The project goal was automation of purchases, production, operational and local accounting to migrate from another vendor accounting system to 1C:ERP as soon as possible.
Automated workplaces
1С:ERP
• ERP
• FRP
• Local and tax accounting
• Purchases, supply management, and vendor relationship management
• Warehouse management system
• PLM (Product Lifecycle Management) /PDM (Product Data Management)
• Manufacturing Execution System
• Master data management
• Property management
• Technology: Remote implementation
Metallurgical industry
VNTS LLC is a joint enterprise of NewTech Services Holding Limited, an international oil service company, and Varel Energy Solutions (Varel International), one of the leaders in drill bits manufacturing. VNTS produces a wide range of matrix- and steel-bodied drill bits with polycrystalline diamond cutters (PDC) for drilling and gas wells. Wide distribution network of drills bits around the world proves their high quality and correspondence with international standards.
Nowadays, importer countries of drill bits with PDC produced by VNTS include
Accounting features:
Before implementation, accounting was kept manually, because the previous system was revoked by the vendor in the producer’s country.
It was detailed, multi-production, and complicated accounting with cost calculation. Data was gathered and entered into an ordinary spreadsheet file. This resulted in a chain of issues: high labor intensity, delay in the delivery of files, irrelevant data and errors caused by human factors.
100% of works on the 1C:ERP implementation were remotely performed. It includes a main implementation, support, and refinement.
Some partial data could be uploaded to Excel before disconnecting the other system. Our team supplemented this data with the missing data and uploaded it into 1C:ERP
1C:ERP WE is a comprehensive information system for managing every company activity. This innovative solution uses a comprehensive approach to business management, the best international techniques and long-term implementation practice of similar systems. That guarantees flexible customization, usability and significant economic effect.
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The project team performed several works on technical and methodological adaptation of standard solution. It includes:
1) Customizing the accounting policy of the organization
2) Entering and loading Master data: banks, bank accounts, items, fixed assets, contractors, etc. Loading Master data was formed based on completed Excel templates.
3) Entering and loading opening balances. Loading was formed based on Excel files provided for all local and tax accounting accounts. Our team performed a lot of work to adapt the provided Excel files from the previous accounting system into templates for balances loading into 1C:ERP. So, we made a technical specification for balances transfer.
• Fixed and intangible assets
• Capital investments
• Materials
• VAT
• Vendor AR/AP
• Customer AR/AP
• Creditors and debtors AR/AP
• VAT on advances
• Future phase costs
• Cash flow
• Capital
• Materials for responsible storage
• Work in progress by orders
• Deferred tax assets and liabilities
4. Consulting and methodological support of users on working with the system:
• Prepared a training program
• Prepared workshops for users
• Prepared a training base with examples for users' work
• Provided training on Local and Tax accounting, Production and operational accounting
5. Adaptation
• Method of work with toll raw materials
• Method of responsible storage
• Method of assembly/disassembly
• Consolidation of tolling reports into a single document
• Method of labor costs calculation by works with distribution by types of works
• Method of monitoring and completion of production stages with partial releases and additional cost write-offs in subsequent periods
• Method of work-in-progress balances monitoring
• Quality control/quality certificates and material quality control
To date, the following operations have been performed at the company:
• A full accounting of the production process between departments on an order-by-order basis
• Simplified entry forms
• Quantitative-qualitative output and transmission
• Output/transmission of finished and semi-finished product in real time
• Processing/receiving tolling orders
• Performing cost calculation
• Building a production tree by linking a set of properties of characteristics
• Providing an uninterrupted supply of raw materials and supplies
• Meeting production deadlines
• Ensuring transparency of management processes and higher accuracy of decision-making
• Monitoring the financial and business activities of the enterprise
• Increasing the accuracy, reliability and quality of accounting
• Monitoring labour costs
• Consolidating information generated and processed in different subsystems
• Integrating information on all areas necessary for accounting
• Ensuring the possibility to receive up-to-date updates on legislative changes
Due to the implementation of the 1C software product, the company has a modern information system that ensures transparency of the main business processes. It has become possible to monitor production costs, more clearly record and categorize products, and reflect them in documents. You can follow the entire chain of products and materials flow. The program provides tracking of order approval stages, specification of delivery conditions, and monitoring of delivery status. The company's management received a tool for clear cooperation with suppliers, receiving timely information on the state of stocks, the need to replenish them, and the possibility of reducing costs.
The main goal was to produce a quality product that would maintain the company's high reputation. Our team completed this goal.
1C:ERP includes:
• Local accounting
• Bank and cash accounts
• Contractors AR/AP
• Income and expense rental accounting
• Fixed assets
• Period closing
• Local reporting
• Tax accounting
• Manufacturing accounting
• Warehouse (operational) accounting
• Management accounting
• Treasury