In Evrotsement group the planning and budgeting system based on Hyperion Planning is optimized

Optimization of a planning and budgeting system, development of the system of cost accounting based on Hyperion Planning EVROTSEMENT group

As a result of optimization of a planning and budgeting system the general time of calculation of the budget was reduced. The model of calculation of forecast indicators allowing to receive quickly specified current plans and forecast calculation of cost value is implemented.

Prerequisites

In EVROTSEMENT Group the planning and budgeting system which allowed to receive the consolidated budget on all holding was already implemented. Based on operation of a system within a year need of its optimization for the purpose of reduction of time of calculation of the consolidated budget of holding or the budget of one enterprise ripened.

Also in the company means of the existing accounting system solved a problem of formation of planned and actual calculation of cost value of semi-finished products and finished goods. For this purpose in the accounting system the corresponding settlement procedures were configured. Among shortcomings of an existing solution it was possible to select:

• Impossibility of fast parallel calculation of calculation upon and according to the plan, at the same time the priority of calculation was given to the actual calculation
• Big time of calculation at the same time for all organizations.
• The long procedure of check of correctness of data at integration of Hyperion Planning and AS Parus (by transfer of budget data from Hyperion Planning and data at cost in Hyperion Planning).
• Need of support of unique settings for each company of holding (about 30 companies, including cement works and karyeroupravleniye).

For improvement of process of acceptance of management decisions it was necessary to eliminate the specified defects, i.e. to optimize the existing budgeting system and to implement processes of calculations of calculation of cost value.

Objectives

• Optimization of the existing project solution of planning and budgeting
• Development of a new automated system of calculation of cost value of semi-finished products and finished goods

Tasks

• Performance improvement of the existing system, expansion of the user functionality
• Optimization of the current solution architecture
• Adaptation and completion of the existing calculation methodology for implementation in Hyperion Planning
• Transition from cost accounting, iterative on the greedy method
• Formation of the automated system of cost accounting including the following necessary characteristics:

• Integration with the existing schedule system based on Hyperion Planning and the existing accounting system
• Formation of the preconfigured reports displaying key results of calculation of cost value
• Development of manual adjustments and calculation of forecast managerial indicators on the basis of budget and actual data

Project Progress

• Throughout the project methodical study of model by specialists of EVROTSEMENT Group together with methodologists of AT Consulting was performed. It was succeeded to unify the existing schemes on closing of cost value to one general scheme used for all companies of holding producing raw materials, semi-finished products, finished goods
• The main complexity of the project consisted in need of display of a final result of calculation of cost value with preserving of several primary analytical signs, such as cost and amount of primary raw materials transferring costs of division, article and cost element
• Specialists of EVROTSEMENT Group developed and implemented the system of integration with the existing system of management accounting. It allowed to visualize result of cost accounting and for actual data
• Planned poperedelny calculation of cost value of raw materials, semi-finished products, finished goods was implemented. It included:

• Cost accounting of the auxiliary and main production including more than 15 types of allocations
• Calculation of costs for cement grades for each plant
• Calculation of costs for cement grades for group in general
• Calculation formation – using data of both accounting, and management accounting

• It was implemented several user reports used for visualization of result of calculation by method, convenient for acceptance of management decisions; other reports – based on Hyperion Financial Reporting
• In the project progress there was a need to include in the existing settlement scheme of cost value the new plants which were included into holding after the beginning of operation of a system. Specialists of EVROTSEMENT Group together with group of development AT Consulting made necessary changes and settings for operational inclusion of the new enterprises in a budgeting circuit.

Result

The separate application Hyperion Planning for cost accounting (integrated into the existing system) allowing is implemented:

• Is centralized to calculate result of planned cost of unit of finished goods
• To quickly receive managerial and accounting calculation by used for production of finished goods of raw materials, primary resources and also by an other expenses according to the actual, forecast and budget data
• Prepare several versions of the budget and reportings under them
• Receive automatic the plan fact reports on the analysis of cost value, production volumes, dynamics of change of costs, etc.

Optimization of an existing solution of planning and budgeting, the general time of calculation allowing to reduce is made. The model of calculation of forecast indicators allowing to receive quickly specified current plans and forecast calculation of cost value is implemented.