"The consolidated Carriage Company" created a single financial system of enterprise management based on SAP S4/HANA

2019: Start of a single system of the automated accounting and the reporting, planning and budgeting

On March 15, 2019 the SAP company reported that the Consolidated Carriage Company Scientific and production corporation (NPK OVK) brought into commercial operation a single system of the automated accounting and the reporting, planning and budgeting based on SAP S4/HANA Central Finance and SAP BPC11.

According to information for March, 2019 a system works at three enterprises and further will be scaled on all companies entering into corporation. The integrator of the project is ASAP Consulting company.

Using S/4HANA Central Finance NPK OVK technologies it was succeeded to reduce financial and tax risks, to reduce costs for financial audit and labor costs of users due to use of a common information space. For March, 2019 in a system all processes of financial accounting and reporting are implemented. The second stage of implementation which is going to finish in the second half of 2019 will affect processes of budgeting, strategic and operational planning.

Implementation of S/4HANA Central Finance was caused by need for the flexible, reliable and scalable tool for collection of information about business activities and adoption of operational solutions, considering difficult and separate IT architecture of the company. One of features of the project was that the target architecture assumed integration with the operating (historical) ERP system of Infor LN using S/4HANA Central Finance technology. For March, 2019 integration of SAP with the Infor LN production system, BShchSS-Kadrovik, MDM and other systems is implemented. Besides, the project is implemented on flexible methodology of SAP Activate (Agile). Thanks to such approach of the company it is possible to adjust quickly the requirements, to involve business in the project more actively and to optimize time expenditure on start of the solution.

"Due to implementation of S/4HANA Central Finance in OVK the uniform consolidating layer in which all financial information is in real time available is created. For several months of commercial operation of a system it is possible to speak about significant jump in quality and efficiency of the obtained information and serious changes in the general approaches to implementation of end-to-end business processes. Implementing solution of SAP helped to rethink approach to formation of target architecture of the company the next 3-5 years". Anton Saykin, deputy CEO for risk management of PJSC NPK OVK

"The large companies which carry out hundreds of transactions a day do not ask a question whether it is necessary to automate audit, controlling and other financial processes, and select technologies and means which are better for using for this purpose. Modern solutions help not only with operational management, but also give the chance to use further for work with data of machine learning technology, a blockchain and other innovations". Alexey Petunin, deputy CEO of SAP CIS

"SAP S/4HANA Central Finance allows to prepare the centralized financial statements in a difficult system landscape. As a result preparation of documents on daily economic transactions is performed quicker, extent of detailing raises and, thereby, uniform approach to data analysis forms". Valeri Vorobyov, CEO of ASAP Consulting

2017

SAP implementation of S/4HANA

On April 27, 2017 the SAP SE company announced software implementation of SAP S/4HANA in NPK "Consolidated Carriage Company".

NPK "Consolidated Carriage Company" (2017)

Project Results

The implemented system allowed to increase the speed of work of a corporate information system and procedures of closing of a financial period, to optimize management of corporation, to provide the level of analytical opportunities and the reporting in real time, to reduce financial and tax risks, to reduce costs for financial audit and labor costs of users.

"Implementation of the modern SAP platform at our manufacturing enterprises is a logical and at the same time significant step for holding. The support on the leading functional and technology developed solutions will allow to provide the maximum business effect and to qualitatively improve production processes". Vladislav Masenkov, development director of IT NPK of OVK

Transfer of financial and economic accounting to SAP S/4HANA

SAP CIS and Consolidated Carriage Company Scientific and production corporation (NPK OVK) announced on October 26, 2017 start of an implementation project of the SAP S/4HANA system.

Prerequisites

In the last two years production volume at the NPK OVK enterprises increased by 1.5 times, the annual release reached a point in 16,000 freight cars, the product line extended up to 45 modifications of hi-tech cars, the company entered international markets of sale. Respectively, volumes of the collected and analyzed information increased. All these changes required high-quality development of the used IT tools in connection with increase in requirements to the level of transparency and controllability of production processes, logistics, service and obligation fulfillment before clients. NPK OVK made the decision to create a single financial system of enterprise management based on SAP S/4HANA.

Project Tasks

Project objective — to optimize information analysis about business activities and process of acceptance of management decisions, using the latests version of SAP S/4HANA and SAP BPC. Functional project scope includes strategic planning processes and budgetings, accounting and reporting on all types of accounting: accounting, tax, managerial, IFRS, to formation of the consolidated statements.

As noted, the project has several features. First, creation and implementation of a uniform data model that allows to monitor quickly changes, to optimize workflow, to avoid replication and to reduce data sizes not less, than by 8 times. Employees will be able to accept timely reasonable business solutions on the basis of operational data, without waiting for closing of reporting period, including in a binding to strategy and/or the budget of the company, at the same time the reporting will be prepared "on the fly". Secondly, the target architecture assumes integration with the operating (historical) ERP systems, thanks to use of Central Finance technology.

According to the development director of IT of NPK OVK Vladislav Masenkov, a main objective of the company — to optimize information analysis using opportunities of advanced technologies of SAP S/4HANA, to reduce financial and tax risks, to reduce costs for financial audit and labor costs of users due to use of a common information space.