The Dynamics GP Blog

One of the great things about GP 2010 is the simple “no coding” of the user interface. There are several methods that can be used, but by far the quickest and simplest is to use Modifier tool. For example, this is how the default empoyee screen looks when you use the default setups for GP Payroll:

Now with a little bit of work in the built in GP modifier tool, we can rename/hide and adjust any feild names that appear in the form: Take a look at this simple localized customization for Pakistani Payroll Customers:

Notice, how simple cosmetic changes can bring a much more localized personel experience to your user.

As a policy, Axone Business Solutions, has a number of localized screen modifications which are offered to all our customers on a “no charge basis”.

One of the great benefits of GP 10 is the flexibility that you can build into the business process design. You can have quite literally “no controls” or lots of “checks and balances”. It’s really up to your business policy and vision of how you want to run your organization. Lets look at this diagram.

The concept behind this simple flow chart is to illustrate the checks and balances that you could design into your Purchase Order and Cheque Signing processes.

 The green boxes represent GP functions and transactional entry screens. The red boxes represent “approval stages” in the process and the blue boxes represent some type of physical activity. Taking this further, the diagram demonstrates that, if desired, the cheque signing authority can literally sign Vendor related payment cheques blindly as no cheques can be presented without first going through each of the routines and tasks. The key features of GP 10 that can bring this all together are Workflows, Security, Roles and Integration. Let’s look at each of these features to see how it impacts this “PO to Cheque” process.

• Within GP,Workflows are the rules for an approval system. (Read more on the subject here)
• Security set up enforces who can do what on various documents and transactions. GP has a very sophisticated security model which can be tailored for groups of users or right down to an individual user. 
• Roles, introduced in GP 9.0, are a set of pre-defined configurable, screens, reports, tasks, business rules etc, that can be linked to users of the ERP application. GP contains 32 roles out of the box. EG. CFO, AP Clerk,Warehouse Manager, Bookkeeper etc.
• Integration. One of the key advantages that define an ERP is “Integration among different functional areas to ensure proper communication, productivity and efficiency and preserving data integrity in one shared database”

So, signing cheques blindly, maybe not for you. However, can GP support you if you wanted to yes it can.

Most small businesses in Pakistan want a simple package designed for a small business. Sometimes they end up using QuickBooks. And why not. It’s quick, easy, and affordable to most local businesses that are just starting out and have limited financial resources. As those companies grow it makes sense for them to “squeez” as much functionality as possible out of their current Quickbooks, in the hope that their Quickbooks investment, would not be “wasted”.
One side effect of this tatic, is not comming to the realization that a “Beginners Software” like Quickbooks can only take you as far, as the functions that are built in to it. There is a massive gap between even Quickbook Enterprise and Microsoft Dynamics GP.

Take for example the recent findings from the 3rd party company The Accounting Library where they found that Microsoft Dynamics GP 10.0 out of the box includes a great deal more functionality than QuickBooks Enterprise 9.0.

Considering the functionality gaps shown to the left, the fast ROI customers experience when moving to Microsoft Dynamics GP, along with gaining powerful out of the box interoperability with the Microsoft Office products they use every day, it is no surprise that customers continue to make the Smart Move to Microsoft Dynamics GP!

You can use Cash Flow Management to predefine an opening balance for a forecast, based on a single cash management transaction or a specific General Ledger account balance. You also can base a forecast on one or more checkbook balances with or without work / adjust transactions, such as deposits, payments, and reconciliation adjustments that are not part of the checkbook balance.

Cash Flow Management is installed automatically when you install Microsoft Dynamics™ GP.

You also can use Cash Flow Management to complete the following tasks:

Create an unlimited number of cash flow forecast definitions.

• Forecast cash flows in different ways
• Create scenarios without actually recording transactions
• Summarize daily inflows and outflows of cash in the calendar window
• View the summary of any given day’s cash inflow and outflow
• Obtain weekly—detailed or summary—and monthly calendar reports

Cash flow forecasts and transactions

You can create and keep an unlimited number of cash flow forecast definitions. The cash flow forecasts that you define will be displayed in the Cash Flow Calendar and the Cash Flow Explorer. “What if” transactions (external inflow and outflow transactions that are not actually entered in Microsoft Dynamics GP) let you see what effect actual transactions will have on your cash flow.

Entering “what if?” cash flow transactions

Cash Flow Management allows you to enter “what if” transactions (external inflow and outflow transactions that are not actually entered in Microsoft Dynamics GP) to see what effect these transactions will have on your cash flow.

