The corporate tax in UAE will be effective from 1st June 2023 and the Ministry of Finance will soon release the official draft on the new tax law. Is your company ready for the new major change in UAE tax compliance? 

There are various questions yet to be clarified with regards to the compliance, tax payments and administration. However, businesses should start planning and preparing for the new regulation from NOW. 

Recommended steps to follow: 

Start NOW: The best time to start planning and preparation is NOW. 

Upskill your employees: As this is the first time a direct tax is introduced in UAE, employees should learn various principles and acts to comply with the new regulation. 

Internal controls/Audit: Have internal controls set to track all the transactions as per the compliance required. 

Documentation: Store all the business related documents and make it accessible at any time as it will become mandatory to produce documented proofs while auditing. 

Period end processes: To be compliant with the filing of returns on time, the books period-end closing books should be done on time. Have the right processes in place to record all transactions on time for early closing of books.

Cash Flow management: The primary concern of any business is management of cash flow. With the new addition of corporate tax, it directly impacts the cash flow and hence the cash flow should be carefully managed. 

Business Software: This is one of the most important steps as having a right ERP system will make the whole process of compliance and return filing easier. FactsERP is FTA accredited and locally developed software which accommodates the timely statutory updates from government authorities. Also both the technical and support team of FactsERP is based in the UAE. 

Multi Location & Currencies: Companies having branches in multiple locations and dealing in multiple currencies should update the currencies as per the filing requirements set by authorities in local currency. FactsERP supports multi-location, multi-currency, multi-companies and multi-departments. 

Inter-company transactions: With the impact of taxation on inter-company transactions, the system should be able to identify the type of transactions and support reconciliation. This is where software like FactsERP helps companies with Corporate Tax ready systems and processes.

To know more information or for a Quick DEMO of Facts ERP, call now on 052 640 3949.

Our client is into trading and distribution business with a high volume of transactions and invoices. They supply stock to retailers and the transactions are frequent. The salespeople are responsible for collecting payments for the invoices issued to retailers. However the payment is done by retailers partly during the salespeople visits. 

The challenge faced by the company and salespeople is to allocate the payments received against the invoices issued to retailers. 

FactsERP was implemented and provided a mobile app extension for sales people. Using this app, the salespeople can record the payments received and select the list of open invoices against which the payment is to be allocated. This process helped in tracking the outstanding invoices which are partly paid and close the invoices fully paid. Also, salesmen can do the ageing analysis of receivables and prioritize the collections.

Why is Job Costing Important? 

If you are engaged in the business of construction/contracting or project management, then tracking the costing at job or project level is crucial. The management would be interested in knowing the profitability of projects, reducing costs at project level, allocation of budget and variance report generation. 

Using Facts ERP with job costing, you can easily capture all the details at the project level. As the job costing is an internal process, it comes with greater flexibility in calculation and allocation of costs. If you are a contracting company, then job costing is a must have tool to track the profitability of jobs/projects. 

Features and Benefits of Job Costing in Facts ERP: 

Budgeting: You can set budgets at each activity level for the job or project. With easy import facility from Excel, all the activities can be imported for a particular project. All the costs and revenue can be allocated for each transaction which is linked to a particular activity. 

Periodic variance analysis can be done by comparing the budgeted and actual figures. This will help in better tracking and control of costs. 

Reduce duplication of work: All the costs you enter are allocated to jobs while doing the transactions. This will help in avoiding manual cost allocation and thus reducing the duplication of work. 

Store management: Usually the materials are stored in the warehouse or sometime at the job site before utilizing them for the job. The store management enables easy transfer of material from store to job site and vice versa.

TimeSheet Management: With the easy import facility of time sheets, both the attendance and cost can be tracked and allocated to respective jobs/projects. 

Subcontracting: All costs, purchase orders, payments and invoices related to subcontractors can be easily tracked and allocated to jobs/projects. Also, the budgeting can be done based on the initial quotations received from subcontractors which helps in better control of costs. 

