Meet Local Compliance with Microsoft Dynamics AX
If you are an organization with multiple locations across the world, you understand how complex reporting and operational visibility can be. With different languages, currencies, and laws, bringing together data from all these separate entities can be a nightmare.
Doing business in different countries means you must comply with country-specific laws, regulations, and common business practices. If your daily business transactions and operations don’t meet the legal obligations of that particular city, state, or country, there are severe penalties. Non-adherence to these laws and regulations can lead to crippling fines, lawsuits, government penalties, and business closures.
Corporate compliance is essential if you want to continue growing abroad. With a wide range of laws and standards that are constantly changing, companies use software adapted to meet country-specific laws or regulations to stay up-to-date.
How to Meet Local Requirements with Dynamics AX – Global ERP Software
There are a lot of reasons why companies choose Microsoft Dynamics AX to manage their business processes across the world. It is easy to use, customizable for specific industries, and has project accounting and financial reporting capabilities second-to-none. But, the big drive for multinational organizations is the software’s scalability and localization capabilities.
Dynamics AX is globally available, with 36 country localizations and languages accessible in all versions later than AX 2009. If you are in these countries, localizations (local laws or requirements) and translations (languages) are available out-of-the-box in Dynamics AX, making it easier to implement and update. New countries are continuously being added and channel partners have the ability to create their own localizations and/or translation in the countries not currently represented.
The purpose of using software like Dynamics AX is to standardize your processes – which is not always straightforward when dealing with local legal requirements and foreign currency. For example, let’s say you are the CEO of a manufacturing company based in the United States, but have divisions in England, Germany, and Singapore. Sales tax reporting is handled very differently in all of these locations but you want to standardize it for faster, more accurate reporting.
Microsoft has developed specific commercial requirements, language, and non-vertical, national, or international functionality to address specific tax accounting and financial reporting requirements for these countries. With Dynamics AX, localizations are already in place to handle sales tax reporting for each of these countries requirements.
Why Choose AX if You Want to Grow Globally?
Multinationals want one system with multiple legal entities to evolve and adapt to their changing business needs. They choose Microsoft Dynamics AX because it provides the foreign-currency conversion and localization capabilities they need to grow abroad.
Here is what makes Microsoft Dynamics AX stand out from the other global ERP software solutions:
- User Experience
With Dynamics AX, users in every location are able to have the same experience, using the same features and functionality within the software. All of their forms and screens will be the same but using their base language and currency. This seamless experience is brought to a new level with the mobility and cloud options available in the latest version of Dynamics AX.
- Intercompany Accounting
Any company with subsidiaries or multiple related entities needs a solution that can reconcile intercompany transactions to avoid counting transactions twice and generate accurate financial statements. Dynamics AX can be used for single-level and multi-level consolidations across legal entities, consolidations with multiple reporting currencies, consolidations with eliminations, and a whole lot more.
- Global Consistency
Consistent business processes drive operational efficiency and economies of scale. With one single system and process in place, you are ensuring your customers are happy with the same experience and/or product and your employees from across the globe have a similar experience within the system no matter what their language or location is. You can also enforce that standardization but with the flexibility to modify any rule. For example, when doing business in Mexico, you can send customers an invoice before you ship the goods. Whereas in the US, you can’t send an invoice until the goods have been shipped. You still keep the same process of creating a sales order, confirmation, invoicing – just in a different order.
- Share and Sync Master Data Records
Dynamics AX has a feature that allows you to synchronize master data records across multiple instances called Master Data Management. With Dynamics AX, you can set up 6 fixed dimensions and they can all be different per legal entity. By creating and maintaining a single copy of master data, you guarantee the consistency of important information across the globe, from customers and vendors to employees and product entities. For example, when making transactions in the US you don’t need VAT info on general journal entries, but in Germany you do. When setting up a Charter of Accounts, the system shares the same chart and recognizes the same account number but the details will be different depending on location.
- Localizations and Translations without Customization
With Dynamics AX you don’t have to worry about customizations to make what you’re doing in the United States fit the other geographical locations. Dynamics AX provides the tools out-of-the-box so local requirements can be met with localizations.
Remember, failing to comply with legal requirements will put an end to your dream of global expansion and international growth. If you are considering a new solution to help get you there, contact Rand Group for more information about Dynamics AX. At Rand Group, we have a strong Dynamics AX team with experience implementing and supporting Dynamics AX in multinational companies across the world. Our AX team know the requirements for specific geographical locations and stay up-to-date on ever-changing legal requirements.
– Software Delivered as Promised. No Surprises.