Modern enterprises often seek the advantages of going internationally and opening facilities in such regions as Brazil, China or Russia. The reasons might be various including cheaper labor cost but often also conquering foreign market and even oil drilling and mining and other activities related to mineral resources.
However crossing USA border and opening production plant overseas often leads you to decision making about ERP application for your international subsidiary. Let’s assume that you are moving to Brazil and you are using Dynamics GP here in the United States in the Headquarters. GP is not localized in Brazil and the idea to deploy it there anyway might be too unrealistic. Think about tax compliance and other regulations in Brazil. GAAP is formally followed there but there numerous requirements which you have to be in compliance with. You may decide to implement Microsiga or locally programmed accounting package. However such step will cause problems with financial, managerial control and probably internal audit. Popular packages such as Dynamics AX or Oracle Financials might be too expensive to be implemented in relatively small overseas office. Let’s take a look at overall picture and think about Business One:
1. Localized ERP solution concept. Leading ERP providers such as SAP, Oracle and Microsoft Dynamics are offering packages localized for majority of world regions. In order to offer solution which supports hieroglyphs it should in turn support Unicode where each character is encoded in two bytes. Localized ERP concept has two aspects where the first one is user interface in local language and the second one is business regulation compliance. Here the compliance is probably more critical as it is difficult to achieve in large countries such as China, Russia or Brazil
2. SAP Business One as ERP for your foreign subsidiary. It is available worldwide excluding Arabic speaking countries and localization is supported directly by SAP. In our opinion this package has the following advantages. The first one is its scalability from small business to midmarket company. If you have SAP ERP then there should be integration options for SAP B1. But even when you have non-SAP solution in the headquarters there are reasonably simple ways to implement GL level transaction move or consolidated financial reporting. SB1 exports pretty much everything to Excel from reports or custom queries and you can always export data from SQL Server database
3. Internal Audit. Let’s imagine scenario where your users in Sao Paulo are entering documents using Portuguese interface. Then you have to review these transactions in your internal audit department somewhere in Chicago. English language could be associated with user ID assigned to your internal auditor or you can even change user interface on the fly in settings
4. Server hosting recommendations. Often we see the scenario when you decide to go for SAP BO and recommend your Brazilian colleagues locate consulting company in Sao Paulo and have them provide executive demo, sell software license and do implementation. There are nuances however which you might be willing to consider. First of all foreign VAR could be not authorized to sell licenses for the United States meaning that the server should be located in Brazil. If you allow server to be hosted in Sao Paulo office then implementation is out of your control and data consolidation might be complicated. Better idea is to acquire licenses here in the USA, install application on the server in your headquarters and open it to your overseas personnel via Citrix or similar technology. Implementation should be done by US based consulting partner and only portion related to foreign country business code compliance should be subcontracted to foreign consulting organization. When you host server in your headquarters you are also saving on IT infrastructure and support budget
5. Situation in Russian Federation. Multinational companies here are competing for the distribution in such hubs as Moscow, St Petersburg and plus they are making acquisitions in Siberia region in precious metal mining. It is common scenario where multinational company is establishing office for monitoring and thinking about future expansion. Business One is available in Russian interface. We would estimate business climate as being more complex and not ‘smiling’ to foreign investments comparing to Brazilian market. Microsoft is present here and they are advertising AX. There is pretty strong local accounting package 1S Accounting. If your destination is Kazakhstan or Central Asia which are rich with gas and oil we recommend you to review Russian user interface of Business One
6. China People Republic. SAP Business One supports Unicode and it is available in Chinese. The competition includes Oracle E-business Suite and Microsoft Dynamics AX
7. Who will be doing the job? The ideal situation is to locate consulting firm which has its head office in the United States and locations worldwide or at least on the markets where you are planning to expand
8. Please call us 1-866-304-3265, 1-269-605-4904, help@efaru.com. We have local presence in Chicagoland, Southern California, 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)
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