“KazMunayGas” JSC NC (KMG) - is the Kazakhstan operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan. Samruk-Kazyna National Welfare Fund JSC owns 100% of the KMG shares. Unified consolidation system operates since 2012, the basis of this system is the unified catalog of indicators, used for financial reporting transformation.
Holding structure includes more than 300 companies with accounting systems based on the “1C:Enterprise 8” and other software products.
Business Challenge
- The need to improve audit, timeliness, and detail of the subsidiaries data
- The need in the unification of accounting and data transformation techniques
- Avoiding manual input of financial reporting
That`s why the company management decided to implement a unified information system on the basis of ”1C:Consolidation 8” software product.
Within the developed system:
- Chart of Accounts and its mapping mechanism developed
- 72 reports transformational model developed
- Automatic system of data transfer between the consolidation system and accounting systems of subsidiaries developed
- Integration with consolidation system ensured
Project objectives and tasks
- To ensure the system stability and system user-friendliness in case of annual gain of up to 10 companies, within the ICFRS
- To improve financial control and data monitoring of subsidiary organizations by the improvement of financial reporting level of autofill
- To develop a set of regulations
In order to implement these objectives a 15 people working group was formed. The task of the group is daily system maintenance and consulting of more than 200 users, fully satisfying the requirements of the SLA (Service Level of Agreement).
The “Service Desk”- class system, based on 1C: Enterprise 8 was developed and successfully implemented for registration and analysis of incidents and service requests.
Project results
The project team implemented a number of tasks for system development and reporting quality and terms improvement:
- Optimization of mechanism for reporting filling performed (performance gain rose by ~20%)
- Development of a tool for reporting quality analysis and autofill level estimation
- Development of regulations and guides (more than 50 documents)
Automation on the basis of “1C:Consolidation 8” allows the company to receive the subsidiaries financial reporting within the prescribed time limits, in the automatic mode as well as:
- To organize centralized collection and unification of data of subsidiaries in the unified system
- To manage reporting delivery processes and to analyze the quality of the data
- To greatly shorten the reporting preparation time
200 workplaces automated.
Krenkel E.T., managing director of information technology, “KazMunayGas” JSC NC:
“The following are planned: further improvement of productivity indicators, development of Charts of Account sections functionality and model, automation of data collection, non-automated at present, and improvement of maintenance quality including the ensuring the project by knowledgebase, available for all users”.