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Before implementation, accounting was kept manually, because the previous system was revoked by the vendor in the producer’s country.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