Emir-Oil (1C Rating: Integrated Financial Management and Budgeting for Kazakhstan (KUFIB))

Specialists of the company "1C Rating" completed the project to create an integrated information system in LLP "Emir-Oil" on the basis of the industry solution "1C Rating: Integrated financial management and budgeting for Kazakhstan."

The system helped to optimize accounting in the company and coordinate the work of all departments to improve the transparency of accounting. The system made it possible to reduce the time for collecting reports, and to conduct analyses of the implementation of planned tasks as soon as possible. The main results of the project include automation and improving the accuracy of calculating the cost of production in the context of wells and fields, reducing the time for calculating wages by 2 times. Functional currency accounting was also implemented, as a result of which the procedure for preparing data for financial statements was accelerated from 3 days to 1 day. The budgeting process is automated.

Emir-Oil LLP is a company specializing in oil and gas exploration and production and owns licenses for geological exploration of the Aksaz, Dolinnoye, Emyr, Esen, Kariman fields block located in the Caspian region of the Republic of Kazakhstan on an area of ​ ​ about 850 square kilometers.

In 2014, the company needed comprehensive automation, because at that time only accounting in the program of a third-party developer was automated, but the capabilities of this program were limited, part of the accounting work was carried out manually. The movement of documents in the company from the moment of creation to the completion of execution was opaque and uncoordinated.

The company had a need to organize a transparent document flow, make the receipt of actual costs operational, automate the budgeting system, the processes of organizing procurement and warehouse accounting, the process of submitting a request before concluding a contract and reflecting this process in accounting.

The program product "1C Rating: Integrated Financial Management and Budgeting for Kazakhstan" (hereinafter referred to as KUFIB) was selected to implement the goals. The implementation partner was 1C Rating.

Stages of the information system implementation project:

• pre-design survey;
• customization of the system based on the technical specifications for the specifics of the company accounting;
• training of users in group trainings;
• Deploying and configuring information systems
• transfer from previous accounting systems, structuring reference information;
• test start-up and adjustment based on pilot operation results;
• start-up and user support.

The following accounting sections are automated during the project:

• accounting (bank and cash register, settlements with counterparties, inventory, trade operations, production operations, fixed assets, intangible assets, payroll and personnel accounting, period completion, regulated reporting);
• tax accounting;
• finance, management accounting, budgeting, financial planning;
• HR and HR Accounting (HRM) - HR, Payroll, Time & Attendance
• Warehouse Inventory Management, Product Sales Accounting
• mutual settlements with buyers, mutual settlements with suppliers;
• production, services - production cost accounting, actual cost calculation, asset accounting, depreciation calculation.

Main Project Results

Accounting and production accounting subsystem

• automatically calculates the cost of wells and fields (previously calculated manually)
• it is possible not to wait for the final calculation of the cost of the finished product, to carry out the arrival and all movement of the finished product at the planned cost. And after the month closes, the program automatically adjusts the cost price to final. All this allows you to significantly save the time of the accountant
• advances received and issued are closed automatically, which significantly saves time
• fixed assets: factor for depreciation calculation by the production method, calculated automatically, after the monthly production is entered in the program, previously calculated manually
• convenient to prepare payments for suppliers using the "list of settlement documents" and select unpaid invoices, upload from 1C and upload to online banking
• taxes: very convenient to generate declarations, especially f 200 and 210, monitoring report, automatic calculation saves time and eliminates the possibility of error

Feedback from the head of the tax accounting department, Meiramkul Darisova: "First of all, we would like to say that we enjoy working in the 1C program. This program is very transparent, it is possible to form roundabouts, reports and analyses as we need it and as we want to see. "

Payroll Subsystem

It is possible to generate various payroll reports. The calculation of holidays and sick leave is automated plus the further generation of a report on these calculations. The main plus is that in 1C you can analyze the number of days and the period when an employee was on vacation or on sick leave.

The relationship between personnel and settlement documents helped reduce the time to interact with employees of the personnel service, since all the information of interest can be displayed and analyzed in the program.

Large and voluminous calculations of overtime and leave reserves are automated. Calculations are based on the results of work for the year, earlier it took a lot of time. We hope that 1C will help us to make calculations more quickly at the end of the year.

