Multicompany

Outgrown your accounting system?

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If you read the brochure of just about any accounting system, it will claim the application can support “multicompany.” Unfortunately that doesn’t tell you much.

Multicompany business processes can create complications throughout all facets of the accounting process whether it is in accounts payable, accounts receivable, general ledger or financial reporting. Multicompany accounting is particularly difficult when your organizations are a little bit different due to line of business or country anomalies. This organizational diversity can create the need for different chart of accounts, different closing calendars, different currencies, different taxes, different languages and so on. Unfortunately, most systems can only handle multicompany situations when everything is the same.

But is that how organizations really work?

As a core component in the FinancialForce accounting engine, multicompany capabilities are available throughout all functions of the application. The system is designed so individual companies can create their own parameters for things such as the chart of accounts, currencies and period close calendars. The system expects organizational diversity, yet it still retains the ability to make these different entities work together in the same system.

For instance, self-balancing intercompany journals can be posted across companies with different chart of accounts or currencies. The system automatically generates the due to/due from entries and ensures that the transactions balance in document, home and dual currencies. The capabilities also extend to reporting. The system includes special reporting hierarchies that sit above the chart of accounts to help roll information up across diverse chart structures.

Highlights

• Create different chart of accounts for each company
• Flexible period close dates
• Automatically balancing intercompany entries