OBI

Project Parameters

 

Outsourcing of payroll 

 

2010 г. – present

 

5000 employees

 

7 legal entities

 

1C, «HRB/HR Administration and Payroll», SAP

About the client:

The OBI company is Europe's leading retailer of do-it-yourself goods, specializing in construction materials. At this time, in Russia, it has 8 stand-alone offices and 19 stores, employing about 5500 in Moscow, St. Petersburg, Kazan, Nizhny Novgorod, Omsk, Yekaterinburg, Volgograd and Krasnodar.

Challenge:

Until the year 2009, the OBI company did personnel administration with the use of the HRB/HR Administration and Payroll Accounting software. Payroll accounting was done by an outside service provider using his own software.

Having selected the Unicon Outsourcing to do its payroll accounting, the client instructed the new provider to verify payroll calculations and reports for the 12 months period preceding the beginning of the provision of services by it. The OBI company also decided to switch to the 1S 8.1 Payroll Accounting and HR Administration software. Unicon Outsourcing professionals, using 1S software, had to adjust and test payroll accounting and the forming of analytical reports. They also had to prepare for uploading transactions to the SAP corporate system, uploading banking files and setup remote access to the 1S ZUP system.

Solution:

A team of OBI professionals, programmers employed by the Unicon Outsourcing, adjusting the payroll module of the system, and employees of the 1S franchise company adjusting the Personnel module was put together to work on the project. The completion of the work took the team less than two months. Their task was made more complex by that the switching of the OBI company to the 1S system coincided in time with certain changes in Russia's legislation. The single social tax was replaced with the payment of insurance premiums, which was the reason the system had to be promptly readjusted, the system of reporting changed accordingly and the software appropriately updated.

While the system was being adjusted, data was migrated from the HRB/HR Administration and Payroll Accounting system to 1S. Professionals of the Unicon Outsourcing verified the correctness of personal data being inputted, the calculations made by the client's employees and tax calculations for the past two years. For that purpose, the client's computer network was partially setup at the Unicon Outsourcing office and connected to the principal OBI network via a protected VPN.

Most OBI employees work according to individual schedules. That was the reason why employees of the Unicon Outsourcing set up overtime calculation functions in the payroll module, so as to account for scheduled and unscheduled holiday work and for food costs on days off and holidays in proportion with time worked.

Professionals of the Unicon Outsourcing trained OBI human resources personnel in the efficient use of 1S software so as to enable them to enter data needed for payroll calculation.

Interaction schedules were worked out in order to have interaction between Unicon Outsourcing and OBI under control. The schedules covered categories of documents and data, deadlines for their generation, indicated those responsible, ways of data exchange, etc. Schedules for data exchange are put together and coordinated on a monthly basis which assures the timeliness of calculation results.

Result:

At this time, the Unicon Outsourcing performs, for OBI, 5 payroll calculations monthly, including advance payments, two basic calculations, including a separate calculation for VIP employees, and two intermediate calculations. If need be, like in the cases of unscheduled leaves of absence, dismissals, etc., urgent individual calculations are performed.

Calculations for certain OBI divisions are performed so as to account for local coefficients. A package of documents is formed according to the results of the calculations. It includes two types of general pay-sheets and a pay-sheet for every store. Then there are reports covering transactions, withholdings and sick leaves, data concerning settlements with employees and tax calculations, memos concerning taxes, dues, alimony, etc. and memos as to payments to be made to employees with adjustments for payments made during earlier periods.

A special .txt uploading file is formed in order to upload transactions to the SAP accounting system. It covers all monthly payroll accruals, business unit analyses, SAP accounts and the distribution of costs between financial responsibility centers.