JD Edwards in Russia – Frequently Asked Questions (FAQ)

Introduction

The topics discussed in this article were collected by the Kertios Consulting ERP team during the implementation, deployment and support of the JD Edwards system in Russia. The questions come from our existing and potential clients. We always try to give the most objective answers based on our experience and deep understanding of the Russian JD Edwards market. Our team is always open to hear about your opinion or experience on topics related to the JD Edwards system.

How long has JD Edwards been present on the Russian ERP systems market?

JD Edwards has been in the global information systems market for over 40 years. In Russia, the system first became popular in the early 2000s and is actively used in various sectors of the economy to this day.

The first companies in Russia to implement the JD Edwards system in the early 2000s were GUM Trading House, the oldest shopping mall in Russia, and Caterpillar Tosno, a manufacturer of construction and mining equipment. To this day, these companies use the JD Edwards ERP system to manage their business processes.

Since 2005, the ERP system JD Edwards belongs to Oracle, which has been carrying out its continuous development and updates in many countries, including Russia. More information is available on the company’s official website on the page JD Edwards EnterpriseOne.

What size companies is JD Edwards suitable for?

JD Edwards is ideal for medium to large sized companies. The ERP system is especially effective for companies with a developed branch network and international corporations because JD Edwards allows you to scale your enterprise solution to other departments. This approach significantly reduces the project budget compared to a new system implementation.

To estimate the budget for the implementation of an ERP system, various methods are used, one of which is based on the principle of determining the project budget as 10% of the company’s revenue. Focusing on this amount, it is possible to move on to the next step – estimating the costs of implementing the ERP system.

One of the most popular methods used in calculating the costs of implementing an ERP system is the Total Cost of Ownership (TCO) method. The essence of this method is to calculate the maximum total cost of all costs for an ERP system that will arise during the entire period of its operation. Costs are divided into fixed and recurring costs. Fixed costs are carried out at the stage of system implementation, as a rule, once at the beginning. These include: the cost of developing and implementing a project, initial software purchases, hardware purchases, and outsourcing. Ongoing costs — the costs of keeping the system running — are required all the time while the system is running. These include: updating and upgrading the system, system administration, application development and additional settings, user training.  Having information about the budget that can be allocated for implementation, and information about the fixed costs based on TCO, the business owner can make an informed decision about the company’s readiness to launch an ERP system implementation project.

Kertios Consulting provides a full package of services for assessing and planning a future project for scaling or implementing a JD Edwards system. More information is available on the website under the section JDE Roll-out pre-project.

What industries is JD Edwards designed for?

JD Edwards has more than 80 modules that allow you to manage the business processes of a company in any industry. Historically, the system has a strong position in the market for solutions for areas such as manufacturing, distribution and retail, real estate, and service delivery.

For the manufacturing industry, the system allows you to manage the complete production cycle, from maintaining a catalog of manufactured goods and specifications, forecasting future demand, calculating the need for components and resources, issuing purchase and production orders, and ending with the sale of finished products to the end customer, reflecting the entire cycle of operations in financial block of the system. In this case, it is possible to take into account both the standard and the actual cost of the finished product, which is controlled by the system settings.

For the distribution and retail industry, JD Edwards is fully equipped with the functional and technical requirements to effectively customize the company’s business processes. You will be able to: integrate the system to receive orders from customers and automatically place orders to suppliers; use JD Edwards power to calculate pricing using discount and bonus programs; manage the warehouse, taking into account the system recommendations for the distribution of goods and the formation of a batch for shipment. At the same time, the processes of import and export operations are supported thanks to the customs management module.

JD Edwards provides comprehensive property and rental management capabilities throughout the asset lifecycle. You will be able to carry out: planning, search, selection of objects; maintain a unified register of real estate and lease agreements; automatically draw up invoices and settle accounts with counterparties; generate reports; predict costs and benefits. At the same time, the real estate management module is fully integrated with the financial block of the system and the service management module.

For an expanded list of industries in which the JD Edwards system is used, please visit the JD Edwards System Implementation section JDE Implementation.

How are JD Edwards updates conducted?

Oracle is continuously developing and updating the JD Edwards system in Russia. Functional service packs are released two to three times a year. They contain a description of all changes and their impact on the system. The client independently decides to install the package. Once a year, a comprehensive update package is released, which includes all the changes that were relevant at the date of its release.

