Kazakhstan Localization for Dynamics 365 Business Central

ZF expanded its finance operations into Kazakhstan and required a Business Central implementation that met local accounting, tax and banking requirements while aligning with the company’s global Dynamics 365 footprint. Awara IT was engaged as the implementation partner to merge ZF’s global Business Central baseline with Kazakhstan-specific finance localization and to integrate local bank channels and existing 1C systems.

The project delivered statutory-compliant ledgers, automated bank reconciliation and a controlled data synchronization approach with ZF’s global BC instance. The outcome reduced manual work in Kazakhstan finance operations, shortened the monthly close, and established a repeatable pattern for future localizations across the region.

Client / Industry / Country

ZF is a global automotive systems supplier headquartered in Germany, specializing in components and systems for cars. The engagement focused on ZF’s expansion into Kazakhstan where local subsidiaries needed compliant finance systems integrated with the company’s global Microsoft Dynamics 365 Business Central landscape.

Business challenge

ZF’s global Business Central rollout did not include Kazakhstan statutory requirements — local chart of accounts, VAT and reporting formats, currency handling (KZT) and bank payment channels were missing. The finance team in Kazakhstan was reliant on manual spreadsheets, local 1C records and ad hoc bank exports for reconciliation, creating risk during statutory filings and delaying consolidated reporting.

Additionally, ZF required a safe, auditable data flow between the Kazakhstan entity and the global BC environment to support intercompany transactions and consolidation. The challenge included mapping local accounting practices to the global chart of accounts, implementing electronic reporting for tax submissions, and establishing secure integrations with Kazakh banks while maintaining centralized user management.

Why Dynamics 365 was selected

ZF had already standardized on Dynamics 365 Business Central for core finance globally; extending that platform locally minimized disruption and preserved centralized reporting and consolidation. Business Central’s modular finance capabilities and extensible localization features made it the natural choice to apply statutory requirements without creating a parallel ERP silo.

Awara IT was selected as the implementation partner because of experience with Business Central localization projects and practical integration patterns between Business Central and local systems such as 1C. The criteria were: maintain global BC master data and consolidation flows, meet Kazakhstan statutory reporting and bank integration requirements, and keep a low operational footprint for local IT.

Modules implemented

• General Ledger (local chart of accounts, dimensions)
• Accounts Payable (supplier ledger and local VAT handling)
• Accounts Receivable (local invoicing and language templates)
• Cash Management & Bank Reconciliation (local bank channels)
• Fixed Assets (statutory depreciation rules)
• Localization & Tax Reporting (VAT, statutory reports)
• Intercompany Posting & Consolidation
• Power Platform reporting (Power BI dashboards, Power Automate workflows)

Integrations

• Data synchronization with ZF global Business Central (intercompany and master data)
• One-way/bi-directional adapter for local 1C records (migration and periodic sync)
• Secure bank connectivity for statement imports and payment files (local banks)
• Azure AD single sign-on with corporate identity
• Power Platform connectors for statutory report distribution

Localization & compliance

The implementation addressed Kazakhstan statutory requirements: a localized chart of accounts mapped to ZF’s global structure, VAT handling per local rules, and statutory report templates necessary for periodic filings. Electronic reporting formats and submission-ready extracts were implemented to match local tax authority expectations. Transaction records, invoice language templates (Russian/Kazakh where required), and KZT currency handling were validated against local accounting policies.

Compliance testing covered sample submissions and audit trails to ensure reports and tax filings matched statutory criteria. The solution preserved auditability for intercompany and local transactions to support both local compliance and group consolidation.

Business value

The project delivered auditable, statutory-compliant finance processes in Kazakhstan while keeping ZF’s global Business Central instance as the consolidation hub. Finance teams gained timely visibility into local operations, enabling faster decision-making and reducing dependence on spreadsheets and ad hoc tools. Automated bank reconciliation and standardized invoice processing lowered operational risk and operational cost for the local entity.

By establishing a proven localization approach and integration pattern (1C adapter, bank channels, reporting templates), ZF can apply the same delivery model to other countries in the region with reduced scope and implementation time. The solution also improved governance through centralized identity and controlled data flows between local and global systems.