Global ERP Financials: Money Makes the World Go Around
“Money Makes the World Go Around”, this was a song by Cabaret several years ago. There is still a lot of truth in the words today and financials are an important part of global ERP systems. If you are looking for ERP financials and you have a global business you have many requirements to fill.
- IFRS is International Financial Reporting Standards
- GAAP is generally accepted accounting principals
- DRS is for German accounting standard
- Statements of Standard Accounting Practice (SSAPs) are used in UK
- Brazilian Accounting Standards Committee (CPC) sets the rules in Brazil.
Global ERP financials need to conform to a wide variety of accounting standards for reporting in any country. No matter where the company is based or where the stock might be traded, some kind of ERP reporting is needed wherever a company does business.
Reporting is not the only essential capability of global ERP financials, currency is also a global concern. While the US dollar might be a common denominator, a business has to deal with Euros, yen, pesos, rands and other currencies every day. A product might be sold under one currency, the cash collected in a second, and the transaction eventually reported in still another. Can you ERP financials handle this? Can they report these transactions accurately and compliantly?
Local Problems, Global Solutions
A global business exists in at least two countries. They also exist in states, provinces, territories, cities, counties, school districts and many other political bodies. Every one of those political bodies can require reporting and tax collection in their own forms, on their own time and using their own definitions and standards. Global ERP financials must be able to manage them all flawlessly to keep in good standing as a global citizen.
Can an ERP system meet all these diverse needs? Probably not. At least, probably not all by itself; there are just too many possible needs to justify any one ERP trying to meet them all. Fortunately, we all live in global villages. In each of those villages, there are specialists who provide the tools for specialized reporting and taxpaying. Any of today’s global ERP systems can be the data base from which the tool can copy and rearrange the data to meet the local standard with no problem.
Today’s ERP financials should allow us to be as local or as global as we need to be.
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