Are you a Microsoft Dynamics Business Central User that needs to report to Dutch Regulatory bodies? Since 2008 Microsoft and Semansys have worked together to support and enable users (entrepreneurs or accountants) of Microsoft Dynamics Business Central to complete the full process while still allowing the user the control of creating and qualifying the data for the regulatory body.
Why is this necessary?
Microsoft Dynamics Business Central is a popular accounting software used by small to medium business users and provided through the O365 business productivity suite. The information entered, administered and accounted in this system is crucial for the entrepreneur to support reporting to necessary government bodies (e.g. Annual Report to the Chamber of Commerce and Quarterly VAT report to the Tax Office). These regulatory bodies typically accept data in XBRL with a preference through electronic submission via APIs.
Entrepreneur or accountant could try to make XBRL by themselves, however this is not recommended since it’s a technical format and highly detailed. It is driven by a taxonomy that includes business rules for validation and delivery. We support the ability to export the data from their system and import it into xbrlOne to create, validate and deliver the XBRL in a single simple interface.
What is the process?
I have to submit a specific report to a specific reporting body?
The great thing about XBRL as the transport for business reporting is that it supports multiple different use cases without exposing the end user (accountant or entrepreneur) to the technical difficulties in creating it. The software provided by independent software vendors (ISVs) uses this standard driven by taxonomies published by regulatory bodies to support the I have to submit a specific report to a specific reporting body?
The great thing about XBRL as the transport for business reporting is that it supports multiple different use cases without exposing the end user (accountant or entrepreneur) to the technical difficulties in creating it. The software provided by independent software vendors (ISVs) uses this standard driven by taxonomies published by regulatory bodies to support the end to end standard business reporting (SBR) required.end to end standard business reporting (SBR) required.
The first prerequisite is to validate and understand which business report you want to create and where it has to be delivered. This is best done in consultation with your accountant or regulatory body as each governing body is different. You need to validate that your accounting software will support this report. For a list of Microsoft Dynamics supported XBRL reporting types you can refer to https://docs.microsoft.com/en-us/dynamics365/business-central/bi-create-reports-with-xbrl
The second prerequisite is to ensure your accounting data is entered correctly. Microsoft Dynamics Business Central makes this simple and easy to do as an entrepreneur using standard guidelines and business practices for common industries. It also allows grows with your business and you can involve and give access to an accountant or business controller when necessary.
How does the mapping work?
Microsoft Dynamics Business Central stores the data entered in it’s internal format and structure which is conducive to accounting. This accounting data needs to then be converted to a format useful for reporting. This format useful for reporting is XBRL, therefore a mapping within Microsoft Dynamics Business Central from the accounting data is necessary.
Taxonomies are not updated frequently since it will have a large impact to keep up to date. They are often done through regulatory departments which are driven by government agencies and the policies applied by the relevant governing bodies. Therefore they typically require appropriate communication and notice periods.
Once the taxonomy (or schema) is in the system then a knowledgeable expert should enter the mappings.Since this is not done too often, independent service vendors provide the experts necessary tools to do this efficient and quickly. Once the mapping is established, it can then be used and reused for any amount of reporting of data for that structure.
What happens if the XBRL created is not valid?
Since most of the validation rules are embedded in the taxonomy, the mapping and export will catch errors early on. Once exported, you can upload the Semansys DataBridge Format to xbrlOne, where it will be converted to XBRL and validated. The validation may yield conversion, business rules or filing rule errors which can be reviewed. You can then update the data in Microsoft Dynamics Business Central, export again and submit the updated content.
Once validated, you can then confidently trigger the delivery knowing that the data has been qualified and matches the expectations of the regulatory body.
We recognize that this process has a few different steps of manual interaction and was correct at the time to enable user requirements approximately 12 years ago. Now, we have new techniques and abilities both in Microsoft Dynamics Business Central through the AppSource store for plugins and integrations as well in the Semansys platform via APIs and cloud versions of our applications. We therefore have added to our backlog a direct connection that will be available in Microsoft Dynamics Business Central AppSource. This will enable the user to stay within Microsoft Dynamics Business Central while being able to quickly submit directly to the Dutch Tax Office through our xbrlOne platform.
We are looking for a launching customer or partner globally for this connection. If you’re interested in efficiently performing your reporting to your regulatory body and use Microsoft Dynamics Business central, please drop us an email at email@example.com for more information.