Multinational company has to do its homework in selecting accounting package for its overseas office. Probably the first question is about localization of the product in the foreign country. Good example is expansion to Brazil and having Microsoft Dynamics GP deployed in the headquarters.
GP is not offered in Brazil and it is not localized there. We have seen numerous requests about rolling out Great Plains for the office in Sao Paulo by translating several forms into Portuguese. Translation into foreign language is reasonably simple project however compliance to the foreign country tax rules is a way more complex and we do not recommend to try to customize the system in-house for this purpose. The example above actually is one of the reasons for the multinationals to have several ERP platforms integrated into the ERP in the headquarters via GL consolidation or in simple scenario via consolidated financial reporting. Business One is localized in major world regions including China, Brazil, Russia and Europe and it is good candidate for the ‘spoke’ in ‘hub-and-spokes’ ERP model. Let’s review important points to think about:
1. Deployment on the central server located and supported in Headquarters in the United States. Let’s consider the hypothetical situation where company contracted local consulting firms in several countries to implement SAP B1. In each country you now have local server and unique chart of accounts designed by local consulting team. Even considering the fact that ERP platform is the same its consolidated financial reporting is somewhat difficult to implement as each company has different account structure. Each local controller is now has his own consultant in each respected country and there is no central coordination by the consulting partner in the United States. Let us give you better picture. Consider installing all company databases on the same SQL Server in the HQ and generic implementation for all the countries by consulting partner in the USA. Each country has some specifics usually related to tax reporting and this portion is subcontracted to the consultant in specific foreign country. Such element as GL Chart of Accounts is similar in each company and financial reporting is pulling data from the same Server. User interface is open to international user via Citrix, Terminal Server or similar technologies. All international offices required to have reasonably good internet connection and guaranteed bandwidth
2. Licenses Acquisition. This question is very delicate as if you approach consulting firm in the foreign country one of their objectives is to sell you software licenses. At the same time they are likely authorized to sell software in their country meaning that the server would have to be installed in the foreign country as well. If your goal is centralized deployment from the server in the United States then the licenses should be obtained there as well
3. Coordinated Implementation with Country Specific. Multinationals usually have tight coordination and unified standards for all their domestic and international subsidiaries. Local country specific is definitely thing to review and be in compliance with however these specifics do not provide you competitive advantage and should be considered as important but not primary goal. Compliance modules should be subcontracted to local partner but under strict coordination of your IT and probably involving your strategic consulting team in the USA
4. 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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