Elementary costing 1: Sheep and bricks

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  • Reading time:6 mins read

Unless you are a non-profit, the point of the business is making money. It is surprising how many different ways of making money there are out there, but if you are in business, it is extremely likely that you make the money the easiest and the most common way around: by selling goods.

There are many ways goods come to be, but from perspective of a single business goods can be either purchased, or manufactured. But even companies manufacturing the goods they sell have to somehow get hold of the raw materials used to produce their goods. The most common way to get the raw materials for your manufactured goods is to purchase them. So in the end of the day it comes down to the simple fact that the most common way of making money is by purchasing and selling goods.

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Accounting vs. ERP: The saga continues

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Running a business using only accounting data can be pretty much the same as driving a car using rear-view mirror only. The purpose of accounting is to provide accurate and reliable overview of financial situation to interested parties. What this financial overview consists of is the stuff that has happened in the past, in other words: history. However, there are many drivers of business success other than just history of events that contributed to wherever you are at the moment.

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Accounting vs. ERP: Sticks and carrots

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When referring to their ERP systems, it is pretty common that customers refer to it as accounting software. While it is true that every ERP system embeds some accounting functionality, there is a major difference between these two categories of software. It starts with two things: what computers are good at, and the goal of accounting as a discipline.

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Automated version management? Of course!

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Imagine that whenever you edit an object in C/SIDE Object Designer, and save it, the system automatically saves it in the version history. Imagine that it never simply overwrites your previous version, but keeps all of them there for you. Imagine that you can see all of the modified versions of any object, then make any version the current version by doing as much as a single mouse-click, no tedious imports and exports needed. Imagine that this is true for all of the developers on your team. Imagine that it is completely, fully automated.

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Native vs. SQL: The Delta

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Early versions of SQL Server option for Microsoft Dynamics NAV (then called Navision) didn’t scale up as high as one would expect. Although SQL Server itself could scale up to thousands and tens of thousands of concurrent users, running a production environment of an ERP system is way different from running generic lab tests.

SQL Server 2000 brought many improvements, and finally outperformed Navision Database Server at any level of user concurrency. SQL was gaining momentum, and became the platform of choice for new implementations of Navision. When SQL Server 2005 came out, and when support for it was included in Microsoft Dynamics NAV 4.0, it could outperform the native database platform as much as 35%.

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