May 24, 2024


Bring Out Techno

Microsoft Dynamics NAV/AX Implementation – Russian ERP Market

In this small article we will be giving you highlights on Microsoft Navision and Axapta implementation, customization, tuning and reporting in Moscow and on Russian ERP/MRP market in general. We suggest this information to IT directors of multinational corporations with connection to Russia, Kazakhstan, Central Asia. Recently – in September 05 Microsoft Business Solutions renamed Microsoft Great Plains, Navision and Axapta into Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics AX, following the directions of Project Green. We will be discussing localization, government reporting, language translation.

o Localization. Microsoft has two ERP products for Russia and CIS – Microsoft Dynamics NAV – Navision and Microsoft Dynamics AX – Axapta. Microsoft Dynamics GP is not localized and is not available in Russia from Microsoft Business Solutions Moscow. You can purchase the license from MBS Partner in US and implement Microsoft Great Plains in Russia, but you will face government reporting issues

o Language. Both – Microsoft Navision and Microsoft Axapta have interfaces translated into Russian and to some extent you can have multilanguage version, the reason we are rising multilanguage issues – in order to control your subsidiary in Russia you should have at least English interface and reporting.

o Government Reporting. Russian tax reporting is somewhat relatively conservative and the regulation here is rather strict. Also, tax inspectors assume that you use standard chart of account and do transactions on the General Ledger level, following accounting transactions prescribed rules.

o Chart of Accounts & Transactions. Standard chart of accounts has enumerated codes for accounts and geared toward manufacturing accounting. Again – accounting code prescribes you do transactions in General Ledger. The regulation would be not an impediment, if you are manufacturing company and tune your manufacturing ERP / MRP module to use codified and state-approved accounts/transactions. However if you are service business, especially high-tech oriented – the code is a pain for you, because Sales Order Processing or Service modules are typically designed under the assumption of accrued accounting, without posting your profit and expenses through “goods in production” type of accounts.

o Cash Based Accounting. Technically you can use either one: cash based or accrued methods. However, the accounting code was designed with the idea of the cash method.

o Implementation Partner. For the company, having headquarters in the US/Europe, consulting company selection is important question. Technically implementation should be done in Moscow, but the implemented ERP should be “consolidated” into Corporate ERP, an so – the communication between consulting company and your headquarters based IT and Finance department should be very efficient.

We encourage you to analyze your alternatives. You can always appeal to our help, give us a call: Russia: (095) 918 3314, Germany: (0177) 8349 806, USA 1-866-528-0577 or 1-630-961-5918, [email protected]