Lamoda moved the financial loop to "1C: Holding Management" for 10 months

2024: Transfer of Financial Loop to "1C: Holding Management "

On January 22, 2025, the Odyssey Consulting Group team announced that it had helped the fashion retailer move the financial loop from a foreign system to 1C: Holding Management for 10 months.

As reported, development resources were spent on constant control over system updates. Taking into account corporate strategic goals, the company's management decided to switch to the Russian software a company that 1C supports regular updates ON in terms of regulated accounting and reduces the cost of supporting and developing the system.

Before the implementation of the solution from Odyssey Consulting Group, it was implemented as follows:

• Microsoft Dynamics AX (ERP system):
  • financial processes
  • NSI
  • posting invoices for indirect purchases, accounting of accountable persons, formation of purchase books and sales books
  • Treasury (formation of applications for indirect purchases, payment, loading of statements, etc.)
  • accounting of accountable persons
  • period-end closing
  • adjustments to property, plant and equipment for IFRS reporting

• 1C: KORP Company Accounting Department
  • Accounting of fixed assets, NMAs, leases and leases

• MS Office Excel
  • Accounting and Tax Reporting

The proposed project would affect the entire financial system of the company, including settlements with millions of customers and counterparties. At the same time, it was necessary to ensure a seamless and risk-free transition of the system to an updated platform and maintain the level of Lamoda service. One example of the level of service is that Lamoda guarantees a refund period for the returned goods within 10 days, which should be ensured by the capabilities of the company's financial system.

A prerequisite for the implementation of the project was the participation of a third party of a consultant company from the Big Four. As a trusted consultant to Lamoda in the field of accounting tax and accounting under RAS and IFRS, this company had to verify all design solutions from the point of view sight of the correctness and completeness of accounting for Lamoda.

One of the main goals of the customer was to launch the system in early January 2024, as financial units provide data supply for regulated reporting.

This opportunity for a comfortable launch would only be available in 2025. It was not acceptable to postpone the launch even by a quarter, given the difficulties of collecting and loading the initial balance for a federal-scale company within the year.

To implement a large-scale migration, Lamoda turned to Odyssey Consulting Group. Odyssey consultants began work in the spring of 2023. The launch of the system was planned for January 2024.

The following project objectives were defined:

• Reduce the number of labor-intensive and routine operations by automating business processes for preparing regulated reporting, reduce labor costs for the calculation unit with accountable persons.
• Optimize the speed of updating the system in terms of accounting and tax accounting in case of changes in legislation.
• Reduce the risks of changes to the operating loop affecting the financial one.
• Reduce the amount of service and update of foreign ERP with changes in the law, reduce the cost of owning information systems by archiving it.
• Provide a basis for the implementation of IFRS, budgeting (controls) and indirect procurement.

The objectives of the project as part of the implementation of the goals:

• Transfer of accounting and tax accounting functionality to 1C: Holding management.
• Transfer of Treasury functionality to 1C: Holding management.

Setting up 1C integrations: Holding management with systems:

• Foreign ERP system responsible for the operating part
• 1C: Payroll and HR Management
• EPM/BI Optimacros
• EDM Contour Diadoc
• Direct-Bank
• 1C: Trade Management.

Lamoda's financial loop processes have a high degree of maturity. It was necessary to create a solution that made it possible to preserve the key features of these processes from the historical system, while optimizing and adapting them to the functionality of the target system based on 1C: Holding management.

The Odyssey team has configured integrations with the following systems:

• The system responsible for the operating part of Commodity Movement, sales, direct purchases, formation of requests for payment for direct purchases, cash transactions, formation of cost prices.
• Exchange using the Direct Bank service
• Third-party EDM operator
• eCAP Contract Approval System
• Third Party Budgeting System
• EPM/BI Platform
• Other systems
• Including 1S:UT and 1S:ZUP

To ensure the effective exchange of data between these systems, a broker was used, data Kafka which was already used in Lamoda. For integration with auxiliary systems, simpler mechanisms were used, such as - HTTP services, seamless integration of 1C platforms and data exchange through - XML structures.

Master systems for key reference books: counterparties, contracts, financial analysts were determined by NSI. The Odyssey team carried out work on migration from the historical system with the necessary change and saturation for the target 1C system: Holding management.

To reduce the number of routine operations and labor, the team implemented many downloads from MS Excel to form an NSI, automatically fill in and/or form documents.

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Фото: odysseyconsgroup.com

The Odyssey Consulting Group team was able to implement the project without deviations in terms of time and with a minimum deviation in budget. As a result of the project, Lamoda switched to a single financial system based on 1C: Holding Management. In addition, a base has been prepared for automation of indirect purchases, budget control, automation of financial accounting under IFRS.