DCision ERP, cloud or not, automates inter-company accounting for organizations with multiple locations, subsidiaries or branches. It simplifies the production of financial reports, centralizes inter-company transfers, the payment of purchase and sales invoices as well as cash management. This management also makes it possible to manage the consolidated financial reporting of several companies with different presentations and different participation’s between companies.
How it Works
The system allows distributions to be made to different companies (Satellite Databases) in the same transaction (Purchase / Sale / Journal entry) made in the database identified to manage accounts payable, i.e. the parent company (Central Database). The same principle applies for accounts receivable. Entering a inter-company transaction involves the real-time updating of the satellite databases and the central database.
For each distribution, the system allows you to enter the number of the company to which it is addressed. Thus, it is possible to keep the distributions to the accounts payable / receivable auxiliaries in the central company and those to the incomes / expenses GL in satellite companies. The system takes care of creating the transaction using an inter-company GL account in each satellite database. In the central database, only the distributions identified for the central company, including accounts receivable and payable, as well as the inter-company GL distributions of each satellite company. This is why cash-disbursements and cash-receipts are made from the central company.
Here, using a table, are the postings that the data entry gives, in real time:
| General Ledger | On-Screen Entry | Central DB Posting |
Satellite DB Posting |
|---|---|---|---|
| Accounts Payable or Receivable |
$$$ | $$$ | |
| Distribution 1 (Expense or Income) |
$ | $ | |
| Distribution 2 (Expense or Income) |
$ | $ | |
| Distribution n (Expense or Income) |
$ | $ | |
| Intercompanies (A/P ou A/R) |
$$$ | $$$ |
Note that it is possible to manage certain accounts payable and / or accounts receivable from a central base and to manage other accounts payable and / or other accounts receivable directly from the satellite database.
Access Control
Since companies have their own database, the control of user access to the different menus of the application of each company are controlled separately by company. As with all DCision ERP databases, access can be controlled by password, user name or role, a role can be assigned to a user without having to modify access controls when there is a change of user.
Permanent Lists
Since each company has its own database, the permanent lists (customers, suppliers, etc.) can be kept separate. Only the central database should have the customers and suppliers of all satellite databases if it is used to centralize accounts payable and accounts receivable. This is why the use of this management also requires the management of automatic updates of permanent lists. This is a mechanism for synchronizing the central database with the permanent lists of satellite databases, the whole being transparent to users.
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