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Crayon and Innoware recently hosted a joint webinar entitled “How Ukrainian businesses can abandon 1C/BAS in terms of HR accounting and payroll: migration to a specialized solution IW HR&Payroll” Attendees learned about the process of moving away from the russian 1C/BAS software and the migration opportunities to Innoware’s specialised IW HR&Payroll solution.
During the webinar, speakers Olena Chernets (Head of Microsoft Dynamics 365 Business Central Implementation Practice) and Vitalina Alekseieva (Lead Consultant and System Architect) spoke about the capabilities and advantages of IW HR&Payroll, a specialised solution for HR accounting and payroll. They also discussed the threats posed by using Russian software for Ukrainian companies and the dangers of its continued exploitation.
IW HR&Payroll is a modern, flexible, and technological solution for HR accounting and payroll. Developed by Innoware on the Microsoft Dynamics 365 Business Central platform, it is fully compliant with Ukrainian legislation and can be integrated with any ERP system.
Learn More in the Q&A Session
1. Do you deploy Microsoft Dynamics 365 Business Central as SaaS or on-premises? When cloud hosting in M365 was mentioned, did that mean SaaS?
We recommend a fully cloud-based deployment (SaaS), but on-premise deployment (on your own servers or in a private cloud) is also possible.
2. How localised is the documentation with regard to Ukrainian regulations, such as UESV, the State Tax Service, and tax declarations?
The IW HR&Payroll solution supports all requirements of Ukrainian legislation: from calculating specific accruals (e.g., holiday pay) to generating mandatory reports (e.g., 1-PV, Unified Reporting). The tax module within IW Localization handles tax invoice accounting, declaration generation, and so on.
3. Does the Payroll module generate reports like the Unified Social Contribution (UESV) for subsequent transfer (file export-import) to M.E.Doc?
Unified Reporting is exported in XML format for subsequent uploading to M.E.Doc.
4. Is there already a working integration with SAF-T?
The SAF-T implementation has not yet been finalised, as there are still no clear requirements from the tax authorities. Some of this functionality already exists and will be completed as soon as possible.
5. Regarding holiday leave: if an employee is mobilised, are they still entitled to holiday leave? According to current legislation, the accrual of available days should be stopped
Through the system settings, the accrual of holiday leave for mobilised employees is automatically stopped.
6. Is this an out-of-the-box solution, or can we transfer all our customisations from 1C/BAF?
This solution is built on Microsoft Dynamics 365 Business Central. Simply transferring your customisations will not be possible due to the completely different architecture of the solutions. However, all the necessary modifications can, of course, be made to meet your company’s specific requirements.
7. Can we program your module in Microsoft Dynamics for our required functionality, or is it a closed solution where you do not make changes?
The company does not provide full access to the solution’s code, but users can build their own functionality ‘alongside’ it. Some clients have their own development teams and utilise these capabilities.
8. Are there public APIs for integration into our own solutions?
Yes, API integration is possible.
9. Are holiday reserves also calculated?
Yes, this functionality is available in the system.
10. Does the solution support on-premise deployment and a perpetual license?
Unfortunately, perpetual licenses have not been available since April 1st of this year. Currently, on-premise licenses are also sold on a subscription model.
11. Regarding espionage: did you monitor the traffic of 1C platforms or a specific configuration?
Innoware relies on the State Service of Special Communications and Information Protection, which is developing a register of hostile software and performs the monitoring of Russian software traffic themselves.
12. Is it possible to manage payroll accounting for both statutory and management accounting (with different rules, entries, analytics, posting periods, etc.)? Can this be done with a single document but with different ledger entries, or is it better to maintain two separate documents in parallel (one for statutory accounting and one for management accounting)?
This is a matter of how much management and statutory accounting differ. If the only difference is in the analytics, this can be done within a single document. But if the rules are radically different, we recommend configuring two documents that do not have duplicates in statutory accounting, and for management accounting, considering the option of a separate database.
13. How is the accounting for IT contractor agreements handled in the system? Is there a separate functionality or module for this type of cooperation, taking into account specific reporting and HR support?
When hiring a specialist, it is possible to manage employment agreements by recording the start and end dates. It is also possible to specify a different payroll calculation scheme for such employees, as they have tax differences that can be configured in the system.
