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ERP/Accounting Selection: Microsoft Dynamics, Oracle, SAP - expansion to Europe
By Andrew Karasev
This article is targeted
at US-based mid-size and large companies, planning the expansion and opening
branches in Europe. It is for IT director, who is nowadays responsible for ERP/MRP
platform selection and following implementation. The format of the article
doesn't allow us to come up with detail specs comparison, we will be rather
giving you highlights for further research and checklist of things that you
should not miss at the consideration. We will begin with the specific of the
market and then point out to the solutions available.
Multiple Languages.
Continental Europe doesn't speak on English language natively – documentation
is in German, French, Italian or whichever country you consider. It is not
just a question of finding English speaking and writing accounting personnel –
as you will see, reading further
Taxation. Now it is becoming more standardized, however you should now
that in Europe you have to deal with
VAT (Value Added Tax), in comparison to Sales Tax in the US. VAT should be
paid not only by end consumer, but also by resellers, distributors, etc. Also
it is common practice when Services are taxable in European countries.
Government
Reporting. In the USA you report
on the federal and state levels and usually IRS and the states don't care
about the accounting system you use. In Europe, again depending on the
country and probably this tendency is more applicable when you move Eastward,
the government might have more involvement in the ERP brands selection,
recommending several systems as approved, certified, localized, etc.
Accounting
Procedures. In some countries
(France, Russia) you may encounter with the situation, when government wants
you to use recommended chart of accounts, usually generalized and geared
toward manufacturing accounting, which might be a nightmare in the case if you
are service-oriented business. Considering innovative nature of US businesses
in expansion mode – this issue should be addressed
Now we will give you
solutions highlights
Local ERP. The specific legislation and conditions of the country you
chose for your European penetration probably produced several locally
originated ERPs. As a tendency – these systems typically deal with government
reporting and available in local language only. If you decide to implement
such a solution, please understand the trade-ins – you can not find
US/international managers who could efficiently take the control over when
needed.
Microsoft Dynamics.
Microsoft Business Solutions these systems for continental Europe: Navision,
Axapta – Microsoft Dynamics NAV and Microsoft Dynamics AX (Microsoft Great
Plains/Microsoft Dynamics GP will be pulled out from France, Germany and
Holland, where it currently has some market presence). Navision & Axapta are
both localized and "approved"
SAP Business One.
Assuming that you represent
mid-size business – this system has all-in-one and the named user license
includes all the modules (you can have CRM-only client for your sales people
at ½ of the price). SAP Business One was designed with the ideas of the
Multilanguage, flexible reporting and object-oriented tax engine. Plus SAP
Business One has transaction integration to mySAP.
Oracle
Financials/E-Business Suite.
This solution, coming from Oracle, also referred as Oracle Applications should
be considered as very efficient and reliable. It is also localized and has
very long market presence history in
Europe. Oracle comes
with J2EE/EJB/Java customization & development
IBM Lotus
Notes/Domino. It is not an ERP –
it is rather the platform, Lotus is very popular in Europe and you should
consider and respect it if you purchase existing company, using Lotus for
document workflow
Integration,
Customization & Reporting. You
should consider European branch ERP integration ability to your corporate ERP
in the USA and management reporting compliance.
Please do not hesitate to
call or email us: USA 1-866-528-0577, 1-630-961-5918
help@albaspectrum.com About the Author Andrew Karasev is Chief Technology Officer
at Alba Spectrum Technologies (
http://www.albaspectrum.com
http://www.enterlogix.com.br
http://greatplains.com.mx ) - Microsoft Business Solutions Great Plains,
Navision, Axapta MS CRM, Oracle Financials and IBM Lotus Domino Partner, serving
corporate customers in the following industries: Aerospace & Defense, Medical &
Healthcare, Distribution & Logistics, Hospitality, Banking & Finance, Wholesale
& Retail, Chemicals, Oil & Gas, Placement & Recruiting, Advertising &
Publishing, Textile, Pharmaceutical, Non-Profit, Beverages, Conglomerates,
Apparels, Durables, Manufacturing and having locations in multiple states and
internationally.
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