Vladivostok Sea Fishing Port ensures transparency

Open JSC Vladivostok Sea Fishing Port has introduced a budgeting system based on 1С 8.0 UPP software. Vladmorrybport’s deputy Director General on economic and finance issues comments first months of work with new system: Financial state of the company is the indicator of its competitive ability. The system of monetary relations developing in the process of the company’s commercial and production operations is based on budgeting system introduced at Vladmorrybport. It is a combination of analytical solutions (specification of tasks considering organizational, informational and technical possibilities of analyses). In order to take decisions in production management, sale, finance, investments and novelties, the management requires permanent information about corresponding business issues, which is possible to get from the budget system.

Consolidated finalization reports

Vladmorrybport OJSC is one of the leading ports of the Far East Basin.  The company’s annual turnover is 1.3 million tons of cargo. It provides all the services of a multipurpose transshipment complex – transshipment of containers, metal structures, cars, timber and general cargo.  

In order to improve efficiency of planning and management decision making as well as monitoring of economic-and-financial state of the port, the has developed and introduced a budgeting system. The company’s press service reports that the system enables not only to reinforce financial discipline but also to consolidate management accounting through its unification. Basic budgets of the company are income-and-expense budget, cash flow budget as well as a production program. Introduction of the system is reported to be costing 75 thou rubles.

Calculated from all the points

Basic part of new software is the income-and-expense budget. It reflects the balance between all income (revenue from actually shipped and delivered products or services rendered) within the reported period and all expenses to be incurred by the company within the same period. Besides, the most significant (critical) expense items are distinguished by the system. This budget is to be developed and approved for one calendar year with obligatory month division. It also separates internal business volume per subdivision – expenses of auxiliary units are accounted for primary production. It enables to carry out precise accounting of cargo operation cost price in compliance with the methods of the federal tax service (FTS). Activities of the port units are estimated on financial result basis. Planned and actual results are shown per month, per period from the year beginning and per year-on-year period. There is also a consolidated income-and-expense budget with distribution of direct and indirect expenses as well as cost center distribution.

The software provisions control of accounts receivable per persons in charge of certain business process.

The software also reflects calculation of cargo operation cost price for price limits, which is successfully used by top-managers for tariff setting at FTS.

All the units are transparent

The system has been introduced not only at the company and all its units but also at all subsidiaries of Vladmorrybport with consolidation of management accounting, the port informs.