The First Bit automated accounting in a large tobacco company

KT&G is the leading tobacco company in South Korea and the fifth in the world. Their products are represented in more than 50 countries around the world. It has been represented in Russia since 2003. The brand portfolio includes Esse and Blooming brands.

KT&G is one of the largest suppliers of tobacco products in the world. The company, founded in Korea more than a hundred years ago, is now represented in more than 50 countries, in 10 of which it occupies a leading position. The Russian market, where KT&G has been operating since 2003, is one of the most important for the company. In our country, KT&G has two legal entities: the production company KT&G Rus and the back office KT&G Global Rus.

Business development requires a lot of resources

Before the project, both organizations used 1C for payroll and accounting (1C: Kamin and 1C:Accounting). However, due to the increase in production capacity and increased demand, companies did not have enough opportunities offered by the IT solutions they used.

In this regard, the Russian representative office of KT&G faced the task of implementing additional functionality, such as:

Manufacturing accounting;
Reporting in accordance with IFRS;
Integration with the Korea Head Office Accounting System (GWmis) for uploading international and regulated accounting data;
Preparation and launch of mandatory labeling of tobacco products.

Partner selection and solutions

To solve these problems, KT&G turned to the First Bit. The First Bit, being the largest 1C partner and having successfully completed more than 250,000 projects in over 20 years, has the experience and expertise required by the customer. For example, the consultants of the International Project Office have completed a lot of projects on the integration of Russian accounting systems with foreign ones in large representative offices of international companies.

Given the challenges facing KT&G, the experts of the First Bit suggested using the solution 1C:ERP. The extensive functionality of 1C:ERP covers the needs of KT&G, the solution supports the marking Russian system and the deep expertise of the First Bit in this area were the main reasons for choosing this system for automation.

To solve the problem of reporting according to the international standards, the consultants suggested using the Bit.Finance application.

Project implementation

The first part of the project lasted 7 months and the First Bit specialists performed the following:

Collection of functional and technical requirements;
License delivery;
Setting up and configuring the software; setting up user rights;
Configuring integration with an external system;
Filling the database with initial data;
Training and support of users at the stage of pilot operation.

Implementation results

As a result of the project, the First Bit created 12 working places in the 1C: ERP software. The implementation of the solution allowed the company to get the following functionality:

Production accounting and cost calculation;
Regulated accounting;
Management accounting;
Uploading data to an external system.

The ERP implementation allowed the company KT&G to:

Quickly receive data on the output of finished products;
Write off materials according to specifications;
Accurately and quickly calculate the cost of production.

Using the Bit.Finance application allowed the company to keep records in accordance with international financial reporting standards, the data of which is uploaded to the accounting system of the head office.

The future of the project

The goals set for the first part of the project have been achieved. In the second part, it is planned to launch the functionality related to the management of tobacco product labeling and the transfer of data to the state information system.