Enterprise Resource Planning (ERP)

Microsoft Dynamics NAV refers to the enterprise management systems of ERP class (Enterprise Resource Planning). This system is designed to manage all company resources – funds, production facilities, personnel, etc. The main purpose of ERP class is to provide a single information field for all structural units of the enterprise and provide full accurate information for the management decision-making. ERP-system model can be implemented both in a single complex (software application) and in the combination of several systems that are integrated with each other. The most common unified ERP- complexes are: SAP, Oracle E-Business Suite, Microsoft Dynamics AX, Microsoft Dynamics NAV. They belong to the same class of ERP-systems but differ in specific nature, functionality and costs.

Advantages: Implementation of ERP-system at the enterprises provides a high level of data reliability, efficiency in obtaining the necessary information, common information presentation for all departments. Mechanisms of role-based access to the system data provide a reliable level of data protection. ERP-system automates all major and minor business processes - financial accounting and distribution, manufacturing and logistics, human resources and customer relationship management. Well-run management system significantly increases the level of capitalization of the company and its attractiveness on the market.

Implementation details: The main requirements for ERP system implementation are rather rigid for the organization of the company business processes. Documentation flow requirements, data entering the system on time, the definition of accounting principles and the requirements to the analytical data are the basis for the organization and functionality of ERP-systems. Risks associated with changes in the internal processes of the company require special attention during the implementation.

Dynamic architecture: With the development and changes in business ERP management system changes as well. New system modules are implemented, additional integration components are developed, and remote usage possibilities are extended. As a result ERP system quick adaptation to the current changes is one of the key factors that determine the quality of the developed solution.

Integrated accounting system: Degree of integrated management and accounting in ERP is another crucial criterion of its quality. ERP system implements different accounting types at the same time - management accounting, financial and tax accounting, supply chain management, project management, production accounting. Possible maintaining of each type of accounting in a single system in accordance with its features provides high efficiency of ERP solutions in the company.

Management accounting: Accounting according to corporate goals and features provides flexible business management and control over its key parameters. When building ERP system that combines separate legal entities or subsidiaries, common inter-regional standards and rules are considered that are above the local statutory accounting and tax regulations. Possible maintaining a common management accounting, local financial and tax accounting in a single ERP system is one of the main requirements of geographically or legally distributed structures.

Accounting and tax records: Accounting and tax records are implemented in accordance with the law and included in the overall financial records of the company. Compliance of the system accounting functionality with local legislation allows focusing on core business objectives without loss of time for minor procedures.

Supply chain management: building uninterrupted supply, distribution, production system within ERP complex with control over supply terms and optimal load storage and logistic resources of the company. Trade flows accounting with planning functions allows improving the company's profitability by reducing supply and shipment costs.

Project management: Accounting and control over the implementation of projects on time, financial, resource parameters. In this term ERP systems border with the Project-systems class according to its functions. The combination of the project functions and financial monitoring functions provide full control over individual projects or a group of projects.

Manufacturing: Accounting for production capacity, machinery centers, forming shift production goals, end product output accounting, maintaining routes and specifications. For manufacturing companies, as a part of ERP platform, mechanisms of building production accounting are separately represented, including possible control over all production and semi-finished products cost components. Integration links of ERP-system with the production engineering support systems are often implemented to build a full-scale production accounting. Such solutions improve processes management at all levels.