Executives choose 1C:ERP to run their business more efficiently, optimize expenses and increase profits
Top managers select 1C: ERP to make their business more efficient, cut costs and maximize revenues. But despite this program’s progressivity and efficiency, it is a very complicated system that needs to be correctly configured and customized for one’s own unique processes. Thus, 1C: ERP is either modified by efforts of staff developers, or one can apply for this service to contractors and franchisee.
Specialists from Neti have been attracted to projects of 1C: ERP implementation and modification since 2015. Hereunder you can find several cases about the difficulties one can face during 1C: ERP support or transition from other configurations and how a correctly set ERP increases the efficiency of business. The names of client companies are hidden due to NDA requirements, but we can describe the tasks, given by them.
The clients that have already implemented the program apply to us for we fixed the transition bugs, trained the personnel to work with the system or modified the functionality.
To correct bugs in regulatory accounting Customer: manufacturer of plastic decoration elements with already implemented 1C: ERP Project date: summer of 2019 Task: after transition to 1C: ERP there appeared errors in accounting that the previous contractor could not correct. We were asked to find errors in regulatory accounting and in financial reporting under IFRS, to explain the causes of their occurrence and to point out how to fix these bugs and to further avoid them.
We found out that many errors in the system appeared due to incorrect transition of a product range from one state to another. The customer’s founder is a Belgian company, and initially our client resold the materials manufactured in Belgium. In commodity items list of 1С: ERP they were marked as "goods for resale". They were recorded on the 41st account. Then the customer mastered the technologies and launched the production in Russia. They changed the setting in commodity items identification guide from "goods for resale" to "manufactured end product", that is recorded on the 43rd account. Everything was correct with accounting entries, but "goods for resale" still remained as stock on hand in the program.
So, goods arrived on the 41st account, but were sold on the 43rd account, though these are absolutely different accounts. An item bought for resale and a manufactured product have different production cost, they are in a different way reflected in a corporate income tax return, and the corresponding expenses are allocated differently. Due to incorrect transition of commodity items, there appeared in the company’s accounting operations contradicting the financial reporting rules.
The system bugs appeared also because the document "Operation of a regulatory accounting", that is in other way called an "accounting statement", was used to record such business transactions where it is not allowed to use. In 1С: ERP managerial accounting and real-time accounting go hand in hand and interdepend. An accounting statement is made only within a regulatory accounting, so it is prohibited to use it both for recording reversal documents and for arrangement of reciprocal payments. Incorrect usage of an "Operation of a regulatory accounting" entails discrepancies in real-time and regulatory environments.
We provided a list of errors that were revealed in the system to the customer and gradually corrected them. Now the company is improving its business processes and we write for them a sub-system of approval of documents. For example, the customer wants not only to draw up purchasing budgets, but to monitor the process as well. We create a modification that will not allow to make a purchase if the sum is beyond the planned budget.
To fill in the regulatory reference data and to upload a commodity items list
Customer: a subsidiary of an alcohol products holding company Project date: summer of 2019 Task: the holding changed to ERP, and the customer’s contractor transferred the data from "1C:Accounting 2.0" to "1C:ERP" by standard processing. After this transfer the information in the customer’s program was displayed incorrectly, the users could not clear up why it happened in such a way, and the accountant could not draw up the balance. We were asked to sort out the situation.
First we filled in the regulatory reference data for classifying a commodity items list, clients-contractors, and suppliers; trained the personnel to correctly constitute agreements; and configured separate groups of financial accounting for the company. Then we once more uploaded a commodity items list, that was previously transferred by standard processing, as well as on-stock balance.
The point of the project was that several holding enterprises worked within a single ERP database, and it was required to transfer one company’s data without distuning the neighbors' accounting. We had a restriction for functionality settings and we could modify almost nothing. As a result, we managed to catch up with a half-a-year accounting in the documents that were comparable within "Accounting" and ERP, and the accountants finally could see debit and credit side and could figure out a bottom-line financial result. If the case was not handled, the specialists would not submit the corporate tax returns, tax liabilities would appear, and the company would have to pay penalties and fines.
