Brexit Issues and Microsoft Dynamics® NAV
Brexit and Microsoft Dynamics® NAV
Now that the dust is beginning to settle over the unexpected decision of the UK electorate to vote to leave the EU, thoughts may be beginning to turn to what the effects of that may mean in the future for your business in general and your ERP system in particular. This blog discusses some of these issues and how Microsoft Dynamics NAV can help you cope and respond to the many changes that may, or more likely will, be coming.
There are a number of blogs by other practitioners on this area and this one is worth a read.
There have already been big fluctuations in the value of the UK Pound against the Euro and other currencies which exposes any business that imports and/or exports to the risk of reduced profit margins or becoming uncompetitive. With Dynamics NAV you can easily change your currency rates as they change, keep track of your potential exposure to currency fluctuations and also accurately record realised gains and losses. More information is shown in this link from Microsoft’s Developer Network (MSDN).
VAT Rate Changes
The UK government has promised to change the rates of VAT on a number of categories of items, reducing the rates on some items and abolishing VAT on others. With NAV you can change your rates of VAT in minutes and using tools supplied by Microsoft or your NAV partner you can even backdate those changes. More information is shown in this link from MSDN.
Back to the Future?
If the Brexit negotiations with the UK’s EU partners were to go really badly, the UK could opt for “Brexit max” – a complete break with the EU. If it was to do so, it could opt for a completely different form of sales tax, abolishing VAT and either re-introducing purchase taxes or introducing sales taxes along the lines of those used in the USA. Although it’s not obvious, all the functionality to use sales taxes is included in all versions of NAV so it is fairly easy to turn one type i.e. VAT off and another on or even keep both.
In the event of Brexit max, anyone importing goods from the EU may well have to pay import duties and other taxes. NAV has flexible functionality which allows you add these costs the goods and services you import or export and if desired, pass these on to your customers. More information is shown in this link.
It’s been said that Brexit will reduce the amount of bureaucracy that businesses will have to contend with. I’ll believe it when I see it, it will just be different! NAV allows you to customise delivery notes, invoices and other paperwork as much as you need to, even to the point of having unique document layouts for some documents for each customer or supplier. More information is shown in this link from the Microsoft Dynamics Community website.
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I find their approach to our relationship very professional whilst being refreshingly realistic. We now consider them to be part of our teamTechnical Director, Bainbridge International