20 november 2007
GMCS creates unified accounting model for Rostelecom and five subsidiaries
GMCS announced completing the principal stage of the project creating a unified corporate accounting system for Rostelecom.

Rostelecom is the Russia's largest telecommunications company and includes five subsidiaries: Westelcom, Zebra Telecom, GLOBUS-TELECOM, GlobalTel, and MTs NTT. The project involves implementation of a comprehensive system based on Microsoft Dynamics AX and BOSS-Kadrovik at the operator's subsidiaries. Rostelecom has been using Microsoft Dynamics AX and BOSS-Kadrovik for a number of years and chose them as standard corporate solutions.

GMCS and Rostelecom specialists started implementing the project in the spring of 2007. The finance management system based on the new Microsoft Dynamics AX 4.0 was launched in October at four out of five Rostelecom subsidiaries at once, namely Zebra Telecom, GLOBUS-TELECOM, GlobalTel, and MTs NTT. Westelcom management system was launched in July 2007. Personnel management systems are expected to start operating before the end of November 2007.

Within the company's general effort to improve corporate transparency and asset management policies, Rostelecom decided to develop and implement a unified accounting model to be used by all of its subsidiaries.

"Taking into account the diverse range of services provided by the company's subsidiaries, the challenge was to maintain a certain balance. On the one hand, the overall accounting model used by Rostelecom had to remain in place. On the other hand, the individual business features of each of the subsidiaries needed to be taken into full account," explains Roman Frolov, senior accountant, Rostelecom. "First of all, therefore, together with GMCS consultants we worked on standardizing accounting approaches and classifying income sources, costs, and cash flow items."

GMCS project team specialists have automated the accounting system of all segments in compliance with the Russian legislation, including fixed assets, trade and client payables, cash, inventory, customer relations, cost calculation, and profit/loss calculation for services. GMCS consultants have also automated the fixed assets accounting under international accounting standards, and have developed corporate reporting documents fully aligned with the parent company's standards. GMCS has also developed and implemented data consolidation mechanisms in order to provide consolidated reports for Rostelecom Group, as well as automated budgeting and cash claims processing. At the heart of the end solution is GMCS Telecom, an industry business application developed by GMCS consultants. It is based on Microsoft Dynamics AX and takes into account the various specifics of the telecommunications business.

The consultants also needed to efficiently organize the work of the subsidiaries' HR services within a unified accounting system implemented by GMCS on the basis of BOSS-Kadrovik. To accomplish this, GMCS specialists reengineered the company's personnel management processes and optimized payroll practices. Operations that used to be performed manually, such as organization lists, personnel records and time-keeping, and payroll calculation, are in the process of being automated and will all be performed using one program.

Together with Rostelecom specialists, GMCS will perform integration of the Microsoft Dynamics AX management system with BOSS-Kadrovik, billing systems, and Bank-Client systems that the subsidiaries currently use.

The project will result in a unified information space built across Rostelecom structure. This will ensure efficient information management, reliability of data and a flexible system of access management for various system databases. Having a unified management system will also ensure orderly production of consolidated reports for Rostelecom Group with less time and labor spent on this by staff of the subsidiary companies.

About Rostelecom

Rostelecom, Russia's national long-distance operator, owns and operates a 150,000 km nationwide telecommunications backbone network. Rostelecom supports the bulk of the country's long-distance traffic and an online network of TV and radio broadcasting channels. Rostelecom's largest shareholder, Svyazinvest owns 50.67 percent of the company's voting shares.

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