Petrovich upgraded management accounting based on 1C together with Corus Consulting and EY

2020: Upgrade of management accounting based on 1C

On August 25, 2020 the CORUS Consulting company reported that it together with EY transferred STD "Petrovich" to a single system of financial and management accounting. Upgrade and business process automation, rapprochement of all types of accounting allowed to reduce terms of formation of the consolidated management reporting, to increase its quality. As a result of optimization of IT solutions "1C: Trade Management" and "BIT:FINANS" employees can calculate monthly cost value for 30 thousand SKU in only several hours, and within a month – to trace a margin on a daily basis. The accounting system supported omnichannel business of STD "Petrovich" in terms of settlement with clients and cost efficiency analysis on each of sales channels of DIY network.

According to the company, in the conditions of economic instability for large business to the forefront there are a speed of management decisions, expense optimization, cost control, fast correct cost accounting. But owing to specifics of the legislation at the companies often there are discrepancies between accounting, tax, management accounting and also IFRS. Parallel maintaining, the data and reconciliation of the reporting reduce the speed of its formation and increase the volume of operating expenses. At the same time omnichannel complicates problems of accounting and cost accounting: at a set of sales channels and the complex circuit of purchases and deliveries, the DIY network should estimate precisely and effectively distribute the costs, it is correct to conduct settlement to provide better service to clients.

STD "Petrovich" achieved "the uniform version of the truth" on all types of accounting and accelerated formation of the management reporting based on the current IT solutions. The project was executed by specialists of CORUS Consulting Group and own team of the retailer, the methodological recommendations of the international auditor and consulting company EY were taken as a basis. The maximum rapprochement of all types of accounting and unification of accounting policies allowed to minimize adjustments and by that to accelerate closing of month and reporting for management – up to 15 days, in the long term terms will be reduced to 10 days.

In a project deliverable of a system process from 2 to 3 million documents a month, reflecting them in operational, accounting, tax, managerial accounting and IFRS. Procedures of budget and treasurer cost control are automated. Robotic delivery of bank statements for 6-10 thousand documents is executed in STD "Petrovich" of all for an hour. Also specialists of Corus Consulting developed a number of technical solutions for the loaded systems which accelerated signing up in 1C to 2500 postings per second.

In omnikalny service depth and quality of analytical control is of great importance. During the project the 7th is implemented finasovy the analyst for tracking of indicators of DIY network in different cuts: including on sales channels, segments, the CFD, nomenclature groups.

Effective price policy – one more crucial moment in work of the companies with a good selection. Conditions in the market constantly change, and costs for the same product depend on a set of factors: from seasonal fluctuations of purchase prices, different delivery conditions, sales channels. The distorted and indefinite values of cost value do not allow to create goods prices correctly that can lead to losses.

Therefore, upgrade of model of cost accounting became a separate stage of the project for STD "Petrovich". CORUS Consulting increased the accuracy of pricing of DIY network and provided control of marginality of each commodity unit. The basis of model was formed by the recommendations of EY to calculation methodology based on the Russian and world industry practices.

Calculation of monthly cost value is configured taking into account exceptions to the rules – transit transactions and purchases at foreign suppliers. For transit deliveries cost accounting by agreements is implemented, and the monthly report on a margin by batches of import goods is developed for foreign trade activities. Thanks to daily monitoring of a margin it was succeeded to increase quality of pricing and speed of data acquisition about cost value of goods for business users. The staff of the company can receive automatically the analytical reporting at cost of goods, so, quickly react to change of purchase prices and in time make corrections.

The global project of STD "Petrovich" on unification of methodology of financial accounting and creation of the centralized control system gave to our company the following: we reduced the costs connected with parallel conducting accounting, received based on 1C the tool for control and the analysis. That most important: systems with higher quality and quickly prepare the management reporting. We are grateful to commands of Corus Consulting and EY for expert approach, attention to our business objectives and a certain courage in implementation of tasks. Galina Nesterova, the chief financial officer of STD "Petrovich" noted

The updated methodology of calculation of the weighted average cost value in "1C: Trade Management" allowed to reduce sensitivity of pricing to jumps of purchase prices and "the last expensive batch". Also, specialists of Corus Consulting carried out work on optimization of solution performance: now the staff of Petrovich can calculate the weighted average monthly cost of products of everything in several hours. For daily pricing the company uses the operational tool which issues information on a preliminary margin on each SKU. Anastasia Reshetnikova, the director of consulting of department of 1C of CORUS Consulting Group told

This project became an important step for STD "Petrovich" to increase in transparency and controllability of business. In the project there were effective objectives both on a tranformation of processes, and on automation, review of methodology and data management. On the way to implementation of similar projects all companies meet essential organizational and technical difficulties which overcoming requires both resources, and competent management. Inflexible will of the management and specialists to transformation and improvements, the principles of partnership and command spirit in the company and also ability to undertake difficult tasks and to do everything possible for their solution became key factors of a project success in STD "Petrovich". Anton Lezhenin, the director in department of consulting services of EY told

Project of upgrade of financial accounting not the first experience of cooperation of CORUS Consulting Group and STD "Petrovich". Earlier projects on reorganization of warehouse logistics for distribution centers on the Manhattan SCALE platform and to implementation of CRM on the Microsoft Dynamics 365 platform were implemented.