Irkutsk Oil Company switched to 1C: Enterprise Accounting 3.0 version of Korp regarding the maintenance of regulated accounting

2021: Implementation of 1C: Enterprise Accounting 2.0 TRAC version

On February 26, 2021, InfoSoftware announced that the Irkutsk Oil Company had switched from the current accounting system "1C: Enterprise Accounting 2.0" of the TRAC version to "1C: Enterprise Accounting 3.0" of the CORP version in terms of maintaining regulated accounting and forming regulated reporting. Changes were made to the standard functionality to correctly reflect business processes, optimize user actions due to the large volume of documents reflected in the system. Various reports have been developed to enable data analysis. Tax monitoring functionality has been implemented - the tax inspector has been granted access to the system. All this has reduced the cost of record-keeping, reporting and reporting.

Irkutsk Oil Company switched to 1C: Enterprise Accounting 3.0 version of CORP in terms of maintaining regulated accounting. Photo: rogtecmagazine.com.

According to the company, the purpose of the project was to transfer the company from the current accounting system "1C: Enterprise Accounting 2.0" version of TRAC to "1C: Enterprise Accounting 3.0" version of CORP in terms of maintaining regulated accounting and forming regulated reporting.

The objectives of the project included:

• Abandon rudimentary modifications of the historical system when switching to another system.
• Develop flexible mechanisms for allocating general production and support unit costs.
• Review procedures for distribution of transportation and procurement expenses taking into account expanded analytics to reflect the multidisciplinary activities of the company.
• Automate the calculation, calculation and distribution of tax on the extraction of common minerals (mineral extraction tax on OPI).
• Obtain data in the system to calculate additional revenue tax from hydrocarbon production
• Maintain separate VAT accounting in the updated system, which is related to export operations, using the standard mechanism, while complying with accounting policy requirements.
• Reduce data processing labor and errors by automating the mass creation of specific documents, developing integration with a related system, developing documents for atypical operations, and creating reports to control the correctness of record keeping.
• Implement the mechanism of interaction with the tax authority in the form of tax monitoring.

Situation before the start of the project:

• Cost accounting and cost calculation of output. In the system "1C: Accounting of Enterprise 2.0." only one version of the distribution of transportation and procurement expenses was automated, the closing of cost accounts was carried out according to a multi-cycle algorithm, and therefore this operation took up to 7-8 hours.
• Tax monitoring. Before the start of the project, tax monitoring was not applied by the customer, in the historical accounting system the necessary functionality was absent.
• Separate VAT accounting. Part of the raw materials produced by the company is shipped for export, in this regard, separate VAT accounting is used. In the historical system, the standard mechanism for separate VAT accounting was partially used and was significantly improved, while not all VAT registers were used. In this regard, the collection and analysis of data on the operations of adjusting incoming VAT for the formation of correct reporting was very time-consuming, it required a lot of manual work.
• Mining tax. The accrual and allocation processes for IRS have not been automated. The user had to manually process and analyze a large amount of data in a short time to correctly reflect the tax calculation and distribution in the system.
• Additional income tax. NDD is a pilot project of industry tax. In the historical system there was no functionality for the calculation and accrual of this tax.
• Financial transactions. All payments of the company were made on the basis of the register of payments and the attached primary documents transferred from the treasury to accounting on paper. In "1C: Manufacturing Enterprise Management," actual payments were recorded manually based on bank statements received from banks. Several thousand payments were made each month for the transfer of accountable funds, alimony and payment of rental payments. In the historical system, the automation of the creation of payment orders is implemented using processing and only for two types of payments.
• Fixed assets. Of the atypical asset transactions, only the asset transfer from stock has been automated in the historical system. Operations to transfer fixed assets to stock, to preserve and depreserve them were carried out using manual operations, the criteria for restoring the depreciation premium when transferring fixed assets were monitored manually by accountants.

As an accounting system, "1C: Enterprise Accounting 3.0" was chosen precisely the version of CORP in connection with the need to maintain full-fledged accounting for separate divisions. Additionally, the following were developed:

• Tax monitoring subsystem.
• Data collection mechanism for calculating Additional Income Tax.
• Integration of payment documents between "1C: Enterprise Accounting 3.0 KORP" and "1C: Enterprise Management."

Many accounting processes have been modified and automated in blocks such as:

• accounting of financial, currency transactions and mutual settlements with counterparties;
• accounting of goods, capital costs, fixed assets;
• accounting of finished products, expenses, cost calculation, month-end closing procedures;
• VAT, income tax, mining tax, transport tax, property tax.

The system of access rights was adapted to the requirements of the company. To determine the optimality of the chosen architecture with the above data volumes, load testing was carried out, the success criterion of which was the duration of the month-end closing procedure. The results obtained fully meet the needs of the company.

When you switched to another configuration, you saved all the necessary historical data.

