Transitioning from PeopleSoft to 1C, migration of 3 years and 9 months’ worth of data, setting up General Ledger and tax accounting compliant with 2 standards simultaneously.

This case shows how we helped a client to rapidly switch from working in PeopleSoft to using 1C 8.3 Accounting IFRS, and also how we transferred all the data for the previous 3 years and 9 months of the current year, and set up GL and tax accounting to work in parallel, in compliance with 2 different standards.

In 2020, we received an order from the Russian division of a large international holding providing corporate and investor consulting services in the field of commercial real estate and investment management in Russia and around the world. The turnover of the Russian division is more than 2 billion rubles a year.

The company's plans included the transition (with our help) from the current for GL and tax accounting software to using 1C, the transfer to the new database of accounting data for the previous 3 years and 9 months of the current year, setting up accounting for two standards in parallel and outsourcing the accounting to us. The number of transactions was 45 thousand per year, the internal accounting tasks were handled by the company’s accounting staff of 9.

As part of the project, we had to address the following tasks:

• transfer the archive of accounting data (both those based on the Russian Accounting Standards and those on GAAP) for three years from PeopleSoft to 1C 8.3 Accounting IFRS;
• set up accounting according to the Russian Accounting Standards (RAS) and a parallel set of accounts according to GAAP in 1C 8.3 IFRS Accounting;
• set up the GL and tax accounting process for the client;
• transfer data for 9 months of the current year and continue accounting in the new database;
• ensure simplicity and transparency of business processes;
• train the client's employees to work in the new database.

The project timeline (duration and stages)

As always, we started working on the project with the development of a technical specification document, and setting clear deadlines for completing the tasks for each of the 7 stages.

Stage I. Analysis of the PeopleSoft database, development of templates for data migration to 1C – 3 months.

Stage II. Development of RAS to GAAP translation mapping, coordination the with corporate group financial controllers – 3 weeks.

Stage III. Migration of GL & tax accounting and GAAP data to 1C for 9 months of the current year – 3 months.

Stage IV. Data reconciliation, results review and approval by the group’s financial controllers – 1 month.

Stage V. Development and implementation of GAAP data uploading to the international group’s corporate software – 1 month.

Stage VI. Development and implementation of GAAP reports in 1C (provision for doubtful debts, depreciation of fixed assets, etc.) – 2 months.

Stage VII. Migration of GL, tax accounting and GAAP data for 3 years (data archive) to 1C - 5 months.

The challenges

From the start we were aware of the challenges to be addressed in the course of that project..

1. PeopleSoft and 1C 8.3 Accounting IFRS – are completely different from technical standpoint as accounting software: it is impossible to compare the postings downloaded from PeopleSoft with those obtained in 1C, because foreign accounting software does not adhere to the double entry rule the way 1C does. We had to develop multiple algorithms to convert postings to the 1C format.
2. Time constraints. We had to work against very tight deadlines to upload, verify the data and have the project reviewed by an international team of financial controllers
3. In parallel with the loading and reconciliation of data we needed to start accounting record-keeping.
   
   

The team

We put together a team of 11 Accetera specialists to work on the project:

• Accountants – 7.
• Technical support team, 1C programmers and analysts – 4.

The Accetera team took care of GL, tax and GAAP accounting, monthly closing and preparation of GAAP data for uploading to the corporate system within a clearly defined time frame, as well as full responsibility for the preparation of RAS accounting statements and tax reports, submission of reports to fiscal authorities pursuant to the Russian law, communication with customer representatives, both internal and external.

The 1C technical support team provided the software implementation for the tasks related to the transfer of data archives, the development of multiple algorithms to convert postings to the 1C format and automate business processes.

The results

The project was completed in 2021; the established goals were achieved, and the deadlines met. The result of our work, which took 1 year and 4 months, exceeded not only the client's, but even our expectations.

The client’s benefits:

• Two accounting databases, one with historical data for 3 years, the other -the current database, also with uploaded data, where the accounting was continued going forward.
• Accounting in GAAP, custom GAAP reports and data uploading to the corporate software system operated by the international group.
• A reliable team of specialists that achieved all the planned technical goals in a timely and efficient manner and continues to provide the client with GL and tax accounting and statutory reporting services.

Our benefits:

• A satisfied client with whom we continue to cooperate.
• A new request from the same client for the development and implementation of an electronic document management system based on 1C.