Table of Contents
- 1 Multi-company Management in Microsoft Dynamics 365 Business Central
- 2 Benefits of Business Central Multi-location Feature
- 3 Consolidations Performed
- 4 Consolidation for Companies
The deployment of Microsoft Dynamics 365 Business Central has helped businesses with multiple legal entities ensure robust management within the same environment and localization. Unlike in the past, when it was more complex to get a new company set up, the latest Business Central Intercompany feature has made it much easier and more convenient. Now, you can make the best of the new replication tool to synchronize the organization’s master data and initiate creating intercompany accounts.
Multi-company Management in Microsoft Dynamics 365 Business Central
Once you step out of the core financials and begin using modules, such as Distribution, Manufacturing, Jobs, Service, or other applications integrated with Business Central, setting up these same entities in the other modules gets critical.
Multi-company or intercompany feature in Business Central is a power-packed add-on product. Some of its key features that modern-day businesses can get are listed below.
Although Single Company in Microsoft Dynamics 365 Business Central is a small subset, it is extensively expandable with multi-company management. Business administrators can make the most of an efficient transaction workflow, powerful filtering capabilities, and a simplified user interface to manage multiple entities in a single instance.
Benefits of Business Central Multi-location Feature
Small and medium-sized enterprises can leverage the fundamentals of Dynamics 365 Business Central to accelerate their financial close and ensure robust reporting.
This SaaS ERP by Microsoft is embedded with advanced functionalities to streamline accounts receivables and payables. You can witness the automatic reconciliation of accounts, close faster, and report on financials accurately while maintaining compliance as well.
Additionally, it lets you improve forecast accuracy with comprehensive data modeling and analysis across multiple verticals. Here, connecting to an experienced Business Central Consultant can get you customized reports, which you can share via seamless Excel integration.
Once you integrate multi-location modules, you can add more value to your business expansion and growth.
Consolidation for Companies
Company Structure: – Company with global presence.
The Problem: Efficient Management of Multiple Companies
Our client encountered challenges in managing multiple entities and the issues were getting complex with the expanding business operations. For example, two or more subsidiaries of a company frequently do business with each other.
They needed a solution that would enable them to distribute sales and purchasing documents, as well as general journal entries, across their satellite offices, sales branches, and subsidiary companies. The goal was to reduce data entry efforts, save time, and increase overall operational efficiency.
Solution: – Business Central’s Intercompany Feature
To address the challenges of managing multiple companies efficiently, the company opted to use Microsoft Dynamics 365 Business Central’s Intercompany Feature. This solution provided them with a comprehensive way to handle intercompany transactions seamlessly. The Intercompany Feature allowed the trading company to define mappings between the items and chart of accounts of each entity involved (e.g. Company A and Company B). When one subsidiary, say Company A, required items from another subsidiary, Company B, it could create a purchase order in Business Central and send it to Company B.
In Company B’s Business Central database, the system automatically generated a corresponding sales order with the appropriate items or general ledger (G/L) accounts, based on the predefined mappings. This streamlined process eliminated the need for manual re-entry of data, ensuring accuracy and consistency throughout intercompany transactions.
When Intercompany functionality is set up in Business Central, there are two ways transactions between companies in the same database can interact with one another:
Intercompany focuses on sales and purchase documents and general journal lines, and allows transactions between multiple Business Central databases. For example:
There are four main benefits to the intercompany functionality:
Conclusion: Managing multiple companies can be a complex task for businesses with a global presence. Microsoft Dynamics 365 Business Central’s Intercompany Feature provided our client with a robust solution to streamline intercompany transactions, ensuring data accuracy, reducing data entry efforts, and enhancing overall operational efficiency.
By leveraging the power of Business Central’s Intercompany Feature, the company was able to improve collaboration between subsidiaries, optimize resources, and gain a competitive edge in the market. Embracing such innovative solutions can propel companies toward success in today’s dynamic and interconnected business landscape.
At Navisionindia, we let the business drive maximum business outcomes with the Business Central Intercompany feature and assisted them in driving more efficiency than before. Along with time-saving, cost-saving, and highly scalable solutions, we rendered unmatched support services to ensure business continuity even while eliminating the challenges and beyond the implementation lifecycle.