Multiple Companies
Advantages for setting up separate companies
- Separate addresses for reports
- Individual Federal ID’s
- 1099 functionality
- Security – assign users to individual companies
- Easy to use different Chart of accounts
- Easy to do multiple currency
- Data is always per company to ease of data entry
- Allows for consolidation of different companies or all companies
Disadvantages
- One address only
- One Federal ID only
- Inability to restrict users
- Consumes one Global Dimension for Company Code
- Company dimension needs to be on ALL transactions
- System can be set for code mandatory
- System will not test to verify the Company code is the same on all transactions
- I.E. – The purchase invoice could be Company 100 in the header (for the Accounts Payable posting) but the lines could be to Company 200 if the user enters it that way
- If you have Vendor that can cross companies – the payment would need to be separated out by Dimension each time the payments are done
- Vendor would need to be sent multiple checks
- User needs to be aware of which company they are entering for and that each transaction is coded correctly