14. I am concerned about the generation of printable forms for all HR and payroll documents within the accounting system and their transfer to an electronic document management system via API (e.g., Vchasno).
Currently, there is no integration with Vchasno, but this can be implemented. The company has integration with Vchasno on the roadmap for the development of our solutions.
15. How is standard HR reporting handled, including employee hiring reports; military registration reports; lists, statements, and other HR documents required for internal and external control?
A large number of issues can be resolved by filtering and exporting the necessary data to Excel. There are no specialised reports for hiring or military registration at the moment.
16. When printing the staff schedule, the ‘Monthly Payroll Fund’ tab displays the salary amount, not the actual amount to be paid. Are there plans to update this form to correctly reflect actual accruals?
The Monthly Fund column is intended to be calculated as the full net salary multiplied by the number of positions, in accordance with legal requirements.
17. How can we handle a combination of roles (not a second job)?
You can create a separate employee record and hire them for the position whose duties they are temporarily performing. It is possible to hire one employee for two positions simultaneously.
18. Is it possible to grant holiday leave in advance?
Yes, the calculation of an employee’s accrued holiday days does not block the ability for them to use it in advance.
19. How do you fill in the UNZR ID (Unique Record Number) on an individual’s identity document?
This information can be entered into the document directory.
20. Is it possible to track employees under different types of contracts (e.g., full-time staff, civil-law agreements, private entrepreneurs, and other contract types)? This would allow for accurate management accounting (reporting) for employees.
Yes, the system allows you to manage records based on the type of relationship with the employee.
21. How can we stop the accrual of holiday leave days for mobilised employees?
Using the system settings, the accrual of holiday leave for mobilised employees is stopped.
22. Is there an analysis of salary broken down into basic and additional salary? Is there a report on hours worked (all together, women separately, full-time staff separately, part-time employees)?
You can get information on accruals, broken down into basic and additional salaries, using the Statement of Calculation Types. The report is dynamically configured and allows for numerous presentation options. This report can also be customised to show data by gender or employment type.
23. Is there a plan to add a column to the staff schedule for ‘number of salaries (to be paid)’ for more accurate financial planning?
No, this is not currently planned. However, you can submit a request to support, and we will consider it as an additional issue.
24. Is there a staff schedule analysis showing vacant positions? Is there a way to make changes to the staff schedule for a specific position? Can we add or close positions? Are there additional settings for generating a printable staff schedule?
The Staffing Schedule page displays the total number of positions and the number of filled positions for each staff unit. Analytics are also available from the list of departments (organisational structure).
25. Can we enter an order dated September 1st in the current month of September?
In the demo, we entered information for August even though it was already September. The ability to enter information retrospectively depends on whether the period is closed, whether all calculations have been performed, etc. All documents have “Cancel” and “Correct” functions. Information about the original action will be saved, but changes can be made.
26. Are there plans to implement a function to print archival versions of the staff schedule to ensure historical data preservation and audit of HR changes?
No, the printing of archival versions is not planned as part of the core development. This can be handled as part of the support package.
27. Is there a function for automatically generating job descriptions, which are also used for automatically creating employment contracts (specifically, the employee’s job functions)?
No, the job description functionality is currently not available in the system. We can develop it as part of a joint project.
28. Is it possible to generate a report with a list of employees and their unused holiday leave balances as of the current date? Are there plans to implement this functionality?
Yes, absolutely! Information on holiday leave balances for a specified date is available in the system from the ‘Leave Periods’ page (as was demonstrated in today’s demo).
29. On the ‘Payroll Statement’ page, how do you fill in the P.I.T. % and M.D.F. % fields?
These fields are only used on the payroll statement for a separate payment of certain accruals, as was the case on the baseline (where only holiday pay was paid separately). For this, a specific payment group was pre-configured, where it was indicated that holiday pay should be paid ‘net,’ meaning the entered tax percentages could be adjusted. These percentages are filled in to automatically zero out the tax rates depending on the configured payment group; on the baseline, this was 18% and 1.5%. However, these fields remain editable, so you can always change the percentage or enter 0 to pay the ‘gross’ amount.
30. On the ‘Payroll Calculation Document(s)’ page, how does the ‘Recalculate Taxes’ button work?
The ‘Recalculate Taxes’ button is used to update the tax amounts if manual adjustments have been made in the Payroll Calculation Document (e.g., if a line for a one-time bonus was added). After recalculation, the tax calculation base will be increased by the bonus amount.
