Nizhpharm - STADA CIS (SAP BW/BI-IP)

On August 30, 2010 a pharmproizvoditel STADA CIS and TeamIdea company announced a gogd project completion on system implementation of planning and budget performance monitoring based on SAP BI-IP.

Mergers of companies of holding in uniform structure before STADA CIS financial service resulted from a task of transition of new business units (MAKIZ-FARMA, SKOPINFARM) to new corporate standards and also formation of the consolidated statements according to standards of the STADA Group for all holding STADA CIS and the Baltic. Also it should be noted that as a result of organizational conversions volumes of the processed data financial service essentially increased, processes and procedures of planning and consolidation became complicated and also the number of participants of process and cycle duration of approval increased.

In this situation traditional means of "automation" of budget process — Excel, from the convenient tool turns into a restraining factor, there are following problems:

• large volumes of data result in inconvenience and slow work of Excel;
• automatic consolidation of data from business units is complicated;
• the analysis is impracticable the plan fact;
• accuracy of the data decreases because of a possibility of intended or accidental violation of Excel of formulas and data;
• simultaneous multi-user work is impracticable;
• tracking and recording of changes, separation of powers into change and data analysis is impossible;
• budget process has no means of the automated control.

In 2009 in NIZHPHARM company the SAP ERP system for process automation of production, logistics, accounting and management accounting was implemented. In other companies of holding at the moment for these tasks other systems are used (1C, BAAN).

As a result of carrying out the closed tender for creation of a planning and budgeting system the TeamIdea company which suggested to implement these tasks based on SAP BW/BI-IP was selected.

The project started in 2009 and was fully completed in rather short terms – within 10 months. Within the project on automation of budget process and control of its execution in STADA CIS holding the packet of interfaces of users was developed for maintaining all types of operating budgets and also additional subsystems of calculation of the wages fund, depreciation charges and cost accounting of products based on process charts. Implementation of model of consolidation according to the rules of management accounting adopted at the enterprise became one of key solution components. The created interfaces of collecting and transformation of actual data allowed to process all primary information obtained from the different accounting systems of the enterprises of holding in short terms.

As a result of system implementation of planning and budget performance monitoring based on SAP BW-IP the STADA CIS company received:

• effective tools of processing and the analysis of planned data and data of primary accounting, according to the principles and approaches of holding regarding calculation and assessment of a financial result both separate companies, and holding in general;
• reduction of terms of budget planning and dates of receipt of the consolidated statements twice;
• possibility of simultaneous calculation of several versions of budgets;
• possibility of data entry by the employees who are directly responsible for control of certain budgets of divisions;
• exception of errors of primary input and increase in reliability and reliability of data of budgeting, due to use of uniform reference books of NSI and rules of calculation;
• uniform storage of planned and actual data of all divisions of holding in independence of the used system of primary accounting.

Distinctive feature of the used solution, the possibility of calculation and modeling of planned cost of each unit of production and also impact assessment on a financial result of indirect and direct costs of production and non-productive divisions is.

"As a result of cooperation with TeamIdea we received a convenient and powerful planning and budgeting system, removed from financial service the mass of routine tasks of maintaining data and to calculations..." Budylin Dmitry, the head of information technology, NIZHPHARM, Nizhny Novgorod, STADA group noted.