In June 2021, Oracle announced the release of the JD Edwards EnterpriseOne Tools Release 9.2.5.4 functional package. It contains a set of improvements and fixes in the field of digital business transformation, user interaction with the system, system automation, security, and platforms, continually certified by JD Edwards, that offer the choice and control over the underlying computing architecture on which you run your EnterpriseOne system. The next all-in-one update, which will contain all previously released feature packs, is scheduled for release in November 2021.

It is important to note that as of the end of April 2021, the roadmap published by Oracle includes plans to develop and support the JD Edwards system until at least 2031. Information is available on the official website of Oracle – Support Announcement 2031.

Does JD Edwards take into account the requirements of Russian accounting and taxation standards?

The JD Edwards system in the basic delivery option has a number of primary documents, applications and mechanisms that are responsible for organizing accounting and tax accounting in accordance with Russian requirements. Examples of such functionality: invoice, waybill (TORG-12), mechanisms for working with the purchase journal and the sales journal, etc. However, the list of primary documents is limited and, as a rule, does not fully cover the needs of a specific customer. Furthermore, the format of the documents do not always meets the requirements of legislation and business practice adopted in Russia.

Kertios Consulting provides a Russian localization package for clients who want to use JD Edwards software in Russia, complying with all the requirements of Russian legislation and the rules of accounting and taxation. The Russian localization package contains updated forms of primary documents in accordance with the latest changes in legislation, as well as interactive applications for conducting specific Russian transactions, such as VAT deductions and corrections to the Purchase Journal / Sales Joural.

Kertios Consulting’s offer includes: a package of primary documents for sales (TORG-12, TTN, TN, invoice, prepayment invoice, act of performed services, corrective invoice); reconciliation of settlements with suppliers and customers; integration with the client bank; accounting for prepayments from clients in foreign currency or standard unit; package of primary documents for the warehouse (TORG-13, M-11, TTN, Russian inventory count); management of mutual settlements with customs; accounting of fixed assets; separate VAT accounting; VAT declaration; accounting entries at the end of the month (RAS); combined accounting under RAS and IFRS / GAAP standards.

For more information on the offer of Kertios Consulting and a detailed description of the Russian localization package, please visit the website in the Russian Localization section.

Are there examples of successful implementation and application of JD Edwards in Russia?

Today in Russia many companies have a successful long-term experience of working with the JD Edwards system. In particular, Kertios Consulting has more than 10 JD Edwards implementation, deployment, and support projects completed in Russia in its portfolio.

Among the customers those that conduct their business in the field of production and distribution prevail. These projects typically involve automating business processes to manage the supply chain, production, sales, warehouses, as well as finance and accounting, where companies face the most difficulties of keeping records in accordance with local accounting and tax requirements. The localization package allows you to take into account the Russian specifics, which is confirmed by more than one successfully implemented project.

Many projects are initiated with the aim of scaling the corporate JD Edwards solution to the divisions of international companies operating in Russia. But, in addition to scaling projects, there are examples of new implementation of the JD Edwards system. Among these customers are companies from the banking sector, trade, pharmaceuticals, services and other industries. They have successfully automated their JD Edwards business processes for property management, service delivery, repairs, counterparty management, asset management and reporting.

For more information about Kertios Consulting and the implemented projects related to the JD Edwards system, follow the link – JD Edwards from Kertios.

How does JD Edwards comply with the Russian law on personal data protection?

Throughout the territory of the Russian Federation, there is a law FZ-152 on personal data, which regulates all issues related to the processing (receipt, storage, transfer, deletion) of personal data of individuals by legal entities. Among other conditions imposed by the law on enterprises, in relation to personal data, there is a requirement to collect and store (if necessary) personal data of individuals only on the territory of the Russian Federation.

This requirement imposes restrictions on the architecture of information systems, since the servers used for the primary collection and storage of personal data cannot be located abroad. The JD Edwards system is positioned by Oracle as a local application, which makes it possible to comply with legal requirements if the system and data storage are located on the territory of an enterprise located in Russia.

The situation is more complicated with foreign companies that scale the JD Edwards system to their divisions in Russia, since access to the ERP and database for entering and storing personal data is carried out remotely. Kertios Consulting offers a solution to this issue by using a hybrid architecture, in which the initial collection and storage of personal data is carried out in Russia using a server dedicated for this purpose. The subsequent transfer of personal data to the central storage is not limited by law. When collecting data, it is recommended to obtain consent from the owners of the personal data for their cross-border transfer. This approach allows you to fully comply with the requirements of the legislation of the Russian Federation.

0 48
Frederic Glenat