NPK Biotest has implemented 1C: ERP Enterprise Management 2 for Belarus

2022: Implementation of "1C: ERP Enterprise Management 2 for Belarus "

On January 18, 2022, 1C announced that SoftService specialists automated the work of a private pharmaceutical company, LLC NPK BIOTEST. With the help of the system "1C: ERP Enterprise Management 2 for Belarus," operational management of production was organized, traceability of batches of raw materials was ensured, and quality control of finished products was strengthened. It takes 2.5 times less time to calculate production costs. The calculation of selling prices for products according to complex industry algorithms is optimized. Buyer orders are processed and executed 10% faster.

According to the company, previously for regulated accounting, warehouse management and retail trade , the company used outdated and unrelated information systems. Procurement, sales and production management has not been automated. Spreadsheets were used to calculate the cost price. It was difficult to plan the work of production units, control the consumption and residues of raw materials, equipment loading and production. It took a lot of time to get the data necessary for the formation of selling prices and the calculation of profitability.

The company needed another information system that would help speed up the processing and fulfillment of customer orders, strengthen control over all stages of the workflow from the purchase of raw materials and the production of semi-finished products - to the production and sale of finished products. It was required to organize accurate cost accounting and calculation of the cost of each batch of products, taking into account the cost of raw materials and archival samples, laboratory costs and other parameters. In addition, it was necessary to ensure the rapid preparation of shipping documents in accordance with industry requirements and to speed up reporting to management.

The system "1C: ERP Enterprise Management 2 for Belarus" was chosen to solve the tasks. The implementation partner was SoftService LLC.

During the project, which lasted 2 years and 11 months, a pre-design survey and modeling of key processes in the updated system were carried out. The typical localized configuration has been adapted to the industry characteristics of the enterprise. In particular, the following were implemented: automatic calculation of the price of "ROC" (settlement and sale price) and setting of prices dependent on the ROC, taking into account the limit of trade allowances regulated by the Decree of the President of the Republic of Belarus of June 21, 2016 N 228. The formation of departmental and statistical print forms and reports is set up. A functionality has been developed to allocate additional costs when reflecting the write-off of archival and laboratory samples to the cost of production. Processing for loading initial data is implemented, data is transferred from old programs.

Key project results:

• The updated system combined the work of the company's administrative, production, wholesale and retail trading divisions. The system reflects in online mode all information about purchases (including imports), wholesale and retail sales, banking, cash, production and warehouse operations. Management was able to monitor units in real time.
• Operational management of production is organized. The quality control of finished products has been strengthened. At each stage of production, data on the series of raw materials used, performers, laboratory test readings are recorded in the system. In accordance with the requirements of the Decree of the Ministry of Health of the Republic of Belarus dated 15.11.2019 No. 1360 "On the Organization of the Work of Control and Analytical Laboratories for the Control of the Quality of Medicines," storage of control samples of each batch of manufactured products has been organized for several years. At any point in time, the system can quickly obtain accurate information about the manufacturing process of each particular batch used in its production of raw materials, and laboratory tests carried out.
• The calculation of the cost of production takes 2.5 times less time, since all the data is now recorded in the same system, and the calculations are automated. Operational calculation of the preliminary cost of products produced from imported goods, taking into account the cost of purchase, as well as all additional costs for the purchase of goods and customs costs for obtaining calculated selling prices (ROC), was implemented. Detailed accounting of laboratory costs and allocation of these costs to specific product series is organized. It is possible to receive information about the cost and profitability of sales of each name, and not only by product group.
• The system implemented algorithms for the formation of calculated selling prices for products, taking into account the requirements of the legislation of the Republic of Belarus. Based on estimated selling prices, the system automatically generates selling prices for imported goods and list wholesale prices. The calculation of these types of prices is difficult, since it is necessary to take into account all costs for each series of specific purchased goods, algorithms for applying margins and limiting the size of margins. Automating this process saves sales time and eliminates calculation errors.

In addition:

• The methodology for maintaining regulated and managerial accounting has been unified. This optimized the preparation of analytical reports for management on output, production costs and cost structure, accounts receivable and payable, gross profit and financial result. Reporting is 20% faster.
• The exchange was implemented with the industry accounting system for retail on the 1C: Enterprise platform. From the industry system to "1C: ERP for Belarus" information on receipts, sales, movement of goods between pharmacies is transmitted. Based on this data, 1C: ERP for Belarus maintains the total accounting of retail tax transactions of retail outlets, which helps to quickly plan and monitor the operation of remote pharmacies.
• Automated generation of consignment notes, including filling in the note fields with information about the prices of the ROC, markups provided to the client with discounts.
• Personnel accounting and payroll of employees is automated, including the formation of printed forms of orders, calculation of piecemeal salaries according to production data, payment amounts of vacation balances and bonuses for purchase orders.
• Automatic exchange of payment data with the Client-bank system and data on incoming and outgoing electronic invoices with the national Portal of electronic invoices for VAT has been implemented. This eliminated the need to manually duplicate information on the portal to provide VAT data.

The unified integrated system "1C: ERP for Belarus" made it possible to more effectively manage the working time of employees, optimized our work in such areas as accounting, production accounting from the purchase and receipt of raw materials to the production of finished products. Orders are processed and executed 10% faster. We receive detailed sales information across all distribution channels. All operations are reflected in one system online, which allows end-to-end control and monitoring at all stages of release. said Rysenko Alexander, commercial director of LLC NPK Biotest