Previously, the timesheet was provided on paper, and payroll was calculated in the previous accounting system, since the data were not stored in the common system, it took a long time to calculate. The relationship between personnel and settlement documents is once again noted here. At the moment, the personnel person generates a Table in 1C, after which accruals are calculated automatically.

Taxes are calculated automatically and almost do not require verification, information is transparent and you can display a report on the calculation results.

The payroll mechanism is conveniently automated. In order to pay wages in the established information system, there is a special document that takes away all necessary deductions and calculates the amount that an employee must receive automatically.

The opinion of pay specialist Daurenbekova Victoria: "According to the results of the implementation of 1C, positive emotions remained! If we summarize the implementation, we note that the most important thing is that the time spent on payroll has decreased. Earlier, it took 10 days to clear wages. Now it takes 5 days. Probably, it takes more time to take into account the nutrition, if you once again think through the scheme, how you can automate it and make it as convenient as possible, the number of days would be reduced from 5 to 4. "

Budgeting subsystem

The company budget consists of several sections, therefore, the budgeting module is implemented and automated:

• Production and revenue budget
• Capital Expenditure Budget
• Operating Cost Budget
• Implementation Cost Budget
• Budget of planned taxes
• Planned Remuneration Budget
• Administrative Cost Budget
• Budget of planned expenses of the liquidation fund
• Planned Training Cost Budget

These budget items (with the exception of the planned costs budget of the liquidation fund and the planned costs budget for training) were implemented by 1C Rating employees. The objective of the implementation was to increase the transparency of accounting and reduce reporting time in order to conduct analyses of planned tasks as soon as possible.

This goal has been achieved. Employees of the company 1C Rating, understanding the tasks assigned to them, systematically built a scheme for implementing budget planning. Many developments were carried out in the context of the budget provided. I would like to note the work of Elena Shcherbinina, who, understanding the essence of accounting and the essence of management accounting, helped specialists from the Department of Economics and Budget Planning successfully choose the necessary information.

Feedback from the head of the Department of Economics and Budget Planning, Batima Yakhyaeva: "During the implementation process, a lot of difficulties were encountered and successfully solved, due to the specifics of the company's budget. I am sure of fruitful further work with your team. "

Functional currency accounting subsystem

To maintain parallel accounting in tenge and dollar equivalent, the functional currency accounting module has been implemented.

The implementation of this module made it possible to see each journal entry in dollar equivalent. Previously, specialists had to update alternately first the tenge accounting, then the dollar accounting, while there was no transparency and there was no way to track the exchange rate on the posting date.

Conveniently, when you close the month, the currency revaluation is calculated in parallel and you can track how each accounting account is revalued, which accounting transaction is included, including analytics. If you close advances, you can also see at what historical rate the advance closed.

The working balance sheet, analysis on accounting accounts and other necessary information can be generated both in tenge and in dollars, which is convenient when forming various analyses and preparing financial statements in the future.

The program took into account as much as possible all our wishes regarding the existing difference between tenge and dollar accounting. For example, one buff transaction in tenge and dollar accounting "sits" in different accounts.

I would especially like to note the joint work with Kushakova Elena. Each time, addressing her with a particular question, she received an accurate and professional answer. All the modifications, settings of reports and many of our wishes, visions of this or that information were set up clearly, as we needed. We highly appreciated her professionalism, speed and sense of responsibility to the client.

Gulzhamal Utebergenova, head of the accounting department: "In general, only positive results were obtained from the implementation of the 1C program. All planned expectations from 1C during the implementation phase have been achieved. The period for preparing data for financial statements has been reduced from 3 days to 1 day. "

Further plans include automation of preparation of financial statements in management accounting, automation of generation of cost of goods sold in terms of cost item.

Summing up the project, we can say that the goals set for the implementation of the accounting system have been achieved. Emir Oil employees are very pleased with the professionalism of 1C Rating specialists! Upon completion of the implementation, the system is converted to post-project maintenance, maintenance and user support.

The system was put into industrial operation on June 1, 2015, the number of automated workplaces is 30.