KazMunaiGas is processing and marketing (SAP BusinessObjects EPM)

The large-scale joint project of JSC Oil Company KazMunaiGas BPC and TeamIdea started in the fall of 2011. According to the management of JSC Oil Company KazMunaiGas, the software of SAP is capable to provide to the company achievement of its strategic priorities:

• implementation of a transparent financial structure;
• acceleration of the procedure of consolidation and formation of the consolidated statements;
• development of effective management within all group JSC Oil Company KazMunaiGas.

The big holding with complex structure of subordination required creation of in details thought over solution architecture. As a result of the deep analysis of the available products, the project team of specialists made a choice for benefit of the latests version of the SAP products Business Objects EPM:

• SAP EPM Intercompany 10.0
• SAP EPM Financial Consolidation (FC) 10.0
• SAP EPM Financial Information Mgmt (FIM) 10.0
• SAP Business Objects BI platform (BOE) 4.0

The general project duration was 9 months from the moment of the first meetings with the customer (July-August, 2011) before productive start – 1 quarter 2012. Support of productive start and parallel development of a system took 2 more months. Together with key users the special implementation methodology since proceeding from features of a product, the standard methodology of ASAP demanded some adaptation was developed – the focus was shifted to design stages and system testing at rather small time expenditure on development. The independent company of methodologists who took part in final study and approval of the document was in addition involved. By the subsequent preparation of project solutions SAP Starter Kit created using world Best practices was taken as a basis and imposed on the developed methodology of the client. The quality of the final project solutions which formed the system basis was confirmed with PwC company as a result of the carried-out Quality Assurance.

In view of features of implementation of new products, the accountable governance the project was undertaken by the CEO of TeamIdea company.

During the project specialists faced two "cornerstones": deep detailing and scale. The volume chart of accounts (more than 3 thousand positions, the 9th analyst) on the one hand and need of the fastest full-scale implementation (without pilot and circulation) – with another, was demanded from consultants of TeamIdea of 100 percent concentration and return: during the first data entry almost round-the-clock user support was organized, more than 300 people were trained in work with the Intercompany and FC system.

The first, only 2 months later after the beginning of the project, the SAP EPM Intercompany 10.0 system started. A system very well proved in operation. She easily is implemented, demands a maintenance minimum, users begin work practically after one input practical work, thanks to the intuitive Web interface.

Result of use by holding of a system of reconciliation of intra group calculations – reduction of terms of closing of the period twice.

When implementing the SAP EPM Financial Consolidation 10.0 system the decision to enter all data for the previous 2011 for creation of a remaining balance in a system and working off of processes was made (comparisons of the results received earlier in Excel with results in a system). The effectiveness of this step by right was estimated by the client as necessary and sufficient condition for guaranteed correct system operation.

The productive start of a system took place on data of the 1st quarter 2012, consolidation, in parallel with consolidation in Excel was calculated, and unloading of data in the head company is fulfilled. At this stage were finished control on data entry according to requirements of superior organization which more than 300 in total turned out.

Consolidation in a half-year was completely carried out in a system – the client was convinced on the basis of the previous stages of correctness of working off of all processes, available all reporting and of correctness of unloading of data in superior organization.

Project Results:

Implementation of a transparent financial structure of the company, acceleration of the procedure of consolidation and formation of the consolidated statements and also development of effective management within all group JSC Oil Company KazMunaiGas became the main project deliverable for JSC Oil Company KazMunaiGas.

Start of the Intercompany and FC systems allowed:

• Reduce terms and increase quality of training of Acts of reconciliations of VGOO between the companies of group.
• Reduce terms of collecting of financial performance of separate companies of group and increase their quality.
• Reduce time of obtaining the consolidated statements of group.
• Raise an audiruyemost of the provided reporting.

As a result, today KazMunaiGas has an opportunity to consolidate the separate reporting provided in 10 different currencies, in 17 perimeters of consolidation and also to see the consolidated data of subholdings in the reporting and has access to detailed data to the most bottom level.