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ERP for Your Subsidiary in Türkiye: Localisation, E-Documents and the Right Set-up

TopicsERPDigital Transformation

MindDX Insights cover: ERP for your subsidiary in Türkiye; what a subsidiary must cover, three ERP set-ups, who provides the localisation, hosting and data, scope first then set-up

In short: A company in Türkiye that belongs to an international group has to meet Turkish obligations its headquarters’ ERP was not built for: electronic invoices and dispatch notes through the Turkish Revenue Administration (GIB), the electronic ledger, statutory accounting and the Turkish data protection law. There are three common set-ups: roll out the group ERP with a Türkiye localisation, run a separate local ERP connected to the group system, or keep the group ERP and add the Turkish e-document and accounting layer around it. Which one fits depends less on the software than on who provides the localisation, who carries the responsibility when regulation changes, and how the subsidiary’s data flows back to the group.

What does a subsidiary in Türkiye have to cover?

The obligations do not depend on where the group is headquartered. A company operating in Türkiye has to comply with the following, whatever ERP the group uses:

  • E-documents: e-invoices, e-archive invoices and e-dispatch notes are issued and received electronically under GIB rules, either directly or through a private integrator.
  • E-ledger: the statutory books are kept and submitted electronically.
  • Statutory accounting and tax reporting: the Turkish chart of accounts, taxes and statutory reports exist alongside the group’s reporting standards.
  • Personal data: Law No. 6698 on the Protection of Personal Data applies, including to transfers of personal data abroad.

The practical consequence: the question is never only «does our ERP work in Türkiye?», but «who makes it compliant, and who keeps it compliant?».

Three ways to set up ERP for a Turkish subsidiary

Set-upWhen it fitsWhat to check
Group ERP with a Türkiye localisation
The headquarters’ system is rolled out to the subsidiary
The group runs one template worldwide and the subsidiary’s processes are close to itWhether a Türkiye localisation exists for this product, who provides it, and how e-documents are connected
Separate local ERP, connected to the group
Often called a two-tier set-up
The subsidiary is small, or its processes differ strongly from the group templateInterfaces for master data, intercompany transactions and consolidation, and who maintains them
Group ERP plus a local layer
E-documents and statutory accounting handled around the group system
The group wants one operational system but the local requirements are narrowDouble data entry, reconciliation between the two layers, responsibility for updates

Our assessment is that the second and third set-ups are often chosen to avoid a localisation question, and the question then returns as an interface question. None of the three is right by default; the choice should follow the subsidiary’s processes, not the group’s software habit.

Who provides the localisation, and who keeps it current?

For international ERP products, the Türkiye localisation is frequently not delivered by the vendor itself but by a local implementer, or built in the project. That matters more than any feature list, because Turkish e-document rules change and somebody has to update the system each time. Three questions clarify it:

  • Is the localisation a maintained package or project code written once for you?
  • Do the e-document flows run in the system, in an add-on module or through a private integrator?
  • When regulation changes, who updates the system, within what time, and under which contract?

Hosting and data

Many groups run their ERP from a central data centre or a cloud outside Türkiye. That is possible, but where personal data is stored and transferred is assessed under Law No. 6698. Whether the subsidiary runs on the group’s cloud, a private cloud or local servers, data location and backup terms should be set out in writing before the decision. The NIST definition of cloud computing is a useful common vocabulary for these discussions.

Connecting the subsidiary to the group

Whatever the set-up, the subsidiary’s data has to reach the group: customer and item master data, intercompany orders and invoices, and the figures for consolidation. Describing these flows in a shared notation such as BPMN 2.0 before choosing a set-up shows where integration is needed and who owns each step, and it gives headquarters and the local team one picture of the same process.

Questions to ask before deciding

TopicQuestion to ask
Process fitWhich of the subsidiary’s processes follow the group template, and which are specific to Türkiye?
ComplianceWho provides the Türkiye localisation and the e-document connection, and who is responsible for updates?
Group integrationHow do master data, intercompany transactions and consolidation figures flow, and who maintains the interfaces?
Hosting and dataWhere is the data stored, and how are transfers of personal data abroad handled?
Total costBeyond licences, what do localisation, interfaces, migration, training and annual support add?
Local supportWho supports the local users after go-live, in Turkish, and with what scope?

For general ERP selection criteria, see our article on five critical capabilities when choosing ERP; for comparing quotes, see the five critical line items in an ERP quote.

The right order: scope first, then set-up

When the set-up is decided at headquarters before the subsidiary’s processes and obligations are clear, the gap comes back after go-live as manual work, extra interfaces and compliance risk. The right order is: measure the subsidiary’s current state, describe its processes, validate the scope including the Turkish obligations, and only then choose the set-up. We sum this up as «X-ray first, then diagnosis».

The MindDX approach

MindDX works in Türkiye with more than one ERP product and provides Türkiye localisation, e-document modules included, for the ERP products it implements. Assess validates the subsidiary’s current state and needs and produces a written validated scope, against which the set-up options can be compared on the same criteria. A comparison of two common options for manufacturing SMEs is in our ERP selection guide. Explore the MindDX Platform.

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