Project in “Dojus” group of companies: version update, and implementation of the system carried out in the subsidiary in Latvia

Initial situation

“Dojus agro” is engaged in trading of agricultural machinery (tractors, harvesters, sowing machines, etc.) and its maintenance. The company’s business is developed not only in Lithuania but also in Belarus, Kaliningrad and Latvia. The company has established several sales and service centres in Lithuania (near Kaunas, Šiauliai, and Vilnius), and operates a mobile repair service. The company represents the world-famous manufacturers of agricultural machinery and its spare parts: John Deere, KUHN, MANITOU, SIMBA, and etc.
Before starting the project, the company had already implemented Microsoft Dynamics AX System v.3.0. However, needs for improvement and installation of new procedures in the business procedure system grow with the expanding business. Since the current version began to dissatisfy the company's needs, it was decided to move to a new MS Dynamics AX 2009 version. Since business in Latvia had been acquired during the decision-making, there emerged a need to implement the system in “„Dojus“” Latvia, which made sense of performing it into the new version of the system.

What is done?

Two parallel projects were carried out: transition to a new version of the system, and implementation of the system in „Dojus“ Latvia.

1. Transition to a new version was carried out by storing the history of data

In such cases, transferring of the system changes to the new version, as well as data migration by database tools is carried out.  The system developer ensures measures for orderly migration from version to version, but in this case migration by jumping over one version of the system (AX v4.0) needed to be done.  Blue Solutions team has found solutions to accomplish this task by minimizing the cost of the project as much as possible:
Intermediary migration of the changes made to the company (only the data structures) into AX V4.0, and data migration was carried out.
Migration of all changes made to the company into AX2009 and data migration was carried out.
 
Such a method of transition to a new version has required a relatively small contribution of the company's employees to the project, because of all the migration work was performed by Blue Solutions team, which transferred a new version of the system along with data for testing. During transfer for testing, trainings for the company’s users were organized, which were aimed to explain the differences between the previous and new version.  After a short testing period, a decision was taken to carry out a working migration, which was done by the Blue Solutions' technical consultant in one day, while the next day the company's employees already worked in the new version of the system.
 

2. System implementation in „Dojus“ Latvia was carried out in the company by transferring all the business procedures realized in the system from the parent company, and by making the necessary modifications in relation to country-specific accounting requirements

The analysis of the country-specific needs showed that not all the needed functionalities are realized in the MS Dynamics AX LV location. Thus, Blue Solutions team has proposed to make some additional changes (modifications) according to the needs of „Dojus“ Latvia. The following have been made during the project implementation:
  • „Dojus agro” procedures were adapted for „Dojus“ Latvia, by preparing data in the local language.
  • Accounting procedures governed by the laws of the country.
  • Integration with the cash registers, according to the requirements of the country's Tax Authority.
  • Integration with the local bank’s e-system (note: Latvia, unlike Lithuania, does not have determined one electronic banking data interchange format).
  • Exporting VAT data to the country's Tax Authority system.
  • Inter-company trade procedures between „Dojus agro” and „Dojus“ Latvia, using a standard functionality of the Intercompany system, and by extending it according to the needs of the companies.

Benefits to the customer

  • The client is able now to exploit the benefits of MS Dynamics AX2009, designed for accounting of different countries in one system implementation.
  • Costs for adjustment works for functionalities designed for specificity of the two countries did not incur, which would have been necessary in the previously used version.
  • Installation of inter-company trade procedures in the system resulted in user labour decrease and control increase by introducing sales and purchasing documents, and by creating product cards.
  •  The client is able to view the balances of inventory of all the related companies (without external analytics tools), which speeds up decision-making and provides the basis for not increasing the inventory balances.
  • With a new version the Client is able to use in prospect other functionalities realized in this version without major investments (e.g. procurement applications, tenders, etc.).