06 Jul How do you choose an ERP solution in Romania?
Although a defined ERP is based on at least one method or management technique (such as MRP with JIT, order tracking, Projects or Budget etc.) in Romania you will not get rid of accounting – accounting is the main method of management.
Romanian accounting is 100% similar to the accounting applicable in France with the difference that the French one have more than 100 analytical spending accounts that we do not have. French accounting is totally different from Anglo-Saxon Accounting (GAAP).
French accounting puts the state first and company/manager and shareholder second, while the Anglo-Saxon accounting (GAAP) has firm + shareholders and their needs first and then state and taxation.
The main management tool / technique in Romanian companies is the technique / method of tracking the account by balances and the turnover component as opposed to the Anglo-Saxon accounting where the balance is tracked at that time.
The GAAP (Anglo-Saxon) Accounting Balance is a balancing of 2 column balances (initial balance – final balance) while the Franco-Romanian balance is a balance that has at least 8 columns where very important are the DEBIT / CREDIT monthly columns and Total / SUM (cumulative run). In GAAP Anglo-Saxon Accounting, there is no DEBIT = CREDIT account functioning independently in the mixed N_DEBIT = X_Credit account and can not be matched. Having no mating on the accounting note, then the General Journal Register (which had to be deposited a few years ago at District State Financial Department) can not be removed because 401 does not know who worked with, and 4111 does not find the information when looking for 707,704,701 accounts etc.
Franco-Romanian accounting is an accounting of the state. The manager is required to keep the financial and fiscal accounts with hundreds of expense and revenue accounts (green card) for the state, and then to post calculate these revenues and expenses to the class 9 accounts, the accounting records, in order to see the calculation and cost carriers.
Some other elements that differentiate Franco-Roman accounting from Anglo-Saxon one:
The stock price in Romania is 100% FIFO with specific identification per lot / price with the formation of the complete supply price. Unstable economy + inflation + exchange rate + massive imports forced the existence of this method.
The stock price in the US is 100% standard (the one we only use at finished product) with periodic updates (monthly / yearly) due to stable economy with low fluctuations. Price differences go directly to the result of the exercise (equivalent to 121) through expense / income because they are allowed to do so (in our accounting is not allowed) price differences in Romania always come in the balance of the class 3 stock: 378, 348 etc. .. and then download only when the product was consumed in production or sold.
The Managerial Tool in Anglo-Saxon Accounting is the BUDGET and the PROJECT unlike in Romania where the main driving force is the ACCOUNT and then the other instruments.
See what you should know before buying an ERP in Romania, especially if you manage large quantities of stocks and you have Production.
Bogdan Ionescu, Consultant, SW Solution/Solutions Deployment
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