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Modern accounting tools allowed to detail cost structure

Construction
Modern accounting tools allowed to detail cost structure
scale5,000 employeeskpiincrease the efficiency and effectiveness of pricing processes
ProductAccountingProject time1 year
year of briefcase2017geographyUkraine
IndustryConstructioncustomerIBG "Kovalska"

Project Goals

The industrial and construction group Kovalska is one of the leaders of the construction industry in Ukraine. The group includes 7 plants that manufacture building materials, and the total number of employees exceeds 5 thousand people.

All production sites of plants belonging to the Kovalska group are automated, and the enterprises are unified under a single information system using the IT-Enterprise - Ukrainian ERP.

 

Since 2011, the plants of the group for accounting use the IT-Enterprise ERP system. One of the largest plants of the group has implemented the IT-enterprise with the help of external consultants. Other enterprises of the group just scaled the solution with the help of its own IT department.

The Terminal-M plant is a part of the Kovalska Group. It produces products under its own trademark SILTEK. Prior to the project, information about the plant’s activities was not reflected in the group’s integrated IT system. Management of the plant had two tasks - to update the functionality of the ERP system of the IT-Enterprise and to implement the new functionality for managing logistics and accounting tasks, which would provide access to modern, advanced tools of interactive financial analysis, etc.

The group includes a large number of legal entities, and their activities also vary: the Kovalska Group have factories, quarries, a motor transportation company, etc. Accordingly, a document workflow implemented at different enterprises of the group is adapted to their individual characteristics.

Project Description

A feature of this project is the very short deadlines for its implementation. The project was completed in 4 months, while the business models were developed from scratch and agreed with the customer in 1.5 months!

During the project implementation, it was necessary not only to replace the existing functionality with a new one. As in any fresh project, the business process modeling stage was implemented. Since the implementation of the previous solution have passed about ten years, so some business processes have changed. For example, in this project was significantly detailed the set of articles for cost accounting.

Earlier company calculated the cost by the products types, now plant calculates the unit cost. This increase in the detail of accounting makes the processes predictable and improves the manageability of the enterprise.

Results

During implementation, the company switched to modern management ERP functionality. At the same time, the accounting model of the enterprise was changed:

  • the methods of collecting and closing costs have been changed;
  • has been made a transition from calculating the production cost by product type to calculating per unit production cost.

As a result of the new functionality implementation, achieved this result:

  • through business processes of document workflow with the distribution of access rights and storage of electronic original documents has been built;
  • integration into corporate financial, statistical and tax reporting;
  • interactive analysis tools with the ability to drill down to the original document has been implemented.

Project completed successfully. With new functionality, accounting for the third quarter of 2017 was implemented in the new system. It became a base for reporting to government bodies.

High quality and tight deadlines of the project implementation enabled to transfer to the new functionality of logistics and accounting tasks of another 5 production plants of the group.

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