Even though the most pressing topical issue in recent months concerns the Covid-19 emergency, the business system must necessarily pay attention to BrexitBrexit remains of crucial importance to thousands of companies, despite being a quieter issue compared to the months after the release of the referendum which established Uk’s exit from Europe.Today the solution seems to be still farbut time is running out. The deadline of this transitional period is expected on 31 December 2020..
The election of Joe Biden as president of the United States and the imminent exit of the scene of Donald Trump increase the likelihood of a more “soft Brexit”,but the chances of an agreement negotiation are still few. Anyway, it is established that on 1 January 2021 the United Kingdom will become anon European country.his new scenario will lead to important changes in trade rules,supply chain,supply processes and finance..
The Brexit will require important changes to you ERP Systemn all cases: whether your company is already prepared in terms of extra European commercial affairs or not.
Among the main necessary adjustments it is included:
- customers/suppliers lists belonging to UK;
- incoming interchange flows management: customers’ fiscal classification, open orders update, establishment of incomes;
- outcoming interchange flows management: invoices recording as Extra-EU;
- VAT registers update.
1 Scenery: Hard Brexit
If the United Kingdom government and the European Union won’t reach a negotiated agreement for every company that trades with the United Kingdom before Decembre the 31, the the impact on the ERP United Kingdombusiness system will be limited, but only if your company already has business activities out of the European Union. In this case, indeed, the management of trade will be part of the World Trade Organisation regulations,with the United Kingdomas “third country”, so no more EU. All these elements must be regulated and adjusted on your ERP.
2 Scenery: Soft Brexit
Every company belonging to European Union and trading with the United Kingdom still hopes for an agreement on Brexit. However, whatever agreements will be there, the United Kingdom will leave the European Union: the goods thus won’t be moving that easily between the two areas as in the pre Brexit age. In this case, the impact on your ERP System will be more significant. Substantial changes and configurations will be necessary. Nevertheless, there is good news: if your company is using SAPthe world’s most advanced management, you have at your disposal an integrated whole of tools and features, which usually are not adequately used in the trade field. Brexit is in this sense an opportunity to further investigate unexpected solutions, with big advantages on processes.
Do you need help? Contact Software Business!
Despite the uncertainty on the regulation system that will enter into force after Brexit, the impact of the exit of the United Kingdom from the European Union will be imposing. Software BusinessSoftware Business, SAP Open Ecosystem partner, supports your company in the process of adjustment and configuration of SAP related to the new legislation. Fill in the form to be contacted by one of our consultants.