Migrating to NAV from Quickbooks – a few highlights

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When companies outgrow Quickbooks and are faced with migrating to a more functionally rich package like Microsoft Dynamics NAV, there are a few things the users miss. Since Quickbooks is geared for the small business user its primary goal is to make the user experience smooth and easy. Sometimes the result is great and for other systems to learn from. Sometimes it highly compromise the integrity of the system. I am going to list a few examples in this blog that I have come across.

Automatic bank statement import

This has been a holy grail for Quickbooks and Quicken. They have somehow worked with most banks in the US and generated a relationship with them where the bank provides a Quickbooks button which automatically fetches transactions into QB. Dynamics NAV recently decided to include this feature in its NAV 2015 version. It introduces a middle layer (third party) which takes care of mapping all the banks. This functionality has been taken further than QB. You can also send wires, stop payments and ACH’s. The system also works with international banks and takes advantage of the SEPA, a recently established European protocol for bank communication. In my opinion, Dynamics NAV is finally besting QB in this area.

Editing G/L transactions

In QB you are able to edit the general ledger transactions directly. Although many people see this as an advantage, I cannot find anything helpful about this. It is an example where the user convenience has drastically jeopardized the integrity of the system. You can basically put your G/L out of balance by editing the numbers. It certainly breaks GAAP rules of audit trail.

Inventory control

Recently I did come across a question from an ex QB user regarding posting of inventory. In QB you have to accounts that get hit when you post a receipt on a purchase order. In NAV you have four.

Let’s say you are buying an item A, quantity 1 for $100. In QB when you post the PO you would get the following result:

QB Blog

In NAV you have the following:

QB Blog 2

 

Why does NAV add two extra accounts? The reason has to do with maintaining inventory valuation correct in all cases.

Let’s say for example you then return the goods back to the vendor at $80. If you only had two accounts you would be left with a balance in inventory but no quantity as seen below.

QB Blog 4

 

This of course makes no sense. With NAV you’ll have the following.

QB Blog 3

The difference is between direct cost and purchases, and can be treated as expense/income. This of course make much more sense and is only one of serveral cases which can offset your inventory.

In conclusion

QB is certainly a decent product for its price, but any serious growing business will eventually hit a wall with the product. I don’t think Intuit will fix these issues in the coming future since many small business users actually celebrate the flaws. It gives them the flexibility they need and often they only need to answer to themselves. NAV however is a much more grown up package where exceptions are handled properly and audit trails preserved.

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