OREANDA-NEWS. On March 21, 2007  IBS, the leader in the Russian market of consulting services and information technologies, announced on completion of the budget accounting consolidation system project at LUKOIL Overseas Holding Ltd. consisting of more than 70 branches, reported the press-centre of  IBS. The main aims of the project were providing of quality, efficiency, coordination of working out and analysis of the Holding's consolidated budgets and proper accounting forming.


IBS has been engaged to fulfill the project. Executor selectiion has been conditioned by the great experience of IBS in similar systems implementation for large holdings and successful collaboration with LUKOIL Overseas within the book-keeping accounts consolidation system deployment project.
The system is based on the SAP AG software products which are a corporative standard for information systems. In particular, the book-keeping accounts consolidation system is built on these products. Common product platform should simplify a planned process of both systems integration.
At present, the consolidated budget is automatically formed in information system under the branches' budget accounting. The unified format for budget accounting provision based on Microsoft Excel work books was developed for them, and a schedule for budget data delivery was worked out. Rules of consolidation developed under the project are used for the account forming, and special algorithms for budget items classification and internal turnovers exclusion are used. The system automatically delivers the formed consolidated budget to the branches.

Now, it is also possible to form analytical reports, and this feature allows a user to receive necessary information in various analytical cuts and with various number of details. In particular, this function may be used to analyze effect of structure changing or new companies integration upon consolidated results. The system supports unlimited number of budget models and versions of consolidated budget. At this moment, it is possible to draw up 167 regulated and about 20 analytical reports in the system. Anatoly Samiullin, the IT Director of LUKOIL Overseas Holding Ltd., says: "This project allowed to solve two basic problems: to provide consistency of consolidated budgets forming and analysis and significantly increase budget accounting quality. Utmost automatic performance of routine operations for information processing guarantees accuracy of report data. Moreover, we expect that information storage deployed under the project will become a foundation for creating of unified information environment".


It has taken a year for the joint project team of the customer and IBS to perform the budget accounting consolidation system project at LUKOIL Overseas Holding Ltd. Now, it is planning to integrate the book-keeping and budget accounting consolidation systems which will allow to perform the “plan-fact” analysis in the system, remote access to the system from regional branches for data loading and accounting review as well as creating additional analytical reports.