OREANDA-NEWS.  August 25, 2014. “Firma Melodiya”, a legendary Russian sound recordings company, has implemented Sage ERP X3 for management accounting. Energy Consulting is the Contractor for this project.

The development of business of “Firma Melodiya” stemming from a significant increase in the range of rights-holders and partners has resulted in the need to obtain precise control over expenditures and to prepare consolidated management accounts on a prompt basis and in a variety of analytical cuts.

In order to solve these tasks the Customer has made his choice in favor of Sage ERP X3, a full-fledged ERP-system for medium-sized businesses. One of the strengths of this system is an efficient support to keeping management accounting. Energy Consulting is the exclusive integrator of this solution for Russia.

The system keeps accounting of all cash flows in a convenient format, as well as all settlements with partners and employees. Any Customer can see at each point of time the information on Company’s total cash flows — available, earmarked or scheduled receivable cash flows — broken down by bank accounts.

The system enables to analyze payables and receivables broken down by authors or right-holders jointly participated in a general project (making a musical collection), to analyze tax, lease and salary debts. The Customer can track, for example, a salary as a whole with Personal Income Tax (NDFL) rather than just seeing a simple debiting of monetary resources for salary. If salary is paid from monetary resources assigned for settlements with suppliers, the system presents it as the deficit in settlements with suppliers.

The project has resulted in significant reducing time for the preparation of consolidated financial statements. If, for example, earlier it used to take approximately 10 days to prepare accounts. Then it took some more days to join several accounts into the consolidated ones. But now all necessary management accounts are prepared automatically.

The Customer has received an access to updated and consolidated managerial data giving an opportunity to prepare consolidated financial statements in a prompt and simple manner. Financial staff and managers have an actual view of settlements including the settlements with each right-holder, employee and supplier – all history of settlements with business partners are in their own hands.

Andrei Krichevski, General Director of “Firma Melodiya”: "Due to this project we understand not only the accounts of expenses but also who, whom and how much should pay. We see every penny spent: from which source it was taken and for which aims it was spent. Now it is simple to get consolidated financial statements: it took several days before but now it takes 1 minute at most".

Sage ERP X3 is integrated with corporate software for financial and tax accounting, and with software for payroll preparation and HR records keeping. The project was completed within 4 months.

As the horizons for the project it is expected to automate accounting by nomenclature positions that will allow monitoring of production cost and profitability for tens of thousands of CDs and LPs in the real-time mode, as well as to accumulate information over a large volume of digital content.