Project Status updates: Regular notification and updates can be set regarding the status of the projects. These notifications will be received by the responsible engineer or project managers on their Dashboard or by email. 

WIP: Booking of revenue as per the progressive invoicing can be done using the WIP method in Facts ERP job costing module. Deducting of advance payment and reduction of retentions payment etc., can be automated without any manual calculation. 

Overhead Allocation: Although it is easy to allocate the costs of material or labor for a particular job or project. It is quite challenging to allocate the overhead costs as these are not directly related to any particular job. 

However, using a pre-defined basis of allocation, the overheads can be easily allocated to jobs. There are majorly three types of basis of overhead allocation for contracting companies as follows:

1. Number of labour hours allocated
2. Material Consumption
3. Value of project
4. Predefined percentages

Profitability analysis: All the revenue and costs are allocated to jobs at each transaction level. Also with the complete allocation of overheads, the actual profitability for each profit can be tracked easily. 

Performance Tracking: You can track the performance of manpower easily with job costing. This can be done by comparing the actual cost versus the budgeted cost of manpower. This can be used as a metric for evaluating the performance of respective project managers. 

For a free demo of Facts ERP with Job Costing, please get in touch on 052 640 3949.

Managing a Stock Enquiry

If you are in trading business then your staff should always have real-time information about the stock. Especially the person responsible for facing the customer should be aware of the product availability, pricing and location etc,. This becomes more challenging when there are multiple counters or sales people handling the stock enquiries. A Stock Enquiry Management feature in ERP is the right solution to overcome this challenge.

FactsERP comes with an easy to use and flexible solution for real-time stock enquiry management. Whether your staff are facing the customer in store or at customer’s location to book orders, our solution comes with real-time information to increase the sales conversion. The following are the benefits & features of Stock Enquiry Management in FactsERP. 

Benefits of FactsERP Stock Enquiry Management

• Product Quantity Status: You can track the quantities currently available in stock, quantities expected to arrive from PO, and quantities which are booked by customers. Based on this information, you can commit to customers on the expected date of availability. As a result, customers will be satisfied, leading to an increase in sales. 

• Product Locations: If you are storing your products in multiple locations, then easily track the availability of a product across the locations. If a customer wants to pick up the product from a particular location, you can quickly check if the item is available in that location. 

• Substitute Items: In certain categories of products, there are substitutes or alternatives or compatible products. In case a product requested by a customer is not available, your sales staff should be able to recommend the alternative products. This information can be quickly accessed with the substitute feature in FactsERP. This helps in cross improved selling and upselling of products. 

• Loss of Sale: Management should be aware and evaluate the sales they are losing due to non availability of products or high pricing. You can track the log to check the status of each enquiry, how much sale is lost and the reason for the loss of sale. This helps in taking corrective actions to avoid the possible loss in future. 

For a quick demo of FactsERP, call now on 052 640 3949.

Managing a Warehouse

Managing a warehouse is challenging especially if your company deals in multiple product lines or large inventory. If you are a trading company dealing with different products and inventory then it’s challenging to manage a warehouse. As a warehouse manager you are required to track the correct location of items, stock quantities and dispatch items on time. With the use of a warehouse management solution, it becomes easy to overcome the challenges mentioned above. 

When the stock arrives at the warehouse, it has to be placed in the right locations. It should be easier to find the bin or track locations while dispatching the stock. Moreover, the actual stock and the stock in the system should always match and be trackable in real-time. Without a proper warehouse management system, it’s quite difficult to manage inventory effectively. 

Warehouse Management Solution(WMS)

FactsWMS solution helps in effective management of complete warehouse. I have listed below the key benefits and advantages of FactsWMS.

Batch-wise Inventory Control: If you are dealing with products which are perishable and having expiry dates then batch-wise inventory is the perfect solution. Also, if you want to maintain your inventory with various other attributes such as pricing, then the inventory can be managed in batches. 

