Introduction of financial and management accounting system in "SIA Group" reduced labor costs by 20%

2020: Implementation of the financial and management accounting system

On December 4, 2020, it became known that experts The first Bit introduced software solutions "" and 1C: Accounting"" BIT. FINANS.Holding for budget control, which allowed automating 400 jobs in the company SIA GROUP"," Russian pharmaceutical a distributor.

As explained, in SIA Group there were difficulties in organizing preventive monitoring of budget execution due to the fact that the process was carried out manually - this is a time-consuming process and, as a result, there was no possibility of monitoring budget execution online. All processes - consolidating the actual data and bringing into a single format the budget data collected in MS Excel from those responsible for the Central Federal District and tracking and storing budget versions during adjustments as part of budget approval were labor-intensive. The process of collecting management reports from several systems was complicated, due to the lack of necessary analytical sections, there was not enough important for the business - the details of operational reports. The company did not have a tool for tracking performance discipline in the framework of approving draft contracts and payment schedules, and accruals under contracts.

Since the human factor in the collection of reports and the long time frame for obtaining financial accounting results in terms of budgeting, consolidation of management reporting and reporting according to international standards reduced the quality and duration of work, it was decided to introduce modern systems for automating current processes. Representatives of SIA GROUP chose the company "First Bit" as the performer.

The objectives of the project were as follows:

• centralization of budget management processes (budgeting, budget control, IFRS and management reporting) in a single information system,
• Create and configure all necessary management dimensions in the budget management system
• optimizing the speed of data exchange between budget management processes,
• optimizing transparency and credibility of management reporting,
• ensuring the established deadlines for the formation of management reporting,
• centralization of budget control processes in a single information system,
• organization of the process of preventive control over the implementation of budgets of costs and payments before the company commits,
• creation of a tool for flexible adjustment of matching routes and an access role matrix,
• integration of the budget control subsystem with the budget planning, accounting and management reporting subsystems,
• eliminating the need for double entry of information for various purposes,
• ensuring the established deadlines for the formation of management reporting, optimizing transparency and reliability of management reporting,
• reduced number of errors associated with human factor.

To solve the tasks, the specialists of the First Bit consulted the customer on the choice of software and a decision was made to implement the 1C: Enterprise Accounting configuration with the BIT.FINANCE add-on, and external integrations were automated within the project:

• one-way integration "1C: Enterprise Accounting 3.0 + BIT. FINANCE "with BI system,
• bilateral integration with the 1C: Document Management system with modification of objects on the 1C: Document Management side to carry out budget control of contracts,
• One-way integration with MS Excel to load budgets and contract schedules.

The selection of the BIT.FINANCE software product was determined by the presence of the following functionality in the typical delivery:

• automated formation and approval of the draft contract with indication of payment and accrual schedules,
• integration with regulated accounting subsystem,
• monitoring mechanism by budget of costs and payments of contract schedules,
• mechanism for tracking the status and status of document reconciliation in the System,
• a flexible mechanism for adjusting the availability of document details based on status and status
• a mechanism for the automated creation, approval and execution of requests for costs/requests for spending money on the basis of schedules under contracts, as well as interactively, without reference to schedules,
• mechanism for automatic generation of primary accounting documents based on approved bids with preservation of analytical sections required for the purpose of management accounting.

During the implementation of the information system, a single space was organized for, data storage from the business plan to the preservation of all activity relationships at each budget planning/execution level. Data entry now takes place directly into the system, downloading information from MS Excel. It was possible to build in the System the required model of preventive budget control, interlinked with the systems electronic document flow and accounting "SIA GROUP" in a single loop.

The following objectives have been achieved in the automation of financial and management accounting processes:

• automated process of collection and harmonization of functional budgets for all financial responsibility centers and regions in the context of required analytical issues,
• automated sending of alerts to e-mail task owners in the framework of business process budget planning,
• automated calculation of the budget of sales, procurement, logistics (4 shoulders, costs for transportation own and hired vehicles, costs for POT, etc.) taking into account norms and volume indicators,
• calculation of the cost of sale is carried out taking into account the margin standards and other indicators,
• The calculation of the inventory budget is based on procurement budgets, sales budgets, forecast balances in warehouses and product turnover standards,
• automated formation of consolidated master budgets, including BDR, BDDS and balance sheet accounting for the group of companies,
• automated allocation of expenses (7 steps),
• Automated upload of transaction and balance data to SQL tables for reporting in the BI system
• automated initiation, approval and execution of draft contracts and payment schedules and accruals for all financial responsibility centers and regions in the context of the required analytical data,
• facilitated the process of negotiating draft contracts, thanks to the integration of the 1C: Document Management system,
• automated control of contract schedules, as well as payment and accrual operations on budgets (RDD, procurement, RDD),
• automated creation of RAS documents based on approved applications of the budget control subsystem,
• management reporting is provided on the basis of analytical sections of applications,
• creation of a business transaction log according to international standards by means of translation,
• developed an automated workstation in the system for generating accruals,
• organized work with the open period date to reflect adjustments to the closed period in IFRS accounting,
• reduced labor costs in SIA GROUP in financial planning and management accounting units by 20%.