Dynamics 365 Business Central Kazakhstan Localization for Seven Refractories

Seven Refractories engaged Awara IT to replace legacy 1C systems with Microsoft Dynamics 365 Business Central, implementing Kazakhstan-specific localization to meet tax and reporting obligations. The implementation covered finance and accounting, production, purchasing, trade, warehouse and fixed assets while maintaining payroll and personnel in 1C during a phased migration. Awara IT led the solution design, localization development and integrations to bank-client systems and internal WMS hardware.

The project delivered a consolidated ERP platform that improved month-end close, automated bank reconciliation, and tightened inventory control across production lines. By using Business Central with Kazakhstan localization, Seven Refractories gained compliant financial reporting in KZT, real-time operational visibility and a migration path for payroll and HR data from 1C ZUP, lowering operational risk and improving decision-making cadence.

Client / Industry / Country

Seven Refractories is a mid-sized manufacturing company in Kazakhstan specializing in refractory materials for industrial furnaces and kilns. The company serves clients across Kazakhstan and neighboring markets in the Middle East region, operating multiple production and warehouse sites with an employee base typical for regional process manufacturers.

Business challenge

Seven Refractories operated on 1C for payroll and parts of finance while relying on legacy spreadsheets and disconnected systems for production, procurement and warehouse management. Month-end consolidation was manual, bank reconciliation required extensive human intervention, and inventory visibility across production and warehouses was limited. This fragmentation increased working capital needs, lengthened financial close cycles and constrained operational planning.

Regulatory and reporting requirements in Kazakhstan — local chart of accounts, VAT rules, KZT currency handling and electronic reporting — made it difficult to standardize processes while moving toward a single ERP. The client required an approach that would replace 1C for finance and operations but retain payroll continuity by integrating Personnel and Salary (1C ZUP) during the transition to avoid business disruption.

Why Dynamics 365 was selected

Dynamics 365 Business Central was selected for its integrated finance, manufacturing and warehouse capabilities, extensibility for country-specific localization and alignment with the Microsoft stack used by Seven Refractories. Business Central offered a faster path to standardized finance processes, multi-site inventory control and production order management while providing Microsoft-grade security and support for future Power Platform reporting and automation needs.

Awara IT was chosen as implementation partner due to prior experience delivering Business Central localization and integrations in emerging markets. The project approach prioritized a phased migration—deploying core finance, procurement, production and warehouse modules first, then integrating payroll and HR from 1C ZUP—reducing cutover risk while delivering measurable business improvements early.

Modules implemented

• Dynamics 365 Business Central – Finance & Accounting (local chart of accounts, VAT reporting)
• Production (process manufacturing order management and routing)
• Purchasing / Procurement
• Sales / Trade management
• Warehouse Management (bin locations, barcode scanning)
• Inventory costing (FIFO/weighted average)
• Fixed Assets management
• Bank reconciliation and payments
• Kazakhstan localization extension (language, reports, tax forms)

Integrations

• Bank‑client integration with major Kazakhstan banks (automated statements and payment file exchange)
• Personnel and Salary integration with 1C ZUP (synchronous payroll data feed)
• Barcode scanners and WMS hardware for warehouse transactions
• Microsoft 365 (Outlook/Teams) for document workflows and approvals
• Middleware using secure API layer (Azure Functions / Logic Apps) for message transformation

Localization & compliance

The implementation included Kazakhstan-specific localization: local chart of accounts, VAT calculation rules, KZT currency handling, mandatory tax registers and standard tax declaration formats. Awara IT delivered Business Central extensions that produce statutory reports in the formats required by Kazakhstani authorities and ensured Russian/Kazakh language support where needed. Compliance was validated through integration tests with local accounting staff and review by a regional auditor to confirm accurate tax calculations and reporting outputs.

Business value

Consolidating finance, production and warehouse processes on Business Central reduced manual reconciliation and improved the reliability of financial and operational data. Faster month-end close and automated bank reconciliation freed finance capacity for analysis rather than data assembly. Improved inventory accuracy and barcode-driven warehouse processes reduced stock discrepancies and lowered working capital requirements. Production scheduling and clearer material availability increased on-time fulfillment and reduced expedited procurement.

Maintaining payroll in 1C ZUP while integrating personnel data allowed a low-risk, phased transition that preserved employee payments and HR continuity. The solution also established a foundation for future Power Platform dashboards and predictive planning, giving leadership timely KPIs for working capital and production throughput.