Nearshoring cooperation with German consulting company

A German consulting company with several departments across Europe was looking for a reliable partner to entrust with the installation of a new database and the upgrade of the Microsoft NAV 2009 system to a newer version. The need for the system upgrade was related to legal amendments and the requirement to have a modern ERP system adapted to changes in the tax law. The new regulations came into force in both Germany and Great Britain, and concerned electronic banking (The European Union PSD II Directive – Payment Services Directory) and financial statements (MTD – Making Tax Digital in Great Britain), and was the decisive factor in upgrading the ERP system to the newer version.

Challenge

The German customer who asked JCommerce to help with the ERP system upgrade used Microsoft Dynamics NAV 2009. This system did not have functionalities allowing for digital tax settlements. Furthermore, the client reported the need for creation of a new database for the London department and another for the client’s headquarters in Munich.

In April 2019 the British government introduced changes to the area of tax settlements, specifying a new way of submitting Tax Return reports to the English Tax Office (Her Majesty’s Revenue and Customs). The changes, known as the Making Tax Digital program, are designed to facilitate tax settlements for both natural persons and entrepreneurs. The new legal regulations forced entrepreneurs to switch their ERP systems to one that would have predefined settings which were relevant in terms of the legislation of the given country. It was also a challenge to adapt the system to the amended legal regulations in Munich.

The solution

The JCommerce team updated the ERP system to the Microsoft Dynamics NAV 2018 version, which has functionalities which support digital tax settlements. The implementation work undertaken by the JCommerce team was a big challenge since the Making Tax Digital program is new for both British entrepreneurs and software providers. This is why the additional work related to fixing errors which occurred during the adaptation of the system to customer requirements was also a significant challenge.

Simultaneously, JCommerce’s ERP specialists carried out work on a second database for the department in Germany, where the client’s headquarters is based. It was also important to adapt the system there to the amended legal regulations related to the new German electronic banking system (PSD II). Due to the amount of data, it was a lengthy and laborious process.

For JCommerce specialists, the main database was the biggest challenge, since in addition to the data to be transferred, there were also extra functionalities and modifications included in the NAV 2009 database which had to be adapted to the NAV 2018 version. This process required cooperation with several people at the same time in order to determine which mechanisms are available in the new database and which needed to be reconfigured.

In the case of work carried out for the German department, the key was cooperation with the accountant who tested the new solutions, and the person responsible for technical support (IT support, who had to provide a new server for the new database as well as server administration). After successful implementation, JCommerce provided the client with substantive support of ERP consultants.

The result

The Microsoft Dynamics NAV 2018 system installed by ERP specialists is much more intuitive and has numerous functionalities which have a positive effect on user convenience and comfort during daily work. The new version of the system works faster and more efficiently. The project allowed the client to achieve the goal of having new databases as well as a modern ERP system adapted to new legal regulations. The newly installed databases positively affect the operation of the system.

The upgrade of the system to the NAV 2018 version carried out by JCommerce’s specialists shows that a team of external consultants can carry out an update of the ERP system safely, without data loss – for every client, regardless of their location or that country’s legal regulations.

Business benefits:

• System modernization thanks to upgrading,
• Adaptation of the system to legal requirements,
• Addition of new functionalities available in Microsoft Dynamics NAV,
• Increased work efficiency due to better system performance.

About the Client

The client is a consulting company that supports enterprises and investors in the IT, telecommunication, media and technological (TMT) industries, providing analysis allowing the recipients to make successful business decisions within a reasonable period of time. The company has departments in the United Kingdom, Germany, United States, France, Italy, as well as in Poland.