To organize consultations on accounting policy
Customer: cheese manufacturer Project date: summer of 2019 Task: after transition with standard processing the data in ERP did not correspond with that in "Accounting". The users could not figure it out by themselves. They asked us to explain how to reconfigure the normative-reference information and to correct the uploaded documents. We made several consultations on accounting policy for the customer’s employees:
explained how best to make contracts and agreements, to fill in the reference books;
helped to change types of commodity items list, to correct groups of financial accounting of commodity items;
demonstrated how to correct the documents uploaded from "Accounting".
There were no many documents, but after standard processing we had to correct 60% of the uploaded ones. Our specialists do not recommend to use standard processing in data transfer, because the configurations have different methodology, and 60−80% of uploaded data should be reentered manually. It is better to apply to developers that will write processing protocols for secure transition.
1C:ERP modifications during transition from other configurations We help our customers to transfer to 1C: ERP from other configurations and to modify the system for a certain business needs.
To modify blocks of 1C: ERP at implementation stage
Customer: dairy producer Project date: spring of 2018 Task: to change from "1С: Manufacturing Enterprise Management" to "1С:ERP" and to transfer modifications from one configuration to another. First, we were asked to transfer part of modifications from one configuration to another. For example, the tool "Debt adjustment" demonstrated good capabilities in "1С: Manufacturing Enterprise Management" in the process of acceptance and shipment of goods. It allowed to quickly recognize goods. The customer wanted the same modification to appear in "1С:ERP". We wrote the tool’s analog and added it to the system. Thereon the client expanded the tasks pool and asked us to get down to transition from "1С:Manufacturing Enterprise Management" to "1С:ERP". First, we transferred the developments the client liked and that proved good performance in the previous configuration. Then we started to develop new functionality from scratch together with the customer, based on the specific needs of the enterprise. The customer clearly understood what he needed and efficiently set tasks. He wanted the program to be convenient and fast-working. For a year of our cooperation a dairy plant completely transferred to ERP and customized business processes to his own needs.
Some of the tasks we solved in this project:
We implemented data processing for cost allocation. It helps the cashier to make a daily report on debtors for top managers in half the previous time.
We wrote reports that helped to reduce sales returns. The dairy plant had a client that constantly returned a lot of expired products. They asked us to analyze the situation. It turned out that the client ordered more products than he could sell. We prepared reports that helped the enterprise to tune up shipments of goods in accordance with their client’s real sales. It decreased the number of returns and cut the diary plant’s losses.
We made a report on short-deliveries that let identify the causes of mistakes in order picking and cut down logistics expenses. The dairy plant is a huge enterprise with a number of warehouses from which the products are delivered to wholesalers and retailers, and to own sales outlets. The problem was in products regrading and short delivery. Goods receiving personnel in shops often complained that there happened lack of a certain product position, the second one, on the contrary, was in excess, while the third one was simply forgotten and not delivered at all.
We collected information on sales and returns and pointed out the warehouses with most often mistakes in order picking. Thanks to this report the customer optimized work of his warehouse keepers and decreased short-deliveries, that led to reducing of returns, complaints and delivery costs.
In our implementation projects we not only install the program and provide instructions, but during a month after transition support the client to make sure that the system is functioning normally, and it is convenient for people to work in. This approach helps users to get comfortably accustomed to new program and thus they will not need to return to the old one. Since April of 2018 "1C" company stopped selling "1C: Manufacturing Enterprise Management". "1C: Manufacturing Enterprise Management" support will be finished on May, 1st, 2022, which means that the program will no more be updated and will not be consistent with legislation. "1С: Manufacturing Enterprise Management" users will have to change to some other configuration, for example, to "1С:ERP" or "1C:Intergrated automation 2.4".
If you faced the necessity to transfer from "1C:Manufacturing Enterprise Management", we suggest you not to postpone the upgrade till the end of its support. We will help you safely implement the system and modify it in accordance with your business processes. If you are interested, please, contact us to discuss the project in more detail.