions.

Key project deliverables:

• The management of JSC Kirov Plant Group received the tool consolidating financial information on all 38 legal entities. A new system unified and standardized financial activities of all affiliated enterprises. The uniform reference book by partners over 18,000 positions is consolidated and normalized. Operational planning and management of cash flows is adjusted that allows to prevent cash gaps and to maintain loyal vendor relations and clients.
• For initiators of payments the instrument of control over process of approval and execution of payments appeared. Approval of requests from paper carriers is transferred to an electronic form. Each created request undergoes approval along one of 93 preconfigured routes created on the basis of the approved criteria. Now any request will not be lost and will not remain unaddressed.
• The task of approval of requests for heads of divisions is most simplified. In a system more than 200 requests for payment are daily created, and along the configured routes they get to the corresponding heads. It allows heads to save considerably the working time, working with information only of divisions subordinated to them. The special desktop allows to display visually all relevant information on requests, to quickly deliver the visa on the selected documents. The system of notifications helps the approving persons to react to the request timely.
• The scheme of creation of registers of payments for the staff of financial departments changed: the register forms automatically according to the results of approval of separate documents. There was an opportunity directly from a workplace of the treasurer to manage payment: plan and distribute payments, shift them in trading day, pay partially or not pay. All this allows financiers to manage more than one thousand payment documents a day, observing payment due dates.