Tatneft and Energy Consulting Project Recognized Best in CIS SAP Contest

September 25, 2013

SAP products based solution in personnel management developed by JSC TATNEFT and Energy Consulting has been recognized as the best at the Summit of the Russian localization of SAP solutions and would be included as a standard functionality of SAP ERP.

The contest for the best customer-related solution was arranged for SAP ERP FI/LO (Finance and Logistics) and SAP ERP HCM (HR) for the first time in the frame of the Summit of the Russian localization of SAP solutions held in Moscow.

Along with JSC TATNEFT in the final of the contest there were solutions presented, which had been developed by the experts at SberBank of Russia, BINBANK, while JSC "Gazpromneft" presented a project developed by EVOLA Company.

The solution proposed by JSC TATNEFT and Energy Consulting "Establishment of a contingency reserve for payment of unused vacation days in the accounting for the quarterly inventory” in the "Personnel Management" system based on SAP products (SAP HCM) was the best as a result of an open vote of SAP customers and professionals; now it will be included as the standard functionality of SAP and it will be used by SAP customers and will be supported by SAP AG as part of the standard support services.

The solution winning in SAP HCM nomination has been implemented in 23 divisions of JSC TATNEFT. The users of the solution are the employees of HR offices and accounting services of the enterprises

The task designing was carried out on the basis of the methodology developed by the Accounting and Reporting Department of JSC TATNEFT. The basis for the solution implementation was the Accounting Regulation 8/2010 "Provisions, Contingent Liabilities and Contingent Assets" approved by Order No. 167n of the Russian Ministry of Finance dated December 13, 2010.

The solution introduction was dictated by the need to create and update on a quarterly basis the contingency reserve for payment of unused vacation days taking into account insurance premiums in the accounting system of JSC TATNEFT.

The solution proposed allows verifying the actual balance of the unused vacation days for each employee, accurately entering the data into the information system and calculating the contingency reserve for payment taking into account actual average daily earnings of the employee.

As a result, calculation of the actual vacation allowance and compensation for the unused leave is made from the amount of the contingency reserve established earlier and the allowance accrued allows distributing of the vacation amount on an even basis with regard to the cost of the products output by the Company.

The reliable received amount of estimated liabilities to pay for the unused vacation days presents a true-life picture of the employees exercising their right for vacation and increases discipline in terms of the vacation granting. The solution allows monitoring of compliance with the labor laws in any office or workshop of the enterprise.

The solution implemented in the program has been verified by auditors in the frame of auditing financial statements by the Russian, as well as by consolidated