UTG Group accelerates management reporting thanks to 1C: Management of Holding 8

2021: Implementation of 1C: Holding Management 8

On July 16, 2021, Gandalf announced that UTG Group automated management and financial processes thanks to a system based on 1C: Management of Holding 8. The implementation project was developed and implemented by specialists of GANDALF.

UTG Group

According to the company, before the introduction of the automated system, the enterprise worked in several disparate programs. For accounting, the 1C: Accounting program was used by KORP, revenue from aviation services was recorded in the USMart information system of its own development, accounts were formed in the Directum specialized program, spare parts, parts and equipment for airliners were recorded in the Dome information system itself. Management reporting was generated only manually in Microsoft Excel tables.

Since the data was in several separate programs, you had to perform a lot of unnecessary actions. For example, employees formed payment documents in Directum, then manually entered them in the 1C database and sent payment orders. Procurement specialists had a complex system for coordinating applications: first they wrote an application on a sheet of paper, which was approved by several people, then they scanned the signed form, again sent for approval, and only after that they were sent to the accounting department. In addition, when uploading data, errors, inaccuracies occurred, which later had to be corrected manually.

As the volume of processes increased, their complexity increased, and the requirements for the quality and transparency of data used for management decisions grew. The company has a need for a holistic, unified, safe and fast information system.

And in 2019, the management of the holding decided to build an IT architecture based on 1C solutions, the 1C: Management of the Holding software product was taken as the basis. For this purpose specialists of GANDALF company were invited.

Clear goals and objectives have been defined for the automation project:

• timely provision of reliable information to external and internal users for management decisions;
• optimization of business processes, transparency of accounting;
• consolidation of key production and financial data in a single database, access of interested users and strategic decision makers;
• optimizing the level of control over the safety and condition of property.

Processes were identified that require central control of the management company: operational consolidation of data into management reports, budgeting, centralized treasury, procurement, management of contracts and debts, property.

For each of the processes in the 1C: Holding Management system, a number of tools have been developed to achieve the goals set by the customer:

• Data consolidation and IFRS - quarterly provision to users (shareholders, board of directors, management, credit institutions) of consolidated financial and production data on the group of companies in accordance with IFRS, including data on intra-group operations.
• Budgeting and management reporting - budget models by company and key business areas. Monthly plan-fact analysis of group companies activity.
• Debt management - weekly generation of an operational debt report for each customer.
• Centralized Treasury - a single payment calendar and centralized coordination of payments of group companies.
• Centralized procurement and warehouse accounting - management reports on cost, movement and inventory balances. Vendor's office.
• Property Management, Centralized Inventory - Updated Asset Accounting Card.

All the necessary information for generating financial statements according to the international template is now collected automatically from the data that users enter in advance into the program. With the software product "1C: Management of Holding 8," the time for preparing budgets and management reports was reduced by 400%.

Treasury applications were transferred from a third-party program to a single information system, the business process to agree on further payment became a single one. Documents are now available to all users who have rights to do so and are routed in this system.

The financial and economic service has many useful tools. Now specialists have the opportunity to track the current cash flow. One of the updated tools is the payment calendar. It monitors, adjusts and optimizes all planned costs and revenues. In addition, it shows information about the deadline for payment. Now the number of payments that did not pass the approval procedure has decreased by 90%.

Integration with the actual developed program "Dome" is set up, in which spare parts for aircraft are recorded.

Tenders of the company are formed in the 1C: Holding Management system. Each contractor has the opportunity to leave their bids in this system, monitor the status of the tender and the customer's comments. That is, now the communication between the customer and contractors is significantly optimized: loss of information is excluded, unnecessary interaction is minimized.

Procurement specialists work independently in the 1C base. It is possible to make consolidated purchases for all departments. The system generates a list of proposals for different suppliers and selects the best option according to the given criterion. Now errors are minimized.

The economic effect of the implementation in% was:

• optimization of credit rating (credit limit) - 100
• reduction of time for preparation of budgets and management reports - 400
• optimization of obtaining regulated reporting - 50
• reduction of overdue receivables - 50
• reduction in the number of payments that have not passed the approval procedure - 90
• optimizing payment timeliness - 100
• reduction of accounting errors per item group - 99
• reduction of non-production write-offs - 50
• reduction in material resources - 10
• Reduced operational and administrative costs - 10
• reduction of labor costs in units - 30
• reduction of the number of contracts in violation of the approval procedures - 90
• optimizing staff efficiency - 30

The 1C: Management of the Holding system has been used by the Yu-Ti-Ji group of companies since 2021. Already from the first reporting period, it has become an indispensable tool for timely provision of information to management and owners, on the basis of which key management decisions are made. It is hard to believe, but a year ago it would take the entire calendar year to collect similar data, which would make such information irrelevant, and some could not be provided. said Stanislav Ivanov, Director of Economics and Finance of Yu-Ti-Ji Group JSC

For us, it was an interesting implementation project, starting from the non-standard task of upgrading from "1C: Accounting" to "1C: Management of the Holding," ending with the transition to version 3.1. And we achieved this result as planned, despite the difficulties and obstacles to the path that most companies had in 2020. We have optimized the economic performance of the customer's business after implementation, adjusted and adapted to external conditions, lavishing between risks. I am grateful to each participant in the project for his effectiveness, involvement in the common cause, hard work. shared Lyubov Shchegolevatykh, impressions of the project manager "GANDALF"