31. Is it possible to import individual employee work schedules from an Excel file into the accounting system, generate a timesheet based on these schedules with automatic filling of monthly absences, and automatically create printable forms from these schedules and seamlessly upload them to the database?
The system is highly integrated with Excel, and most pages can be edited directly via Excel. A timesheet can be generated based on the imported data. The integration with time tracking is not yet implemented but is on the solution’s development roadmap.
32. What are the hardware and software platform requirements for a company with over 2000 employees?Microsoft (and Innoware) recommend a cloud-based deployment. Information on the infrastructure for an on-premise deployment is available via the provided link.
33. How is a foreign candidate for a job, who has a temporary residence permit issued by another country or in Ukraine, hired?
Hiring a foreign national currently does not differ from hiring a regular employee. The system contains the necessary fields for entering passport and work permit information, which is sufficient. If additional documents need to be attached to the employee’s record (e.g., a copy of the residence permit or proof of education), these can be stored as an attachment on the ‘Individual Information’ page, where any documents can be uploaded.
34. Is there integration with the BAS/BAF product line?
There are no ready-made integrations, but they can be implemented as part of a project.
35. How quickly does it perform calculations? For example, for 1000+ people, not just one?
One of clients with 800 employees calculates payroll for everyone in less than 2 minutes. We therefore expect the time for 1000+ employees to be similar. You can also calculate payroll by department or company branch, which can speed up the process.
36. I have an important question about your Payroll module. Is there a comprehensive restriction of rights and access to sections, documents, reports, etc., within the standard access and role matrix for each user or user group?
Yes, you can restrict the right to view and/or edit pages for a single user or a group of users.
37. An order has been registered. Is it possible to cancel (correct) it? Does this happen like a credit to the primary document, i.e., with the original being saved? 2. Is it possible to separate roles in the functionality for the HR department (HR inspector, recruiter) and accountants (payroll accountant) while limiting their access and capabilities to certain information (in this case, orders)? 3. Is there a limit on the number of orders in a single document: can changes to accruals be made for a certain number of employees, or is an order type generated individually for each employee? 4. Is it possible to verify registered documents? How is this done? 5. What reports are included in the functionality? 6. How does the correction of documents that have already been registered happen?
38. What about migrating data from the existing BAS/BAF databases? Who can be the integrator (Crayon)?
For data migration, we provide Excel templates that need to be populated with data from your current accounting system. Your internal IT team or your current 1C/BAS partner can assist with the automation of filling these templates.
39. Do you provide system updates to comply with legislative requirements?
Innoware updates the system in accordance with legislative changes to the existing functionality. Updates are released before the new requirements come into effect.
40.Do you offer webinars for system administrators and users? Is there logging of actions? What about backups?
During the project, the company provides mandatory training for key users, end-users, administrators, and the internal support team (if one exists). The logging of actions and changes in the system is implemented and available for use. Backups depend on the deployment method. For the cloud, Microsoft performs daily backups that are available for deployment. For on-premise deployment, you must set up the backup process independently.
41. Is the transition only for HR? Is it possible to work with shipping documents (TTNs) and production?
Microsoft Dynamics 365 Business Central is a comprehensive ERP system that can cover all of a company’s functional requirements, including production and shipping documents (TTNs). Related webinars: General Capabilities of Microsoft Dynamics 365 Business Central: Accounting and Production (using the example of construction companies).
42. How quickly does the developer respond to legislative changes regarding payroll calculation procedures, reporting forms, and other legal norms? How is this term tracked after the controlling bodies have introduced the changes?
The speed of updates depends on the scale of the changes. For example, the new 1-PV report template, which is effective from the beginning of 2025, was ready for use in December 2024.
43. Does the solution support the accounting of employee downtime?
Yes, the system allows you to record downtime using several methods: manually changing the work time type in the operational timesheet or by using an Order for Other Absence.
44. Questions from an NGO: 1. Is it possible to create departments and link a donor who funds that department? 2. Is it possible to split an employee’s 100% rate as a percentage across different projects and link it to a donor?
If a donor is linked to a department (this can be done using analytics) and departments changed during the month, the salary will be automatically split according to the number of days worked in each department. If an employee is not transferred between departments, it is also possible to split their salary across different analytics during the process of generating ledger entries, either manually or using an Allocation Journal.
