Kazakhstan's №1 chemical fertilizer manufacturer adopts new software from 1S for payroll and HR accounting

The implementation into KazAzot's infrastructure of a 1S-based regional solution has enabled fully-fledged HR and payroll accounting in a single program and a single corporate database. Performance indicators:

  *   The rate of management account generation is up 20%;
  *   The processes of HR managers and accounting staff are more transparent;
  *   The labour input of the functions involved is down 10%;
  *   The risk of input of same data and incomplete employee details is eliminated;
  *   25 options configured for analysis report send-out;
  *   It is now possible to readily review the payroll cost items with potential of production cost reduction;
  *   A base is created to grow the corporate employee reward and incentive scheme. A mechanism is presented for remuneration to Directors and for pay accounting under an IC agreement.
  *   A database is put in place to grow effective employment relationships legally.

1. Jira (Atlassian) – software for joint monitoring of project tasks and errors;
2. Confluence (Atlassian) – a wiki system for convenient teamwork with personalized access to design materials;
3. 1CMarker – online service for UI and UX solution design based on 1S:Enterprise;
4. Corporate ZOOM – for video conferences of project teams;
5. Draw.io and Visio – services to create business process schemes.

Over its short life, the project saw numerous legislative changes that affected payroll accounting procedures as well. The integrator was quick to rise to the new challenges, proposed compromise solutions according in line with business suggestions and the advisability of improvements to the payroll module.

The WiseAdvice-IT's team of analysts did a lot to optimize the routine processes of the HR staff, technicians, accountants, payroll department staff and analysts with a view to improving payroll assessments compared with the accounting system already obsolete.

The whole implementation was designed to make subsequent unsupervised work of users on the new accounting system simpler and smoother. To make the program's configured or modified functionality user friendly and easy to expand and support by in-house technicians.

KazAzot is engaged in production and distribution of ammonium nitrate, ammonia, nitric acid and natural gas. The business employs nearly 1300 staff. Full-scale HR record processing is an everyday feature.

Various 1S systems were used previously based on an obsolete version of the 8.2 platform, 1S:Enterprise Management (1S:EM), used partially for HR and payroll accounting, 1S:Document Flow and 1S:Consolidation.

Reasons for the project:

• Upgrading 1S:EM required major outlays due to the deep customization of generic functionality over 18 years of use;
• Discontinuation of support for the configuration by the developer as of 2026;
• Statutory changes as regards regulatory returns were not automatically incorporated into the current version of SW. Employees were forced to monitor them and request relevant updates from a third-party developer;
• Manual input was used for hours worked by employee, and after re-input or document update all changes were lost;
• Issues with generation of in-house reports and analytics because of labour-intensive merging of data from Excel files with export to the accounting system;
• The functionality of the legacy configuration and the 1S platform no longer met the company's needs, failed to comply with the requirements for HR accounting and generation of up-to-date data for budgeting, nor did it meet the requirements of personal data security.

An experienced integrator, WiseAdvice-IT, was selected to modernize the 1S infrastructure as planned. As part of the scoping study, it was decided to set up the payroll and HR module as a separate system, 1S:Payroll & HR Management 8 PRO for Kazakhstan, latest version 3.1, and integrate on stage one with the current systems of KazAzot, and thereafter, in 2025-2026, with the new master system 1S:ERP. Group management as part of comprehensive automation and standardization of enterprise processes.

The creation of the company's all-in-one infrastructure involved the following integrations (two-way exchange):

• Management of meal e-vouchers (2.0.0.3) using the facilities of the Canteen automatic recording system - a workstation has been set up for e-voucher transactions. Charges for meal tickets and milk are applied automatically; the amounts involved are deducted from pay;
• 1S:EM for Kazakhstan, version 1.3;
• 1S:ERP. Group management (the system is being prepared for commercial operation);
• 1S:Accounts for Kazakhstan, version 3.0;
• 1S:M&R CORP Equipment maintenance and repair management.

The core system for statutory accounting is still 1S:EM for Kazakhstan, so fully fledged data exchange had to be developed with 1С:Payroll & HR Management for Kazakhstan, to be used until the customer fully adopts 1S:ERP. Group management. Target exchange dates: 1 January 2024 - 31 December 2024.

Kazakhstan, Aktau