EFaru Combining Dynamics AX and SAP Business One as Corporate ERP System

June 10, 2011 - PRLog -- If you have Axapta implemented in the headquarters as Corporate ERP application – this system might be non-proportionally complex for implementation in the foreign subsidiary, where you may have only market watch group.  There is always the way to do international accounting directly in Excel.  However this way might produce numerous format and mess in central consolidated financial reporting.  Plus, it might open the door to centralized control compromise.  If your foreign facility is exposed to VAT or Sales tax audit – it is much better to have something in place, where tax is accrued automatically with current province or federal tax percentages rates.  We recommend you to implement so-called localized accounting application in your overseas branch.  Let’s review the options and scenarios.  Here we assume that your central ERP hub is implemented on Microsoft Dynamics AX platform:

1.   Corporate ERP Localization.  It is natural idea to implement the same ERP application in your international subsidiary as you have already implemented in the Headquarters.  However, you should check with its publisher if there is the version in the targeted language and if it is currently up to date with local country business related legislation.  International GAAP is one thing and you may believe that it is enforced in the majority of the countries.  But think about such issues as provincial and municipal sales taxes (internationally you may find out that VAT or Value Added Tax is very popular) being automatically updated as legislation changes.  Another angle to look at the international compliance is this.  In USA we have such forms as 1099 (where IRS is trying to have your supplier accountable), W2 and W4 (annual forms for your employees following 1040 compiling in April of the following year).  These things exist in the USA only.  However they have their analogies internationally, where each country has its own tax agency, parliament, senate or similar legislating tribunes and authorities

2.   Good News about AX.  This upper mid-market Corporate ERP application is localized in the majority of regions, including USA, Canada, China, Russia, most of the Europe (as it was originally designed in Denmark with the goal to cover Germany, Scandinavia, Italy, France, Spain, Holland and smaller countries in EU).  Axapta base MorphX was adapted to support Unicode based alphabets, where instead of letters they use hieroglyphs – typically you should think about such languages as Japanese, Korean, Chinese, Vietnamese, Thai (in Thailand).  It might be a little bit unusual to think that Arabic language is actually ASCII compliant and doesn’t require Unicode to cover famous Arabic scripts.  This system is available in Arabic as well.  Russian Federation is also covered and especially it’s rapidly changing business related instructions (the resent famous one is blocking vegetables import from Europe after e.Coli bacteria terrified Germany and was initially mistakenly associated with Spanish cucumbers).  So, if you are comfortable expand internationally with Axapta and your targeted office is large enough for that ERP to take care – looks like you are good to take that route

3.   Small International Branch.  As we already mentioned in the header – you may find out that ERP implementation quote from your existing Dynamics Reseller in United States (plus localization module implementation which is likely to be subcontracted to local consulting firm) is too high and not really proportional to the size of the business overseas.  If you recognize your scenario, then you should consider several options.  First of all there are locally programmed accounting systems (somehow businesses are accounting their operations locally, pay taxes and are audited by local tax authorities).  For example in Russian Federation there is very popular local package 1S Bukhgalteria (which could be translated into English as 1C Accounting).  If you are thinking about Brazil – there is popular Accounting, ERP and MRP named Microsiga.  Next options to consider should be global ERP brands, such as Oracle, SAP, Microsoft Business Solutions.  We looked at famous brands and came to the conclusion that the best offer (including lowest software licenses and implementation consulting hours costs) is coming from SAP with their small business package SAP Business One.  It is not a secret that small business accounting market is very competitive with such popular offers as QuickBooks, Peach Tree, MYOB.  However the advantage of SAP B1 is the fact that SAP decided to internationalize this small business accounting, ERP with elements of discrete manufacturing, fields service/warranty contracts, requisition management and client relation management.  Initially this application was architected and programmed in Israel with the target to make it available internationally (except Arabic world unfortunately).  This fact probably contributed to its success in SAP global promotion campaign

4.   SAP B1 Hosting Recommendations.  Current version 8.81 (information is correct as we are compiling this paper in June 2011) supports all the languages in one flavor.  The same is true about version 8.8.  Earlier releases, such as SB1 2008 and 2005 had A and B flavors (where A was typically covering USA, Latin America and Europe and B China, Brazil and other countries).  We strictly recommend you to consider hosting all international companies on the same SQL Server in the US based headquarters.  In this scenario is followed your company management has access to international accounting database via English SAP B1 user interface.  In fact language could be switched on the fly.  International users should get access via Citrix, Microsoft Terminal Server, sometimes VPN is a good thing to consider

5.   How to we combine AX and SB1 based companies in consolidated financial reporting?  Good question.  Traditionally Axapta financial reporting, such as Balance Sheet, Profit and Loss Statement, Cash Flow Position were done in FRx 6.7 and earlier versions.  In version 2012 there is recommendation from Microsoft Business Solutions to switch to newly designed tool Microsoft Management Reporter. SAP BO has very flexible mechanisms to export virtually everything, including GL trial balance to Excel worksheet.  Both FRx and MMR support Excel worksheet based Row format or Reporting tree consolidation.  Second popular approach is to create shadow GL only AX company for your international office and export records from SB1 and import them into shadow GL company every night or specific period of time

6.   Customization tools comparison.  Both AX and Business One are open to custom programming.  In the case of Axapta it is typically done in MorphX IDE in X++ programming language (which is close relative to C style coding instruments, such as C itself, C++, C#, Java).  There might be an initiative to do X++ coding internally, however Microsoft Business Solutions encourages you to subcontract it to ISV or Technology Consulting organization.  And we understand this recommendation, as X++ also supports such features as three tiers application, table and forms, internal business logic.  Now let’s look at Business One.  Here custom coding is done in SDK, where the tool of choice is probably Microsoft Visual Studio and you can pick your favorite programming languages.  Code samples are available in C# and VB.Net.  SAP also encourages you to subcontract modifications to certified ISV

7.   Please call us 1-866-304-3265, 1-269-605-4904 (for international customers, where our representative pick up the phone in St. Joseph, MI call center).  help@efaru.com  We have local presence in Chicagoland, Southern California, South West Michigan

Andrew Karasev is Great Plains Certified Master, MVP, help@efaru.com 1-866-304-3265, 1-269-605-4904. He is also the initiator of eFaru project http://www.efaru.com and founder of Alba Spectrum information space