45. Please tell me how flexible the program is for necessary company customisations? Is there integration with Diia.Sharing?
The system is very flexible in terms of settings, customisations, and modifications. There is no integration with Diia.Sharing, but it can be developed as part of a project.
46. What solutions is the system integrated with?
The IW HR&Payroll solution is integrated with M.E.Doc for exporting mandatory reports. As part of our projects, we often develop integrations with third-party systems at the client’s request.
47. Can we test your solution?
You can purchase a 4-week trial access to the ‘HR and Payroll’ package for $100 excluding VAT.
48. What is the estimated timeline for implementing your solution?
The package offer is deployed within a few days after the agreements are signed and payments are received. A turnkey project can last 6-18 months, depending on the complexity of the processes and the client’s user involvement (speed of response to questions, scheduling meetings, etc.).
49. We have many customisations in our current program. Can they be migrated?
This solution is built on MS Dynamics 365 Business Central. It’s not possible to simply transfer your customisations because the solutions have a completely different architecture. However, all the necessary modifications can be made to meet your company’s specific requirements.
50. What specific information is migrated to the new IW HR&Payroll program?
You need to migrate directory data and all employee information. Additionally, you need to migrate payroll and absence data for the previous year or more for accurate average salary calculations.
51. Is it possible to independently add new attributes (fields to directories) and create our own new reports?
This is possible if you have a developer on your internal team.
52. How do overriding calculations work? For example, if an employee gets sick during their holiday leave?
The system has a check to prevent absences from overlapping. If a user attempts to record sick leave, a notification will appear stating that it cannot be recorded because an Order for Leave already exists for that period. The user must manually correct the Order for Leave, entering new dates or splitting it into two periods to use the leave days after the sick leave. The system’s “Correct” function cancels the first incorrect order and automatically creates a copy for faster processing.
53. How are replacements handled and calculated, for example, for a holiday leave period with a salary change?
You must manually register a Transfer Order, specifying the end date. Users must track this date and then re-register a Transfer Order back to the previous position. The Transfer Order allows you to simultaneously change the department, staff unit, salary, and work schedule.
54. Is the $70 license a one-time fee? Is it for one user?
The $70 is the cost per user per month. Additionally, a license for the IW HR&Payroll solution must be purchased for $20 per user per month.
55. How is the accounting for specialists on gig contracts handled in the system?
When a specialist is hired, it’s possible to maintain employment agreements, recording the start and end dates. It is also possible to specify a different payroll calculation scheme for such employees, as they have tax differences that can be configured in the system.
56. Is it possible to export payroll and holiday statements, etc., to Aval Bank?
Exporting payroll statements to Aval Bank would require a small customisation.
57. How can the payroll solution be used without integration with the pension fund via Vchasno or other means?
The company has not received requests for such integration from current clients.
58. When deploying on-premise, do we pay per user? How is the current number of users determined and by whom? Can we do this via some kind of Admin Panel? 2.Is the number of users a fixed annual amount, or are invoices issued for the previous month based on the number activated in it? 3. Is the user license personal or concurrent? If an employee works in multiple databases (companies), do they need one license or one for each database? 4. Is the user license personal or concurrent? If an employee works in several databases (companies), do they need one license or one for each database?
59. Does the license cost include solution support, or does it need to be paid for separately?
The license cost includes support for legislative changes within the solution and bug fixes if they are discovered.
60. If a company stops paying for licenses, what happens to its data (for SaaS and on-premise options)? What kind of access will there be? Is it possible to export an archival copy in this case?
If a company stops paying for the subscription (cloud/on-premise), Microsoft provides a 30-day grace period to retrieve their data or renew the subscription.
61. If the developer finds an error in the module’s algorithm on the client’s database, do they fix it directly in the database, or do they fix it internally and then the changes are distributed to all clients?
If a bug is found in the company’s solution, Innoware fixes it globally and distributes the update to all clients.
62. If the developer makes customisations to the algorithms in the client’s database during the implementation process, how will updates be installed later due to legislative changes?
During the implementation process, all custom modifications are done as a separate application. Support for the client’s application happens as part of a support project.
You can view a demonstration of the functionality of the HR accounting, time tracking, and payroll solution, which is fully compliant with the requirements of Ukrainian legislation, in the webinar recording.
