CRM Software

Companies using NetSuite’s (News - Alert) cloud-based software to do business in the UK will be automatically in compliance when the value-added tax (VAT) rate reverts to 17.5 percent on Jan. 1, providing they complete a simple one-click update from the NetSuite user portal.

The government reduced the VAT rate from 17.5 percent to 15 percent last year as part of its economic stimulus package – but this was only a temporary measure, and in his pre-budget report on Dec. 9, Chancellor of the Exchequer Alistair Darling announced the decision to return to 17.5 percent come Jan. 1. That’s not a lot of time for companies to come into compliance.

According to a press release, NetSuite has developed a SuiteBundle that allows customers to automatically update tax codes lists and items, as well as open sales and purchase orders that companies may have as of Dec. 31. Customers can apply the bundle at any time and the system will update itself automatically on Jan. 1.

 

More specifically, the SuiteBundle automatically updates the NetSuite Tax Engine inside NetSuite's financial/accounting software. Thus, companies using NetSuite’s cloud-based accounting applications won’t have to “lift a finger” in order to become compliant -- instead the update will occur overnight -- and their IT staffs will have been relieved of the arduous and nerve-wracking task of implementing a patch and hoping that it works.

'The change in the UK VAT rate presents a challenge to businesses to ensure compliance, especially during the busy Christmas period,' said Steve Sydes, managing director of EMEA for NetSuite, in the release. 'The NetSuite tax engine was designed to allow such changes to be made quickly and at the appropriate time. Thanks to the SuiteCloud platform, customers can prepare now and relax for the remainder of the festive season.'

Other steps NetSuite has taken to notify and assist customers with the VAT rate change include the establishment a dedicated micro-site on the NetSuite Web site, postings within the NetSuite user group online forum, and email communications. NetSuite Customer Support is also staffed with accounting compliance specialists to address customers' questions.

CRM software provider NetSuite made news earlier this month when it announced that The New Release, which owns and operates thousands of DVD rental kiosks throughout the U.S. under the Moviecube and Blockbuster Express brands, had decided to ditch its on-premises SAP (News - Alert) R/3 system in favor of NetSuite’s cloud-based solutions.

SAP recently announced that maintenance for its R/3 V4.6 solution will end as of March 2010 -- and that maintenance for SAP R/3 4.7 will be extended, but at a higher cost. These changes will affect approximately 70 percent of SAP users who now face the difficult decision of whether to pay increased costs for maintenance, or upgrade to SAP ERP 6.0.

In response to this, CRM software provider NetSuite announced an incentive program, the “NetSuite Crossroads Initiative,” as part of its ongoing effort to lure more SAP customers over to its NetSuite OneWorld cloud-based offering. The new program targets SAP customers facing “end-of-life scenarios” with their SAP R/3 software.