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Application of entries as one of the major concerns of Russian accountants when switching from local accounting system (1C) to Microsoft Dynamics NAV 2018

When users post customer or vendor business transactions, they should always consider the process of order matching – application of posted invoices to payments or credit memos. It is generally important, as unapplied entries are treated in accounting as separately receivables and payables. Thus, having both invoice and payment posted in the system without separately applying them to one another will result in discrepancy of accounting books. For Russian accounting processes it is even more critical. Quite many accounting processes and operations depend on the correctness of application of customer and vendor entries: In Russia quite many operations are done via prepayments. Prepayments are booked on separate accounts, and correct application of entries moves the prepayments from those accounts to normal settlement accounts. Moreover, when vendor receives a prepayment from customer, a VAT from advance payment should be booked. Thus not applied customer entries will result in non-deducted VAT from advance payment in time, causing negative effect on the cash-flow, as more VAT will be paid to government than needed (https://community.dynamics.com/nav/b/russianerpexperience/archive/2016/01/19/vat-treatments-in-russia-recommendations-to-vat-setup-of-posting-groups-in-erp-systems). This gets even worse when there are currency transactions or transactions, nominated in foreign currency (conditional units https://community.dynamics.com/nav/b/russianerpexperience/archive/2016/04/16/conditional-units-russian-alternative-to-currency). Application of invoice to payment results in calculation of currency exchange rate differences. There is also a legislation rule that says that if there has been a prepayment, the consequent invoice should be booked at the rate of the prepayment (in the amount of prepayment). I’ve blogged about that earlier here: https://community.dynamics.com/nav/b/russianerpexperience/archive/2016/06/30/russian-specifics-of-processing-currency-invoices-exchange-rate-differences-and-advance-payments, but the application process exactly is the trigger for that correct posting. Thus application of entries is a very important and inevitable process. However manual application usually causes protests from those Russian accountants that got used to work with 1C system, as they usually claim that in 1C the process of application has been fully automated, and Dynamics NAV is not capable to do this automatically, thus they need enormous additional time to do the accounting and close the books. It is not so! First of all, the process of manual application of entries in NAV is not that difficult and time-consuming when users learn how to do that and follow this process on a daily basis. Then, the application itself might not necessarily be done via drilling down to posted entries and selecting them via separate application process. There is always a (good) option to select posted invoice to be applied to payment already in the line of bank financial journal before the posting of daily bank statement transactions, there is a special field for that – the application will take place automatically then. On the other hand, local 1C accounting system is not that automatic either. There are two ways of handling the transactions in 1C: on contract level and on document level. The “on document level” option means that in each payment order you post in 1C users need to select an invoice(s) that matches this payment order. This process is exactly the same as described just earlier for NAV when posting the bank statement – so basically 1C

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Announcing the preview release of subscription level budgets via ARM APIs

It now becomes easier to control Azure costs. Find out more at Microsoft Azure website.

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Dynamics NAV 2013 and Dynamics NAV 2013 R2 end of mainstream support

We highly recommend all existing users of out-dated systems make sure they upgrade to the latest version. Read more at Microsoft website.

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Microsoft Dynamics NAV 2018: what is Docker and why do we need containers?

Generally, Docker allows faster development cycle, faster results and less resource consumption. Find out more at MSDN.

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Latest news on Dynamics 365 Russian localization

Alexander Ermakov shares insights on when the new version “Tenerife” for the complex Russian localization when be released and what to expect from it.  Find out ore at MVP Blog.

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Microsoft announces Dynamics 365 (CRM) and LinkedIn integration

These two tools that now come together, help you focus on what matters most – selling. Find out more at Microsoft TechNet.

