Posts Tagged tax
Do all signs point to an unorganized implementation of Order-to-Ship?
Posted by ryan.alford in Uncategorized on July 1, 2010
It’s not an easy job. An optimized Order-to-Ship business process offers continual progress towards improved cost control and delivery performance.
However, there might be a few challenges in the systems, including:
- Rework to correct data accuracy issues
- Late shipments and setbacks in delivery performance
- Increased customer complaints
- Time spent on complaint resolution
- Poor management of backorders
- Inefficient order processing and fulfillment
- Untimely invoicing
- Diminished cash flow and sales margins
In an Aberdeen Research study called “Working Capital Optimization: Increase Cash Flow in the New Economy,” author Nari Viswanathan said that “Best-in-Class companies are 30% as likely as all others to use cash conversion metrics as part of their supply chain organization metrics. Companies that embed cash conversion metrics into the set of supply chain metrics are twice as likely to have reduced their cash conversion cycle over the past year (45% versus 21%). Some of the key metrics that have been adopted as part of the process are: Sales forecast accuracy, on-time shipping, on-time delivery, inventory turns, logistics costs as a percentage of sales, and gross profit margin.”
Achieving an on-time shipping and delivery system is an industry standard met by few. Using JD Edwards can get you on your way, but will only take you so far.
To read more, click here.
JD Edwards Executive Luncheon in Greensboro, NC
Posted by ryan.alford in Uncategorized on June 9, 2010
Bring your appetite and join InsightSoftware.com and brij for a sumptuous meal and great networking on June 23, 11:30-1:30. You will see why InsightSoftware.com is quickly becoming the reporting tool of choice within the JD Edwards community.
With Insight you truly revolutionize operational reporting throughout your organization. Insight supplies solutions for functional areas such as: Finance, Human Capital, Supply Chain, Manufacturing and Project and Asset Management. Insight goes beyond mere reporting to drive productivity and profitability gains throughout your organization.
Leave with knowledge of the solutions that can help you optimize your business processes, all over lunch. We will treat you to lunch at the UNDERCURRENT restaurant . Click here to RSVP.
User Group meetings on the horizon:
Rocky Mountain User Group on June 10: http://bit.ly/diOd8T
JD Edwards Southeast Regional User Group in Atlanta, GA on June 17: http://bit.ly/9ewZJR
Eastern Canada Regional User Group on June 21 in Mississauga: http://bit.ly/9zCbOF
Forecast-to-Make: A Structurally Sound Process?
Posted by ryan.alford in Uncategorized on June 1, 2010
Do you experience materials shortages and capacity constraints? It’s vital to increase productivity and information accuracy by proactively ensuring that key managers and users can access accurate and timely information to make sound, in-the-moment decisions.
Running a world-class operation starts with the necessity for at least 99 percent accuracy of Item Master data. For many, this is easier said than done. However, with the correct tools the accuracy of Item Master records, Bills of Material, and Routings can be assured.
Once this initial foundation is secured, then focus turns to proactively optimizing scheduling to maximize available capacity and ensure availability of raw materials. Again, although JD Edwards stores meaningful information in these areas, many struggle to access real-time actionable information that enables optimized processing. Finally, having a full grasp of manufacturing cost variances and their drivers can make the difference in driving increasingly lower costs and fewer surprises.
With the correct tools you can unlock the rich data stored in JD Edwards to ensure the following: manufacturing tactics are aligned with the corporate strategy; forecasted demand matches market requirements; manufacturing processes are tuned to meet forecasted demand; and that ongoing reduction of cost and variances is possible.
To read more, click here.
The “Software Tax” – Will it Cripple Colorado’s Economy?
Posted by ryan.alford in Uncategorized on February 11, 2010
I’m of the mind that taxes pretty much stink. I’m sure many agree. In cartoons and movies alike, the “Tax Collector” is always portrayed as a seedy individual who only cares for himself, his job and the state. But the other side of the coin is quite simple: Taxes pay for much needed services within a society.
