OREANDA-NEWS. June 10, 2013. SAP ERP based automation of financial and economic activities has been completed at four divisions of JSC TATNEFT. The project has been implemented by the experts of the Energy Consulting Group of Companies within replication of the corporate financial management system at the non-core activity subdivisions.

The main result of the work carried out is successful delivery of the quarterly financial, managerial and tax accounting in the following structural divisions of the Company: Standardizing Research Station, Engineering Center, Tatar Geological Exploration Administration, as well as the Representative Office of JSC TATNEFT in Moscow.

This project is the final stage in transferring of all the JSC TATNEFT's accounting processes into SAP and creating a unified information system for the formation of the consolidated financial statements of the Company.

The project was completed in the course of implementing the program to create a SAP ERP based system for formation of the consolidated financial statements of JSC TATNEFT. The project developed and implemented standard solutions in the field of accounting, taxation and management accounting, transition from FORT solutions to the new SAP ERP platform was made.

Automation was done in a record-setting time period: just four months after the integration testing of standard design solutions the system was adapted to the business processes of each of the structural divisions and switched over into commercial operation. Over the next three months, these companies formed monthly and quarterly reports in the new system.

To run SAP in medium and small structural divisions of JSC TATNEFT there was applied the type assignment experience gained earlier in the Oil and Gas Production Boards and other major divisions of the Company. Despite the apparent simplicity of the implementation process at some divisions, the number and complexity of the project tasks as a whole is comparable to the creation of a large enterprise management system.

The employees of Energy Consulting/Tatneft (part of the Energy Consulting Group), first specialized company in Tatarstan to support SAP business applications were actively involved in the project. The tasks of the Energy Consulting/Tatneft included, inter alia, analysis of solution designs on the lack of collisions with the systems being already in commercial operation. Great support for the project was also rendered by SAP service officers of TATNEFT Company.

Now, after the transfer of the structural divisions on the use of standard business operations and common analytical features and objects, the project team has to perform a great deal of methodological work. It is necessary to analyze all available forms of consolidated accounting, describe and actualize their composition, design and implement algorithms of collecting and compiling consolidated reporting in the system.

Further replication of the new SAP ERP platform based system landscape will be continued in the executive management body of JSC TATNEFT, TatNIPIneft, Lease Relations Department, Bugulma Mechanical Plant, Auto Transport Company and in the branches of the Company

In addition to accounting, logistics, finance, cost accounting and tax accounting the system created will support the formation of such elements of the consolidated financial statements as a single balance sheet, unified profit and loss accounts statement, a unified database of accounts receivable and accounts payable. In the short term the plans provide for launching the functionality allowing to automatically generate reserve calculation for bad debts.