Project Scale:

• about 2,000 jobs are automated;
• as of February 2021, about 170 people work simultaneously in the system;
• on average, 40,000 documents are recorded in the system on a monthly basis;
• The number of records showing the amount of incoming VAT to be distributed per quarter is more than 46 000 lines.

The peculiarities of the project are as follows:

• Cost accounting and cost calculation of output. The procedure for allocating general production costs and support unit costs has been modified. Distribution is made according to the factors indicated to users in the section of departments, including the allocation of expenses of one division to another division is permissible.
• Various algorithms for distributing transportation and procurement costs are implemented, depending on the latitude of the analysis used.
• Tax monitoring. A separate subsystem has been developed - tax monitoring, within the framework of which:
  • The possibility of creating tax monitoring requests on the basis of any documents and directories of the system, as well as without reference to the objects of the system;
  • It is possible to attach both external files and files attached to the system objects to the query responses;
  • automated change of tax monitoring message states (statuses);
  • Automatic notification of new e-mail request of customer responsible persons has been developed.

• Separate VAT accounting. According to the company's requirements, all incoming VAT should be subject to distribution, with the exception of VAT amounts originally related to activities subject to VAT at a rate of 0%. In this regard, the standard mechanism for separate accounting for VAT has been significantly improved and improved. Standard documents have been finalized that accrue and change the amounts of incoming VAT. All types of "Receipt Adjustments" and the "VAT write-off" document have been modified to take into account different periods of the original documents and their acceptance to deduction. To correctly account for VAT on the processes reflected in the system by manual transactions, including reversal transactions, a document has been created that automatically generates the correct movements in the VAT split registers.
• Mining tax. A flexible setup system has been developed for the calculation and calculation of IRS by IRS, with the possibility of adding, excluding accounts and dimensions, in the context of which information is collected for the calculation of IRS by IRS. An additional routine transaction has been created to calculate and accrue the IRS for IPI. The allocation is performed by a typical routine account closing operation 20, 23, 25, 26. Therefore, the calculation, accrual, and allocation of IRS to the IPI can be carried out as part of the month-end closing without additional work.
• Additional income tax. In order to obtain the data in the system necessary to calculate the tax on additional income from hydrocarbon production, complex reports were developed that collect information on the various costs related to the development of wells for hydrocarbon production, as well as determining their confirmation, with the possibility of further accounting for expenses in the calculation of tax.
• Financial transactions. The automation of mass creation of payment orders was carried out through the added document, which is the most universal solution and will allow in the future, if necessary, to expand the functionality of the document through expanding the list of types of operations without significant development costs. Integration between 1C: Enterprise Accounting and 1C: Enterprise Management systems has been developed, in which payment documents are created automatically by accounting based on payment requests uploaded to the system as part of the payment register - the system document 1C: Enterprise Management, which is a list of payment requests. In the Treasury subsystem of the 1C: Plant Management system, actual payments made in accounting are automatically reflected.
• Fixed assets. For the correct reflection in the system of operations on transfer of fixed assets to and from stock, for their preservation and depreservation, a non-standard document with the corresponding types of operations was adapted and finalized, ensuring the necessary movements in all necessary registers. When transferring assets, the criteria for restoring the depreciation premium and placing the corresponding characteristic, if necessary, are automatically checked.

Project Results:

• Reduce document creation work by 60%
• The transition from the historical accounting system ("1C: Accounting of the enterprise 2.0 TRAC") to "1C: Accounting of the enterprise 3.0 CORP" was carried out in terms of maintaining regulated accounting and forming regulated reporting.
• A tax monitoring system has been introduced. Tax monitoring is implemented by granting the tax inspector access to the taxpayer's account system, which is the fastest and most visible of the possible options for tax monitoring.
• Cost calculation and cost account closing times have been reduced from 7-8 hours to 30 minutes.
• Integration of payment documents between "1C: Enterprise Accounting 3.0 KORP" and "1C: Production Enterprise Management" systems is implemented.
• The algorithm for calculating, accruing and distributing MET by OPI is automated, which led to a decrease in labor costs.
• A tool has been developed to obtain information for calculating BAT.
• The algorithm of separate VAT accounting has been modified, which allows you to generate correct VAT reporting.
• Labor costs for creating mass documents in the system decreased by 50-60%
• All this made it possible to significantly reduce the labor costs of maintaining correct records, creating and providing reliable reports, and also optimized the effectiveness of the customer's interaction with the tax authority.

{{quote 'author
= told Olga Gershkevich, chief accountant of Irkutsk Oil Company LLC | As a result of the implementation of the information system, various tools (reports, improvements) have been developed that allow you to analyze, maintain the correctness of data in the system due to the peculiarities of company accounting and minimize the use of manual operations. Payment order generation, cost calculation algorithm and other processes are optimized. Various settings have been added to the system to make it more flexible for necessary changes that occur in the company's accounting policy. Automated and finalized under the requirements of the accounting policy of accruing and reflecting various taxes (tax on the extraction of common minerals, water tax, property tax). The method of assigning roles and profiles to users has been streamlined and implemented.}}