Sap Business One Erp For Your Foreign Subsidiary
ERP system selection for foreign branch is often a puzzle for multinational company
. Something that is often found implemented in headquarters here in the United States could be not available in the country where you are opening new office. For example if you are using Microsoft Dynamics GP and acquiring mine in Brazil then you should know that this application is not available down there. In this small publication we would like to talk about international ERP specifics and review SAP B1 option. We will make several paragraphs and then try to answer popular questions:
1.ERP localization concept. It has two aspects. The first one is compliance to foreign country legislation including tax codes and fiscal and industry reporting. Sometimes IT people say that it is not a big deal as we can print forms and reports in Excel. Well actually it depends on the country. Here in the USA compliance is relatively simple. We have 1099 and if you run payroll internally then it is W2 and few other forms. But if you review such country as Brazil then you may figure out that corporation is subject to SPED (Public Digital Bookkeeping System) reporting. SPED is reported in XML format over the internet to the government hosted servers. We dont believe that you would be comfortable to do it in Excel or program in-house. Second aspect of localization is translated user interface
2.How does SAP B1 fit here? First of all it has integrated Multilanguage support. It means that there is no need to install add-on in order to enable specific foreign language. You can switch it directly in settings or associated with named user. Lets mention popular languages: English, Spanish, Brazilian Portuguese, Chinese, Russian, Japanese and Korean and this is just the beginning of the list. But how about compliance? Is it all covered in core application? Again it depends on the country. Such complex things as Brazilian SPED are implemented in third party add-ons. Tax tables and formulas are often available directly from SAP
Lets now answer questions:
Q. We have Dynamics GP in our headquarters in Chicagoland. We have it also implemented for our subsidiaries in Mexico and Argentina. Now we are acquiring manufacturing facility in the state of Sao Paulo where we have to address SPED and other Brazilian requirements. It looks like we are committed to GP. Would you recommend work around?
A. We have seen similar case and here is how it was resolved. Company implemented Business One for its production plant in Manaus and established ongoing integration. GL transactions were exported directly from SQL by scripts and saved as text files. Then from GP side they were imported via Integration Manager GL integration. At this point they were ready for building consolidated P&L and Balance Sheet in FRx as well as SB1 was open for internal corporate audit
Q. We are Canadian mining company and we also use Great Plains as our corporate ERP application. We are purchasing mine in Siberia Russian Federation. We had numerous meetings in Krasnoyarsk as well as in Toronto and Moscow. We know that even if SAP BO is available in Russian interface it still doesnt cover all the aspects of government reporting, payroll and payment to government funds. Various consultants explained to us that it is used as tandem with 1C Bukhgalteria. If this is the case then maybe we can do the same with GP?
A. RF has complicated and constantly changing regulation. GP however is not available in Russian. This might be done in Modifier by translating English string resource into Russian for several forms. You need to make decision internally. Good point about B1 is that it is available in local language and is supported by SAP office in Moscow where they are trying to cover compliance. This work is in progress and we dont know the future. Great Plains will be at your own responsibility but as you have it in headquarters you may avoid such things as GL level consolidation and run consolidated reporting in Microsoft Management Reporter or FRx
Q. Our controller in China wants us to host SB1 server in Beijing and contract local consulting form for the implementation. He indicated that in China they have complex regulation and it is not practical to do implementation by US based consulting organization. What is your opinion?
A. There are pluses and minuses. We would recommend you to host server in the headquarters. Implementation should have two components. The first one is installing template company with standardized GL chart of accounts and modules settings. This part should be done by your general contractor in US. Second component is Chinese localization and that one should be contracted to consultants down there. Consider opening client interface via Citrix. Your overseas controller has to do his job and one of his primary concerns is compliance to local legislation. We think that our approach will cover his concerns as well as let you keep control over the data
Q. We are Moscow subsidiary of multinational company. If we have to deploy 1C Accounting anyway then probably we dont need SAP B1. Why we are talking about it here?
A. The answer depends on your situation. If your group has only one foreign office and it is in Russia then 1C should probably do the job. However if your company has facility in numerous countries then think about your headquarters based IT. If in each office you implement local accounting package then consolidation would be a nightmare as it should have individual procedure for each application. Also we discussed options with consulting firms in RF. If you have relatively small operations in Russia then reporting could be done in Excel
Q. We deploy All-in-one in the central office and flavors of Business One in our locations across the globe. Now we are planning to open facility in Saudi Arabia. We have never seen Arabic languages support. Is it available?
A. In core functionality Arabic is not supported in SAP B1. We have seen scenarios where people in the Middle East are comfortable entering transactions in English. Invoices might be printed in Crystal with partial Arabic legends
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, Atlanta, South West Michigan and Houston and Dallas areas of Texas. We serve customers USA, Canada, Mexico and Brazil nationwide and internationally via web sessions and phone conferences (Skype is welcomed). Our consultants speak English, Spanish, Portuguese, Russian and Chinese. We feature our expertise is in International Business. We provide second opinion in SB1 data migration, customization and reporting
by: Andrew Karasev
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