This helps in easy tracking of items relating to a particular batch. Also, when there is a return of goods then it’s easy to track with the batch number. FactsWMS comes with an industry standard process for easy management of batch-wise inventory.  

Serial Number Control (with Barcodes): A barcode based inventory system increase the efficiency of stock management. With enhanced functionality, all the items arriving at the warehouse can be scanned and placed at the respective locations. While dispatching the stock also, the items will be scanned which helps in easily tracking of the location of item at the time of dispatch. 

Increased Operational Efficiency: Having the FactsWMS will increase the efficiency of complete warehouse management. 

Improved Customer Service: When you receive an order from a customer, you can easily track how much stock is available and how much more to be purchased. Based on this information, you can commit with the customer on the delivery date. This helps in improved customer service leading to more sales. 

Real-Time Inventory Updates: As and when the stock arrives or dispatches from the warehouse, the quantities are updated in real-time. This helps in having accurate information of the stock availability.

To book a quick demo of FactsWMS get in touch with us or call on 052 640 3948.

Why is ERP required for Trading Companies?

A typical trading company buys products at the best price, stores them and sells them to customers to make a profit. It may look very simple if you read it but there are many things behind the scenes to run a successful trading business.

Usually, a trading company faces many challenges in the day to day operations. It has to manage the stock, deal with suppliers, and deliver to customers within deadline with competitive pricing. Buying at the best price, keeping the right stock levels, providing salespeople with the right information, and providing the best pricing to customers are some of the minimal requirements for a successful trading company. 

Benefits of ERP for Trading Companies

With so much competition in the market, having the right business software to manage the business is crucial. An ERP software gives power to the business to effectively manage various business functions from one application. 

Hence, I have listed below the benefits an ERP software brings for a Trading company. 

Inventory Management: You can manage your stock location wise, bin wise, or batch wise. Also, your employee will have real-time information about the availability for the stock and its location. 

Supplier Price Analysis: Compare the prices from multiple suppliers before placing a purchase order. This will help your business in increasing the profitability with the increase in profit or the sales volume due to the competitive price to customers. 

Complete supply chain management: You can manage the complete supply chain with an ERP system starting from the supplier to customers, all from one application. 

eMirsal: With the integration of eMirsal into the ERP system, it becomes easy if your business is dealing in exports and imports in Dubai.

Credit Limit Control: Monitor the customers who have availed more than their limits set and take necessary steps to control.

Approval Levels: Set multiple approval levels depending on the transaction type or value to have better control and without the need of sending emails or prints.

Stock based on Previous Sales: Easily create sales or product requirement projection based on the sales history.

ASN Integration: Plan your customer order deliveries effectively by tracking the upcoming shipments to be received using ASN integration.

Analyze Sales Performance: Easily measure the performance of salespeople by assigning targets, tracking their orders and monitoring the profitability of each salesperson. 

Bar Code/QR Code Integration: Enable barcodes for your products to easily track a products location or details while preparing orders. 

Expiry date wise tracking: You can also track the products with expiry dates. This will help in reducing the stock wastage, moving the products faster which are expiring soon or disposing off the products which are already expired. 

Category wise Pricing: Set pricing depending on the category of customers or salespeople. This will help in providing special pricing for certain customers who have been loyal to your business. 

Discount Levels and Schemes: Offer various schemes and discounts to your customers to increase the sales value. You can set easy automated rules depending on the order value or quantity. 

PDC Management: Manage all the PDC cheques which helps in easy tracking of the upcoming cheques. 

Cash Flow management: With the efficient management of receivables and payables, it helps in effective improvement of cash flow.

Advanced Analytics: Get advanced BI reports to check the performance at product level, salesperson level, category level etc.

Facts ERP has a custom built solution for Trading companies in UAE. Get in touch with us if you have any questions.

An ERP software will help by integrating all the business functions and enabling a smooth flow of business processes, and it will help in overcoming the challenges faced by Construction companies.