About the client
Omnilife— is the Russian office of one of the largest international companies, which has been named the most rapidly developing in Latin America, this year the company celebrated its 13 year anniversary. The Omnilife group operates in 17 countries of the world. Company headquarters is located in Mexico. Omnilife specializes in producing food supplements (vitamin and mineral complexes), cosmetics, as well as owning other businesses. The Omnilife Group holding company includes: movie production (film studio in Hollywood), a financial company, a building company carrying out large architectural projects in several countries; a transport company with its own planes etc. the company’s annual turnover exceeds 1 billion USD.
Situation
The Russian representative office of Omnilife is a rapidly growing organization in terms of both sales volumes and number of employees. The company’s specialists were well aware of the need to automate financial and managerial accounting. The future automation system was faced with the following tasks:
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Accounting of settlements with clients and suppliers
- Integration with the corporate system of accounting of goods, sales and settlements with distributors
- Cash assets management
- Fixed assets accounting
- Stock management
- Personnel records and payroll calculation
Choice of solution
When selecting the system of financial and managerial accounting the client set difficult tasks:
- With of account of the company’s secific nature reporting must be performed both by RAS standards and with account of US GAAP standards, at the same time the system must provide for parallel accounting in several currencies.
- The system must ensure sufficient scalability based on company growth forecasts.
- All of the company’s branches use the corporate system of accounting of goods, sales and settlements with distributors, which accounts for the specifics of MLM networks. The new system of financial and managerial accountinghad to provide convenient possibilities for integration and flexible means of resetting interface parameters.
An additional important advantage of Microsoft Dynamics AX for the client when selecting the system was the methodology of implementation, which allows to complete works on a tight schedule without compromising quality. As a result of the evaluation of these and a number of other factors the Microsoft Dynamics AX system was selected.
Solution
The project was started in February 2005 simultaneously to the start of active operations of Omnilife on the Russian market, so modeling of business processes was carried out in real time mode in Microsoft Dynamics AX and BOSS-Kadrovik.
The main difficulty of the project was the simultaneous accounting of main business processes according to two standards. This posed many methodological issues that had to be solved on a tight schedule. As a result a unique approach was chosen, which allowed to perform accounting of all operations within one chart of accounts, and at the end of a period consolidate the reports in the primary and secondary currency of the system according to both standards pursuant to set up rules.
Results
Based on two systems Microsoft Dynamics AX and BOSS-Kadrovik a unified information space was created covering bookkeeping and tax accounting, payroll calculation and tasks of unified corporate accounting.
« Aside from standard requirements towards bookkeeping and tax reporting, it is also important to us to set up corporate (according to US GAAP standards) and management accounting, which are necessary to control and manage the company’s activities. We are a young company and can’t afford a large number of financial employees, so one of the main goals of GMCS consultants was to set up the system in such a way that would eliminate double data input and allow to effectively form the necessary report ».
Irina Gerasimova
Chief Accountant, Omnilife - Russia
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