1C-Rarus started developing software solutions for accounting under international standards in 1995 by releasing 1C‑Rarus:GAAP 1.0, software based on 1C:Accounting 6.0. and very quickly gained popularity among representative offices of foreign companies in Russia. 1C:Accounting has introduced some new features such as: the capability to translate entries of the Russian chart of accounts (COA) into off-balance sheet accounts in the international accounting, prepare balance sheets, generate profit & loss and cash flow statements under IAS and US GAAP.
The number of 1C-Rarus:GAAP implementations was starting to grow and later on, 4 business application versions were released. They came along with a number of newly developed features.
The launch of the new 1C:Enterprise 8 platform would introduce the ability to develop a new business application.
Following the initial success of 1C-Rarus:GAAP, 1C-Rarus:Corporate Financial Management, based on 1C:Enterprise 8, was released between 2005 and 2007. Later on, this app would become a joint solution for 1C-Rarus and the 1C company, known as 1C:Corporate Finance Management. Apart from accounting activities covered by IFRS, the system allowed its users to make and control the budget, as well as to analyze cash flows.
The 1C:Corporate Finance Management business app was successfully sold and implemented up to 2017. The total sales reached the amount almost equal to 2M USD. Software users would become large Russian companies as well as overseas branches and foreign subsidiaries in Russia.
Financial Management Today
In 2020, proceeding with the software product line, designed for financial management, 1C-Rarus has released a new solution named 1C‑Rarus:Financial Management 3 based on 1C:Accounting 8 CORP. The solution includes three independent modules: IFRS (International Financial Reporting Standards), Budgeting and Treasury Management. It can be used as a package of integrated modules or you can purchase any stand-alone module, if needed.
Another 1C‑Rarus:Financial Management 3 software advantage is its competitive price. You can purchase each module separately for 50,000 RUB and the package of integrated modules price is 150,000 RUB.
The IFRS module allows you to maintain records both according to the Russian standards (RAAS) and international financial reporting standards (IFRS), and generally accepted accounting principles (GAAP). Accounting entries are translated into the IFRS chart of accounts with the possibility of making specific adjustments.
1C‑Rarus:Financial Management 3 allows you to control differences between financial statements under IFRS and RAS.
The financial statement closing procedure, in accordance with IFRS, usually takes 3–5 days after the end of the accounting period. The Russian legislation allows you to make adjustments within the following month or quarter. In order not to disrupt data under IFRS, the software provides the capability to set a “no-edit” date for the financial data and gives a mechanism for the reflection and control of differences between financial statements under IFRS and RAS. Entries according to RAS are made on the date of the source document in the required period, and changes are reflected in the accounting under IFRS in the open period. The software allows you to maintain several parallel ledgers in a single company code (parallel accounting) according to the Russian legislation and international standards concerning: fixed assets, intangible assets, financial assets and liabilities; consolidated and separate financial statements are prepared under the international standards.
Using a Budgeting module, companies can create a single system of income and expenditure planning, cash flow forecast upon different scenario models and items applying different analytics (dimensions).
The software provides you with the multi-scenario financial planning and budget execution analysis.
We are planning to release a Treasury Management module, which will allow you to perform the following actions:
- forecast cash flow (gaps);
- manage cash in the short and medium terms;
- organize bid campaigns;
- control payment limits and terms;
- and create a payment calendar.
Along with 1C:Accounting 8 CORP three modules, 1C‑Rarus:Financial Management 3 creates a complex system that covers key elements of financial management of a medium-sized business.
The 1C-Rarus:Financial Management 3 software products are successfully implemented in the enterprises of different business sectors.
Among the first users of 1C‑Rarus:Financial Management 3 is a representative office of the Panini Group in Russia. Panini is the world leader in the collectables and trading cards market. It is also one of the leading publishers of children’s magazines, books, and comics. The headquarters of the Panini Group is in Modena, Italy.
Rozanova Ekaterina, General Director of OOO IZDATELSTVO PANINI RUS (LLC), summarizes the project results:
We have successfully solved the task of the financial management automation in the PANINI representative office in Russia with the 1C‑Rarus:Financial Management 3 software. Now we have a capability to maintain accounting and prepare reporting by Russian and European standards. The system allows us to forecast cash flows, control budget execution, always be on the top of financial situation in our company, and take balanced managerial decisions.
In March 2020, by implementing 1C‑Rarus:Financial Management 3, the financial management automation project was completed in LEO Pharma, a pharmaceutical company. LEO Pharma develops, manufactures and markets products for dermatology, bone remodeling thrombosis and coagulation in more than 100 countries. The Russian representative office, OOO LEO Pharmaceuticals Products (LLC), was founded in August 2013.
Galaburda Igor, General Director of LEO Pharmaceuticals Products, comments on the project results:
Implementation of the financial management automation system has reduced labor costs for data input and preparation of financial statements. Entries, under international standards, are promptly generated. As a result of work in a unified accounting system, we have a capability to control financial results of the company.
1C-Rarus is planning to proceed with the development of the software product line for financial management using best practices and their own experience in projects concerning implementation of 1C‑Rarus:Financial Management 3. Stay tuned!