Now that the United States is witnessing its worst recession since the Great Depression, budget shortfalls are numbering into the billions of dollars (ugh…and trillions). Each state – with the exception of only a few – is in the red. For example, Colorado’s education system has been greatly affected and can no longer receive cuts to its budgets. To make up for this and other state budget shortfalls, more changes are needed to fill the gap. Over 2010, the state will see massive tax hikes and the elimination of tax credits – for businesses and citizens alike.
But, when does the tax legislation begin to infringe on a society’s progress? When do those taxes begin to alter the competitive landscape for business? The Colorado government’s latest tax scheme – HB 1192 or “Software Tax” – is an example of a tax that just plain stinks; it’s bad legislation, plain and simple.
The way HB 1192 is setup is not in the best interests of Colorado’s citizens, purely because it directly affects business. It’s also being fast-tracked through legislation – already passing the first major hurdles and on its way to full-blown approval. If it does pass, it will take effect March 1.
(Maybe it has already passed and nobody has been notified. Uh-oh.)
So, what’s all the fuss about?
How this will affect companies in Colorado is still uncertain. However, one can ascertain that the use of software by businesses will be a primary target – imposing additional expense to the cost of doing business in the state.
Think of how much software a business uses on a daily, weekly and annual basis. Of course, large businesses use hundreds of different software applications. Small businesses are certainly not out of the picture either. The use of technology in Colorado and the proliferation of technology will be negatively impacted. It isn’t just a simple tax: It’s a slow bleeding of the state’s intellectual resources.
According to Su Hawk of the Colorado Technology Association (CTA), the software tax “is the most dangerous bill our organization has seen in its 16-year history because it is extraordinarily confusing, complex and costly for technology companies and technology users throughout all companies in our state.”
Interestingly enough, this new software tax will have a ripple effect – stretching from businesses to citizens, and state visitors as well. First, the legislation is very confusing and massive at the same time. This mixture usually creates more confusion and apathy among the state’s elected officials who have the power to deny passage of the changes. Their understanding of HB 1192’s power isn’t entirely understood. Why? HB 1192 isn’t the only turd being passed through the doors of the state government. There’s only so much state officials can review and fully understand. They’re only shown the dollars signs and the bottom line, which only affects the short-term situation. The long-term implications are an entirely different story (probably more depressing than I care to trudge through at this point).
None of this bodes well for those who are against the “Software Tax.” Here’s how the CTA views the problem and what it will do:
- All software that was designed for one user but then resold to a second user would become taxable
- If a company develops software and then sells its business to a third party, they then would be selling “taxable software” when the business is sold
- Taxable software includes all prewritten updates/upgrades. If these charges are not separately stated from a maintenance fee, the full charge for maintenance and update becomes taxable.
- Charges to customize “base software” could be taxable if not separately stated from the overall purchase of the software. (Thus, businesses will need to be very careful about how they invoice customers, otherwise labor will become taxable.)
- In general, all services not separately stated from the license of software could become taxable (installation, customization, maintenance . . . )
- Where software is located or how the software is transferred to a user does not change the taxability of software. As a result, the sales tax would then apply to all ASP and SaaS models or any other form of “cloud computing.”
- The language could apply to many transactions, which include a software component. For example, online banking software provided to bank customers as part of their overall fees for banking services may become taxable. Any other fees for services where a customer has access to utilize some form of software may become taxable if the charge for services and software are not carefully segregated.
- Many more…
Further down the rabbit’s hole…
Would these taxes and tax credit eliminations be necessary if the government would restrain its wasteful spending and implementing of unnecessary programs? Of course, we’re talking about the state of Colorado, but this affects the likelihood of tax programs for the nation. Taxes are necessary. When do they become unnecessary? Simple. Taxes become a problem when they enforce a burden on economic growth and forward progress. That’s counterproductive to our current state of affairs, not ideal.
Some helpful links:
Your thoughts?