Asteros optimized the reporting under a technique of RAB in IDGC of Ural

December 10, 2014. The Asteros Consulting company (enters into the Asteros group) provided automation of fixed asset accounting and the reporting under a technique of RAB in "Interregional Distribution Grid Company of Ural". The solution of Asteros developed based on the SAP ERP platform is implemented in all regional branches and head company "IDGC of Ural".

Choosing a Solution

Strategic task of the largest company of the heat power industry is consolidation of network complexes of municipal entities with networks of JSC IDGC of Ural for creation of uniform power grid space in all territory of presence. For this purpose the management of IDGC of Ural initiated the project on transition to the new investment strategy which is based on a technique of RAB (Regulatory Asset Base, regulated base of the invested capital).

Following orders of the Government of the Russian Federation and the recommendations of Federal Tariff Service, since 2011 all branches "IDGC of Ural" passed to long-term tariff regulation according to a technique of RAB (Regulatory Asset Base). RAB is aimed at attraction of additional investments into development and upgrade of power assets. Formation of a rate for transmission of energy by this technique allows the company to return gradually invested funds and percent for the attracted capital. Consumers, in turn, have an opportunity to plan expenses on the electric power on the long period and also to influence the level of service, estimating reliability and quality of the services provided to them.

Project Progress

In August, 2012 IDGC of Ural and Asteros started implementation of a technique of RAB in a corporate system of SAP ERP. For this purpose in addition to already implemented fixed asset accounting consultants of Asteros developed the solution on maintaining parallel value assessment of objects. According to a new technique assessment of objects throughout all term of their operation, including business processes of automatic formation of base of the invested capital for the capital investments, item-by-item accounting of the capital throughout all term of return, leaving of objects from structure of the invested capital and also formation of the regulated reporting under a technique of RAB is conducted.

Solution integration was executed at the same time in all branches "IDGC of Ural": Sverdlovskenergo, Permenergo and Chelyabenergo. Project duration was 11 months from which development and deployment took 6 months, and remained 5 formation of the regulating reporting and introduction of adjustments based on approval of the Regional Power Commission (RPC) were taken away on maintenance of users during the work in a system.

In addition to solution development, RAB conforming to requirements, the command of Asteros was faced by a task to provide a possibility of his scaling under additional tasks of IDGC of Ural. Also specialists of Asteros needed to create uniform regulations of interaction of divisions when accounting assets in the existing corporate system of SAP ERP and to train the employees who are carrying out the accounting of assets by a technique of RAB, work with a system. At the same time implementing solution went in a productive system in the middle of financial year. It demanded from Asteros of special attention to parts and the maximum accuracy of an adherence to deadlines in order to avoid risk of a stop of a system and distortion of the obtained data.

Result

According to the results of the project in a corporate system of SAP ERP of IDGC of Ural the single system of accounting of assets allowing to keep parallel account according to financial techniques (accounting and tax accounting, IFRS) and also an economic technique of RAB is implemented. The solution on fixed asset accounting and the reporting according to the standard IFRS "IDGC of Ural" was also developed and implemented by Asteros company based on the modules SAP ERP FI-AA, IM and PS.

Automation on the SAP ERP platform provided transparent accounting of objects by a technique of RAB in which all data are based on the actual transactions reflected in a system that simplified the procedure of reporting and approval of provided data in REK. Besides, the solution of Asteros allowed to increase financial stability of the company and for 56% to provide with own means financing of an investment program. In the long term the project – automation of calculation of values of a gross revenue with a possibility of modeling for the years ahead depending on the current indicators that will allow to do more exact forecasts for strategic planning of activity of the company.

The project allowed to increase transparency of accounting of assets according to a technique of RAB, to optimize expenses and also to reduce time for preparation and approval of the reporting for the Regional power commission.

"Unlike Europe where the technique of RAB is also successfully used long ago, in Russia it is applied since 2009, but already managed to prove as effective solution for the generating and distribution companies, – Yulia Grechishcheva, the manager of projects of Asteros Consulting comments. – Examination of practice of SAP in combination with the progressive ideas in the field of attraction of additional investments allowed us to design and implement the full solution covering all requirements of a technique of RAB for accounting of fixed assets on the SAP platform in the shortest possible time without production stops. This solution is standard and can be applied by other generating and distribution companies in Russia which in the majority use the SAP platform".

Representatives of the company integrator reported TAdviser.