KoderLine

NewTech

Implementation of 1C:ERP in VNTS, a part of NewTech Services Holding Limited

AUTOMATED WORKPLACES - 25

Implemented product:

1С:ERP

PROCESSES

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


INDUSTRIES

Metallurgical industry


PROJECT DESCRIPTION

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.


BEFORE IMPLEMENTATION

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Before implementation, accounting was kept manually, because the previous system was revoked by the vendor in the producer’s country.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

ADDITIONAL INFORMATION TO THE PROJECT DESCRIPTION

The project team performed several works on technical and methodological adaptation of standard solution. It includes:

Customizing the accounting policy of the organization

Entering and loading Master data: banks, bank accounts, items, fixed assets, contractors, etc. Loading Master data was formed based on completed Excel templates.

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


PROJECT RESULTS

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


IMPLEMENTED SOFTWARE PRODUCTS

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

 

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