Using the Cash Flow Calendar window

The Cash Flow Calendar displays inflows and outflows based on the default forecast you set up in the Cash Flow Forecast window. You can use the Cash Flow Calendar to scroll to different months, or to open to a specific day and view your transactions.
In the Cash Flow Calendar, outflows appear in red, inflows appear in blue, and the balance to date is shown in black.

You may be asking yourself how can I think about spending money on a new ERP system in this economy?

The truth is, it‘s the perfect time to replace your inefficient, out-dated local software system with a new one that provides easier and better access to the critical information that will help your business jump ahead of the competition as the economy moves out of the current recession. Companies often upgrade to new software when they are busiest and feel the pain of limitations of their older system the most – but that is when they have the least time and resources available to make the change and learn how to take advantage of the new capabilities.

If you’re struggling with an ineffective system yet are reluctant to make a change because you think it will cost too much and/or it will be too disruptive, think again.  Now, when business is less hectic, is the time to prepare for the coming recovery. And it may be a lot more affordable than you think.

We see a lot of companies investing in new technology now. If you’re a growing business looking to move from other systems such as Sage MAS 90 or 200, read more on how other companies have benefited from investing in a more advanced ERP system such as Microsoft Dynamics GP.

What is a Workflow?

There are a number of definitions. Wikipedia has a fairly comprehensive description of the subject, however for busy Business Owners such as yourself, I’ve narrowed it down to what “Workflow” means within the Dynamics GP system.

As far as GP is concerend there are 2 definitions:

1. Workflow is a System - Workflow is a system that you install with Dynamics GP. It provides that functionality that you need to create indivual workflows and or approval processes.
2. Workflow is an Approval System -  It’s an approval process for a document or a ‘batch’. Bascially, it is the ‘rules’ for how a document or batch has to ‘flow” through the system and be approved by someone and under what conditions it can be approved.

Lets take this example;

In this Purchase Order Approval Process, the workflow shows who must approve purchase orders and under what conditions.

Ali Submits a Purchase Order for Rs.2,000. In this sceanario, the Purchase Order must be approved by Abbas. If the Purchase Order was for Rs.8,000 the it would need approval from both Abbas and Feroze.
Benefits of Using Workflows

There are many benefits to using Workflows in an organization. Here are some of the Key benefits.

Consistency
The Workflow system enables you to define the approval process for specific documents and batches, such as purchase order documents and Receivables Management batches. By using the Workflow system, you ensure that documents and batches are reviewed and approved in a consistent and efficient manner.

Automatic Notification
Users can be automatically notified when a document or batch is assigned to them for approval, or when a document or batch they submitted is approved. Users can be notified via desktop alerts or e-mail alerts.

Access through Office SharePoint Server and Outlook
Users don’t have to log on to Microsoft Dynamics GP to approve documents and batches. Users can approve documents and batches by accessing the Workflow web site, which is built on Microsoft Office SharePoint Server 2007, or by responding to e-mail messages in Microsoft Office Outlook 2007.

Reports
There are several Workflow reports you can generate. These reports help you monitor the Workflow system and identify specific workflow steps or approvers who may be slowing down an approval process.

Mariano Gomez has just reveled some excellent insight into what Business Owners of the future will be expecting their technology investments to deliver.
If you use or are considering a Dynamics GP implementation, then this post is a must read.
Read his full post here

ERP Discrete vs. ERP Process

People often ask “what’s the difference between process and discrete ERP?” Here’s a rough overview of the difference.
A quick definition from APICS (The Association for Operations Management) describes discrete manufacturing as “the production of distinct items such as automobiles, appliances, or computers,” whereas process manufacturing covers “production that adds value by mixing, separating, forming, and/or performing chemical reactions. It may be done in either batch or continuous mode.” Now let’s look at a few examples.

Think about what your company manufactures. Does it require mixing chemicals? If so, you may need an ERP system that does things like calculate ingredient quantities. If your industry produces the type of product that doesn’t lend itself to being disassembled into its individual components, it’s likely you need to consider a process ERP system. On the other hand, if your company assembles products from many component parts, you’ll require discrete manufacturing functionality.

