Quick answer
A trading ERP in the UAE manages the buy-and-sell cycle for importers, distributors, and re-exporters: multi-currency purchasing, landed cost with freight and duty, customs and re-export documents, warehouses across mainland and free zones, price lists and discounts, sales orders and delivery, credit limits and collections, VAT, and margin reporting by product, customer, and shipment.
- Landed cost gives true margin per item and shipment.
- Multi-currency handling protects against exchange losses.
- Credit control keeps cash flowing.
- Free zone, mainland, and re-export flows need clear rules.
What should a trading ERP include?
- Purchasing
- Supplier orders in foreign currency with exchange rates.
- Landed cost
- Freight, insurance, duty, and charges allocated to items.
- Customs documents
- Records for imports, exports, and re-exports.
- Inventory
- Multi-warehouse stock, including free zone locations.
- Pricing
- Price lists, customer-specific prices, and discounts.
- Sales and delivery
- Quotes, orders, delivery notes, and invoices.
- Credit control
- Credit limits, ageing, and collection follow-up.
- Reporting
- Margin by product, customer, salesperson, and shipment.
Why is landed cost so important?
If freight and duty are not added to item cost, margins look better than they are. A trading ERP should allocate charges by value, weight, or quantity to each item in a shipment, so pricing decisions use real costs.
How should traders control credit?
- Set limits. Credit limits and terms per customer.
- Block risk. Hold orders over limit or overdue.
- Monitor ageing. Weekly ageing reports by salesperson.
- Follow up. Reminders and calls before and after due dates.
- Review. Adjust limits based on payment history.
What UAE rules affect trading companies?
- VAT at 5 percent, with zero rating for many exports and reverse charge on imports.
- Customs procedures through each emirate’s customs authority.
- Designated zone VAT rules for some free zones.
- Corporate tax and transfer pricing for related-party trades.
- E-invoicing from 2027 in phases.
See VAT accounting software in the UAE and e-invoicing in the UAE.
How does Hudace support trading companies?
Hudace ERP connects sourcing and procurement, supply chain, sales, and finance, and tax and trade covers VAT, customs and duties, and trade compliance.
Frequently asked questions
What is a trading ERP?
An ERP built around buying, stocking, and selling goods, with costing, pricing, and credit control.
What is landed cost?
The full cost of goods including purchase price, freight, insurance, duty, and other charges.
Can a trading ERP handle multiple currencies?
It should, with exchange rates and gains and losses posted to accounts.
What is a re-export?
Goods imported into the UAE and exported again, often through free zones.
How does VAT apply to exports?
Many exports are zero-rated, subject to evidence requirements.
How do I control customer credit?
Set limits, block risky orders, and follow ageing reports.
Does a trading ERP need a WMS?
Larger distributors benefit from WMS features for bins, picking, and dispatch.