JFC group (ERP system)

Project Tasks

Group Jay Eph Xi Ltd, integrating the companies on production, purchase, processing, storage, transportation and implementation of fruit, contains 14-year history. JFC owns the companies in St. Petersburg, Moscow, Novosibirsk, Krasnodar, Yekaterinburg, Chelyabinsk, Kazan and Nizhny Novgorod and also in Cyprus, in Ecuador and in Costa Rica. Annually the enterprises sell about 500,000 tons of fruit.

The management of group set the object to automate accounting on the international financial statements, but based on the existing system it occupied a progressive tense. The software product which would allow to transfer quickly and qualitatively accounting to IFRS was necessary for Group Jay Eph Xi Ltd.

Project Steps

• development of the procedure and sale of the mechanism of unloading from "1C: Accounting 7.7" in "1C: Manufacturing Enterprise Management 8" of accounting data of all branches.
• the data transfer model in IFRS with the subsequent transformational adjustments on accounting sections is created (fixed asset accounting, accounting of intangible assets, accounting of reserves, goods revaluation in IFRS).
• development of the mechanism of automatic calculation of economic transactions between the companies. It allowed to create the general standard reporting with elimination of intra group turnovers which allows to carry out the analysis of economic transactions in accounting of all companies and to see what digits as a result will be included in IFRS.

Project Effect

The company received uniform information base in which accounting data of all enterprises of holding are stored. A system allows to broadcast quickly booking data of each company in IFRS and to automatically make transformational adjustments. In the near future consolidation will be made in "1C: Manufacturing Enterprise Management 8". It will reduce time for formation of the consolidated statements to one-two weeks and the number of actionees of these transactions of specialists.

Customer Feedback on the Project

The Dialog Information Technologies company completed an implementation project "1C: Manufacturing Enterprise Management 8" in the largest international network on production, logistics and distribution of fruit - JFC group.

The JFC group integrating the companies on production, purchase, processing, storage, transportation and implementation of fruit contains 14-year history. JFC owns the companies in St. Petersburg, Moscow, Novosibirsk, Krasnodar, Yekaterinburg, Chelyabinsk, Kazan and Nizhny Novgorod and also in Cyprus, in Ecuador and in Costa Rica. Annually the enterprises sell about 500,000 tons of fruit.

Accounting in the companies of the JFC group is kept in the 1C: Accounting 7.7. software product, and at the head office located in St. Petersburg, long time a system *** was used, however its support required finance costs. The management of JFC set the object to automate accounting on the international financial statements which formation was made in Microsoft Excel, but based on the existing system it occupied a progressive tense. JFC was necessary the software product which would allow to transfer quickly and qualitatively accounting to IFRS. The modern platform "1C: Manufacturing Enterprise Management 8" which possibilities to the management of JFC were shown by specialists of Dialog Information Technologies company conforms to these requirements. System performance and the total cost of the project met requirements of the enterprise therefore a choice was made for benefit of the solution of 1C, and the Dialog IT company at the beginning of 2007 got to work.

As implementation "1C: Manufacturing Enterprise Management 8" in each JFC branch would occupy a significant amount of time, the decision on creation in the head company of uniform information base in which all data will be translated to IFRS was made.

The project was complicated by the fact that it was required not only to implement to group setting of IFRS, but also to consolidate the reporting under all branches. Responsible specialists who collected accounting data and made individual statements on each of the companies were earlier for this purpose appointed, and then prepared the final reporting under the enterprise in general in the table Excel that took about one and a half months.

Thus, specialists of Dialog IT solved four main objectives. First, the procedure is developed and the unloading mechanism from "1C: Accounting 7.7" in "1C: Manufacturing Enterprise Management 8" of accounting data of all branches is implemented. Then the data transfer model in IFRS with the subsequent transformational adjustments on accounting sections was created (fixed asset accounting, accounting of intangible assets, accounting of reserves, goods revaluation in IFRS). After the reporting under each branch was received in the IFRS format, specialists of Dialog IT developed the mechanism of automatic calculation of economic transactions between the companies of the JFC group. It allowed to create the general standard reporting with elimination of intra group turnovers which allows to carry out the analysis of economic transactions in accounting of all companies and to see what digits as a result will be included in IFRS.

Implementation of an information system on 10 jobs took place in several stages:

1. Февраль – April, 2007 - modeling of IFRS, user training on a demonstration example.
2. Апрель – June, 2007 – data exchange, loading in the basis "1C: Manufacturing Enterprise Management 8". In parallel with it underwent programming according to IFRS and loading of a remaining balance on accounting
3. Июнь – September, 2007 – input of the 1C: Manufacturing Enterprise Management system in trial operation
4. Сентябрь - December, 2007 – a test stage of real data, development of additional reports that led to significant expansion of functionality of a system
5. Декабрь 2007 January, 2008 - improvement of the procedure of data transfer from accounting in IFRS, user training to work on real data
6. Февраль 2008 - debugging technology and start in commercial operation
7. В July, 2008 all works on debugging and support of a system from Dialog IT company then a system is supported by forces of IT department of JFC are completed.

It should be noted that long terms of implementation belong to positive sides of the project as for a big time frame it was succeeded to check carefully how a system will work with real data.

The project success was provided high competence of specialists from a project team from JFC and their availability for service in a new system and also the good organization of project management in Dialog IT.

According to the results of the project the JFC group received uniform information base in which accounting data of all enterprises of holding are stored. A system allows to broadcast quickly booking data of each company in IFRS and to automatically make transformational adjustments. In the near future consolidation will be made in "1C: Manufacturing Enterprise Management 8". It will reduce time for formation of the consolidated statements to one-two weeks and the number of actionees of these transactions of specialists.

Now the experience of implementation of information systems got from specialists of Dialog IT during the project, the staff of JFC applies at independent automation of accounting in separate companies of group.

Further in JFC group implementation of budgeting subsystems and planning of money is planned

The JFC group expresses gratitude to specialists "Dialog Information Technologies" for professionalism and qualitatively performed works. We note Dialog IT as reliable and fair partner.

Nikitina L.N., glanvy accountant
29.06.2009