Finance, Tax & Accounting
By Thomas Titsch, Director ERP
Western companies should be aware of Russian accounting aspects when implementing ERP. In the last, the Russian understanding of enterprise planning was accountant driven and to some extent this remains. In order to understand Russian aspects in ERP implementations, you need to look at the aspects of the accounting approach.
Where do the different approaches come from? At this point, it makes sense to look back in history for a moment. In the pre-computer era, the Russians invented the concept of account correspondence. That means that the accounting entries were made into chessboard arrangements like in the picture below.
By Oleg Galiulin, Senior SAP Expert and Yuriy Zarya, IT Project Manager
Choosing an ERP System
Currently, all international companies have to prepare their financial statements according to both International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP), and local reporting standards of the countries they work in.
In addition, the more their businesses grow, the more complex informational systems are needed. At present there are plenty of IT companies that are ready to provide self-engineered ERP solutions. The changing complexity of a company’s IT needs makes it difficult for a company to choose the ideal ERP system.
By Albina Safina, Senior SAP Expert
SAP software solutions help companies to improve the efficiency of enterprises in Russia and to respond operatively to changes in the requirements of legislation in Russia. SAP rapidly develops procedures and documents required under the new regulations. The country version of SAP for Russia provides standard statutory print documents required for different business processes: sales, receipt and return, transportation and movements, and inventory.
Revised and Corrected VAT-invoices
In accordance with the government Decree №1137 from November 26, 2011, SAP has rapidly developed print documents for revised and corrected VAT invoices, and procedures for their registration in the system. Newly created VAT invoices are automatically reflected in the purchase/sale ledgers and in the journals of received and issued VAT invoices. Continue reading…
By Helge Masannek
In March 2014, the EU and the United States introduced sanctions against certain Russian and Ukrainian persons as a reaction toward Russia’s role in the Crimea crisis. European “Regulations concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine” included economic sanctions, asset freezes and travel bans and have been implemented on March 5 (2014/119/CFSP), March 17 (2014/145/CFSP), May 12 (2014/265/CFSP) and July 12 (2014/455/ CFSP) as well as July 30 (2014/507/CFSP). As of July 31, there were 123 individuals and legal entities on the sanctions list. Continue reading…
1. I’m working with a Russian business partner who is a member of the Customs Union and they are asking me to sign extra documents. Why?
From the perspective of your Russian partner, the tax code requires that completed works and services be evidenced by signed “acts” as these are the primary documents used to record revenue and expense. Therefore, at different stages of your work, you may be asked to sign these documents simply to satisfy the requirements of the Russian tax code.
2. I’ve sold services to our Russian business partner and now I’m being asked to provide a copy of my company tax registration document and it should be apostilled. Why?
Under Russian legislation, in the absence of a double taxation avoidance treaty, Russian-sourced income is taxed at the source which means your Russian partner should withhold taxes from your payment. However, to enjoy the benefits of the tax treaty, the Russian tax office requires that you demonstrate your eligibility by providing a copy of your tax registration certificate to your client. The apostille is simply a protocol that countries follow to recognize the legitimacy of documents between different countries. Continue reading…
By Bettina Wisthaler
While for imports between non-related companies, the invoice is usually sufficient as the main source for the calculation of the customs value. But for imports between affiliated companies, customs require additional confirmation of the value of goods. This is due to the fact that in the past, parent companies often tried to support their subsidiaries by invoicing lower values in order to save on customs duties and import VAT.
Nowadays, affiliation needs to be indicated even in the declaration of the customs value which is part of the customs declaration of goods. Additional confirmation should be provided in form of a price list stamped by the Chamber of Commerce of the exporter’s country, the export declaration and the official order confirmation. The situation becomes more complicated when the exporting company is not selling only to its subsidiary but also to other distributors in the Customs Union. Continue reading…
By Paul Sprague
Very often, cross-border transactions present obstacles for foreign companies due to cumbersome legislation, a lack of clarity on what should be done and how to account for the transaction in the accounting system. The following is some practical advice on how to navigate VAT transactions in the Customs Union. Continue reading…
I don’t see other companies using EDI so why should I?
Because EDI is a common back-office function, it is often not visible to the end-user but its usage is felt everywhere. Also, while EDI is rather new in Russia, companies are still learning about the possibility and many are not aware of the capabilities of EDI and that it can be implemented in most any organization. Soon, like in the West, EDI will become commonplace in most companies. Continue reading…
By Alexey Kozlov and Dmitry Slinkov
Following the global trend of digitalization, the Russian Federation enacted legislation that allows companies to carry out an electronic exchange of legally valid documents, such VAT invoices, goods acceptance protocols and service acceptance protocols. The banking industry has been a pioneer and key driver in the electronic document interchange, aiming to reduce their operating costs by switching to digital documents and transactions.
Successful experience of the banking industry has prompted the establishment of a regulatory framework and an e-government which is currently expanding the range of its electronic services. It has also become possible to simplify the document exchange process between organizations and government agencies and between organizations themselves. Continue reading…
By Ulf Schneider
With the introduction of electronic document interchange (EDI) gaining momentum, there are a number of ‘best practices’ in the implementation process that can be shared. Such ‘best practices’ may prove to be helpful to both first-time implementers as well as to the more experienced ones.
To be a success, it is paramount that there is executive sponsorship or management buy-in during the introduction of EDI. This implies that a key decision-maker in the organization has a deep understanding of the benefits that EDI implementation will bring and is capable of effectively sharing and promoting such understanding. Furthermore, this person needs to make sure that appropriate resources are secured and made available for the implementation as well as to create an environment for a successful implementation. Continue reading…