You Cannot Put the Juice Back into the Orange
In his article Process Manufacturing Software: A Primer, IT consultant Joe Strub explains the difference with this example:

Once you make a can of soda, you cannot return it back to its basic components such as carbonated water, citric acid, potassium benzoate, aspartame, and other ingredients. You cannot put the juice back into the orange. A car or computer, on the other hand, can be disassembled and the parts, to a large extent, can be returned to stock.
In addition, process manufacturing is scalable. If a formula calls for 1,000 pounds of cake flour, but you only have 500 pounds, you can still bake cakes—just not as many. Conversely, in discrete manufacturing, one missing part means waiting for it before the finished assembly unit can start rolling off the production line.

At Axone we model functionality for manufacturing in discrete or process industries under the following categories.

If you’re talking about requirements involving bills of material (BOMs) that list the component parts for assembly, you’d find those covered through the discrete manufacturing categories. But if you’re talking about functionality for formulas, recipes, or ingredients, those would tend toward the process manufacturing categories.

So, be on your toes when you are buying an ERP manufacturing system from a vendor. Make sure that what your buying can support your manufacturing processes. There are quite a few vendors who will generally “tout” GP to a ERP Processes Customer, and that customer discovers well into the implementation that their unique process industry needs cannot be met by GP.

Lets be clear on this GP, can only effectively support DISCREET Manufactures. It does NOT have the functionality to support Process Based Industries and Companies. So, Caveat Emptor (Let the Buyer Beware).

Boom Boom, Bust! So in the end, especially right now, it’s all down to 2 facts of life.

1. How much is it going to cost me to get GP up and running in my business?
2. How much cash am i going to get back from this investment?

So let’s start with the first one. Well like all good consultants I can only answer that with a industry standard, “It depends….”. That may not satisfy you, but really if i could tell you that without even meeting you and understanding your requirements then either I’m a magician or I’d be bending the truth. However, what I can tell you is that GP ranks right at the top in terms of 2 important measuring criteria for a new business management system.

• The payback is the quickest
• 50-60% more functionality than any other Small Business Management System

So whilst, I can’t tell you just yet what it will cost, I can tell you that GP offers the best value for money of any business management system.

Now, onto the second fact, namely “What’s in it for me?”.
GP can positively put cash back in your pocket. How?  By either or a combination of the following:

• Help you sell more…..so many times this is actually overlooked in the Pakistani Market, where buyers of GP tend to focus more upon the financial management controls that GP can bring to an organization, rather than also looking at how GP, can actually increase sales.

• Clean up the inefficiencies in the business. Let’s be honest, we all have them, hundreds of nonsensical processes and procedures that just stop us from serving our customers to a decent level of satisfaction. GP can streamline and cut out all the non productive (I.E non value addition) practices that we all face.

• Get a grip on your stock. If you’re in a business with Inventory or Manufacturing, stock control is the biggest weakness that you can have. It’s not just about making sure that theft does not occur or that you have a good ‘Gate Pass” system. As a business owner it’s about the ROI of your investment in stock. For years, I’ve been espousing to everyone who’s got inventory problems, to stop thinking on inventory as an asset but rather as an expense. Yes, I know the CFO won’t agree, but start thinking of inventory as something you need to satisfy a customer, and then use your GP system that you have only enough (Inventory) to satisfy your customer.

Now, let’s look at some sort of numbers that the above can translate into. Let’s take an average business in Pakistan and breakdown a few typical P&L and Balance sheet items.
(This is a fictions set of assumptions, hopefully it will serve its purpose, which is purely for illustrations)

(PKR.000)  All figures assumed at per annum
Sales: 180,000
Gross Profit: 81,000
Op Exp: 72,000
Net Profit: 9,000

Now let’s assume that by utilizing GP fully with the sort of examples that I mentioned earlier you were able to make some modest gains.

Sales increase by 2%
GP increase by 1%
Op Exp decrease by 3%

The outcome of this would result in a Net profit of Rs.11,970 which is a 33% increase in profitability!

More gains are possible if you look at a typical scenario with inventory.
Let’s assume that for the above Sales at Cost, with a stock turn of about 5 you would need Rs. 19,800 of inventory.
Let’s also assume that you were able to, by using GP’s excellent Inventory Module, increase your stock turn by 1 to 6 times a year. Now let’s again assume that you increased your sales by 2%. The actual stock required with even higher sales is now Rs.16, 965.

That equates to just under 3 million Rupees of working capital for stock reduced for this fictions company.

So getting right back to the basic reason for this post. Can investing in a business management system like GP actually put cash back into my business? Well based on the above  assumptions the answer has to be, absolutely yes it can! In fact, investing right now in your own business with a software system that can truly benefit your cash flow seems to be the only attractive investment opportunity you can make in Pakistan these days.