SAP Business One Case Study Multinational Corporation

Apr 7
09:07

2012

Andrew Karasev

Andrew Karasev

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This small and mid-market ERP application is especially useful when your organization is in international expansion. In our scenario this is compact but well known beverage producing corporation with headquarters in United States and regional representations in Latin America and Brazil as well as in Eastern Europe.

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Before we give you details it is good opportunity to give you brief introduction in international accounting software market and its challenges.  Here in the USA taxation is fairly simple especially for somebody who is selling in B2B environment.  There is no VAT (Value Added Tax – popular in Europe) and this fact often means that if you are producing something for your dealership channel then there is no tax for you.  Under such conditions you can pick any ERP package and implement in your central office including Business One.  In the foreign countries however you may expect tight control and regulation from the side of federal and state government.  This means that you cannot just roll out the same accounting system there if it is not ‘localized’ for the country or region.  For example Microsoft Dynamics GP formerly known as Great Plains is not localized in such regions as Continental Europe,SAP Business One Case Study Multinational Corporation Articles China or Brazil.  SAP B1 is available in local versions in these countries.  Let’s now come down to details:

1. Bill of Materials logic and basic ERP.  It is simple and in our opinion every package with primitive manufacturing would be a good fit.  The rest was pretty generic: selling in B2B model, purchasing, powder transfer between inventory warehouses and collection management.  Initially company had Great Plains implemented but when they acquired production plan in Amazonia they realized that GP doesn’t do the job over there.  It would be to challenging to customize application in-house to automate complex tax rates and formulas as well as translate interface to Portuguese

2. Pilot project in South America.  This was back in 2005 and SAP office in Sao Paulo was interested in pilot especially when customer is well known multinational.  When you are ‘pilot’ you should be ready to some bumpy turns.  There were some especially related to local taxes in Manaus and Amazonia

3. Integration to Headquarters for Consolidated Financial and Managerial Reporting.  Company image was created in GP to get GL entries imported and the reporting was done in FRx (intercompany reporting trees).  Export from B1 was done directly via SQL queries and saving results in text CSV file.  These files were shipped to the central server and records were broad into Great Plains via Integration Manager as GL entries.  The solution was successful however in few years the decision was made to switch to BO in the headquarters as well

4. Subsidiary in Russian Federation.  In Moscow as well as in Sao Paulo you should expect very detailed and complex regulations and local firms prefer local accounting packages with strong compliance.  In Brazil it is Microsiga and in RF it is 1C Accounting (1S Bukhgalteria).  You may question ‘why don’t we just implement 1C and forget about the problem?’  This approach should work in local subsidiary but it would be a mess on the level of the whole corporation.  How do you do such required documents as Consolidated P&L and Balance Sheet?  How about internal audit?  And even if B1 doesn’t print Balance report for tax agency it is better option.  You can often find the situation in RF where international accounting product exports to 1C and final quarterly and annual reporting is printed from there

5. Please call us 1-866-304-3265, 1-269-605-4904, help@efaru.com.  We have local presence in Chicagoland, Southern California, Atlanta Georgia, South West Michigan, Houston and Dallas areas of Texas. We serve customers USA and Canada nationwide and internationally via web sessions and phone conferences (Skype is welcomed).  We are working on Brazilian ERP consulting market in Sao Paulo since 2004