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Dynamics Profile: Microsoft MVP navigates complexities of Russian ERP market

Source: MSDynamicsWorld.com Author: Linda Rosencrance For the past 11 years, first-time Microsoft Dynamics NAV MVP Alexander Ermakov has been working for Awara IT in St. Petersburg, Russia, an IT company that implements ERP solutions, including Dynamics, and provides business consulting services. Awara supports international companies developing their businesses in Russia, in part by sharing its knowledge of local government requirements, says Ermakov, a senior consultant and partner at the company. For Microsoft, making inroads into the Russian ERP market has been full of challenges. The company is facing intense competition in the enterprise market from 1C, a local ERP provider, he says. Awara is a 1C partner as well as a Microsoft partner. “Microsoft’s share of the ERP market in Russia is approximately 12 percent, but I think it will be growing in the small business segment,” Ermakov says. “Microsoft is working with us to develop an out-of-the-box solution to allow small business to use Dynamics NAV without huge expenditures for implementation.”   Favoring local offerings Microsoft’s small ERP market share in Russia is due in part to the government’s policy of “import substitution,” or replacing foreign software products – primarily from the United States – with domestically produced products, Ermakov says. “They are trying to decrease imported software and increase usage of local software to help the local IT companies, which have very strong lobbies in Russia,” he says. In fact, Russian law requires that government agencies only implement the ERP systems of 1C and other local companies, he says. And although there is no law forcing private companies in Russia to implement ERP systems from local companies, the reality is that many large companies in Russia, including oil and gas firms, are partly owned by the government. “This is one of the reasons Microsoft is focusing on the small business market in Russia,” Ermakov says. “In addition, Microsoft thinks that the small business market is a promising market worldwide, not only in Russia.” Despite the heavy competition in the ERP market, Microsoft is very active in Russia providing other products. “Microsoft is everywhere in Russia in terms of its operating system – you have Windows everywhere,” he says. “We have very, very few Macs in general in Russia. Microsoft is planning to also build up data centers in Russia because we have restrictions for personal data protection [the data has to be stored inside Russia]. In general, Microsoft is very active in Russia with many products. But because Microsoft is feeling the pressure for enterprise companies, it’s focusing on small businesses.”   From Finance to IT and NAV Ermakov, who received his MVP award in October 2016, started working with Dynamics NAV around 2006 when one of Awara’s customers, a global chain based in Finland, opened an office in Russia and wanted to implement the product. “We were that company’s global partner for opening in Russia for legal services, outsourced accounting, recruitment, and other business consulting. Then we decided we could take over their IT as well and implement NAV,” he says. “However, we

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New challenges in Russia for storing ERP databases

Author: Alexander Ermakov Source: Microsoft Dynamics NAV Community More than a year has passed since this law entered into force and it is interesting as nobody yet understands how to apply that. Regardless numerous discussions, at the date this blog article is published, there are still unclear topics and no court practice in Russia. Awara IT Solutions, being a part of Awara, is closely related to this legal topic, as many of our customers have to deal with implications of this new law. I feel it would be reasonable to describe the problem and give few recommendations on solutions to avoid much risk. According to this law, since September 01 2015, all personal data operators will be required to keep personal data of Russian citizens in Russia. Basically, it requires that databases that store personal data should be kept on the servers on the territory of Russia. One say that it has been introduced in order to protect personal data of Russian citizens from foreign “secret services”. Other say that it has been made in order to allow Russian authorities to have easier and quicker access to the data of companies, as it is much easier to do that on the territory of Russia than demand it from other country. Below is the explanation of the principles and suggested options of planning the architecture, if you plan to deploy ERP system for implementation in Russia.   What data are personal data? Personal data refer to any information which allows identifying a person, including: Email address if it includes surname and company name Bank card number and CVC in certain cases In some cases, mobile phone number (classified as “sensitive” personal data) For example: ivan.ivanov@post.com = personal data ivan@post.com not personal data It should be noted that even if data do not allow definite identification, such data could still be classified as personal data under certain circumstances. Roskomnadzor (federal regulatory agency) is currently working on a definition of personal data by developing criteria for personal data. That is, contact persons of company, agreements, and even Active Directory user names are also a subject of that law.   Which companies will be subject to the new requirements of the law? Russian companies registered in Russia Foreign companies with representative offices and branches in Russia Other foreign companies if the performance of their activities is related to Russia and/or involves personal data of Russian nationals. For example: If a Russian national employed by a Russian representative office is able to view and post information about him/herself in the career opportunities internal system of a global company and the server in which his/her personal data are stored is abroad, this company will in such case be in breach of personal data localization requirements in Russia.   What are the options for architecture of the solution? Most of our customers are foreign companies, rolling out their customized solutions to Russia. Many of them desire to have one database for all the countries, storing and administering it in one place, somewhere in the

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