Financial considerations
Financial considerations include General Ledger, Accounts Payable, and Accounts Receivable questions.
General Ledger
| G/L question | +/- | Multi-site | +/- | Single site with Multi-Warehouse |
|---|---|---|---|---|
| Are there multiple reporting entities (Balance/P&L)? | + | Multi-Site supports Profit & Loss and Balance Sheet statements by site. | = | Single Site supports P&L statements by distribution codes. A Balance Sheet is only available for the whole site. If unique Balance Sheets are required, they must be constructed manually. Warning: this process is manual and complex. |
| Is consolidated financial reporting required? | + | Multi-site supports the consolidation of reporting units within a site, multiple sites at the entity level, and multiple entities at the corporate level. | = | If multiple, non-linked databases are used, export/import utilities can be used to transfer G/L information. |
| Do you have completely different account numbers in different areas of the company? | + | Chart of accounts are the same at sites as at the entity they report to, or the sites contain a subset of the entity’s chart of accounts. If completely different account numbers are used in different areas, then separate entities must be created. | - | Only one Chart of Accounts is supported for all areas. |
| Are inter-company sales present? | + | Inter-company (sites) sales are recognized at the site and eliminated at the entity level through the Ledger Consolidation activity. | - | This is not supported. |
| Are entries required at the entity level? | + | Financial entries can only be entered at
the site level. A separate legal, business entity, like a holding company, may
require a separate site.
Note: Entries can also be made at each site to an
inter-company 'offset' account that will net zero when a consolidated financial
is run.
|
- | Financial entries can be entered within the site. (There is no separate "entity" level.) |
| Is reporting performed in multiple currencies? | + | Different sites may have different base (domestic) currencies, but each site must have the same domestic currency as the entity it reports to. | - | One base reporting currency is available. |
| How are financial statements maintained? | = | Financial statements should be maintained for each site or entity. Sites typically maintain statements for their own ledgers. Entities typically maintain statements for the sites that report to them. However, you can maintain statements for any combination of sites, using an external tool such as the Excel add-in. |
= | Financial statements exist at the site level. |
| Do you need to manually input journal entries for multiple sites from one location? | + | From a central site, you can use Journal Builder to enter journal entries for multiple sites. | = | There is only one site and one set of journals. |
Accounts Receivable:
| A/R questions | +/- | Multi-site | +/- | Single site with multi-warehouse |
|---|---|---|---|---|
| Is centralized order entry required? | = | Centralized and decentralized order entry strategies are supported. | = | Centralized and decentralized order entry strategies are supported. |
| Is consolidated invoicing performed across sites? | = | Multi-site does not support consolidated
invoicing.
Invoicing is controlled at the site level. However, you can use the Invoice Builder to create and post invoices and credit memos for the current site and other target sites for customer order shipments and returns |
+ | Consolidated invoicing is supported. |
| Is centralized cash application required? | = |
Multi-site supports centralized or decentralized cash application. Cash application across sites using the same base currency is supported. Cash application across sites using different base currencies is not supported. |
= | Centralized cash application is supported. All warehouses must maintain the same base currency. |
Accounts Payable:
| A/P questions | +/- | Multi-site | +/- | Single site with multi-warehouse |
|---|---|---|---|---|
| Is consolidated vouchering across sites required? | = | From a central site, you can run Voucher Builder to create vouchers and adjustments for other sites when generating vouchers from PO Receipts. You can also create manual vouchers across sites; however manual adjustments across sites are not supported. | = | Supported via a single site. |
| Are centralized payments required across sites? | = | Multi-site supports this functionality. | = | Supported via a single site. |
| Do the payment sites have the same currency? | = | All sites sharing payment information must have the same base currency. | = | All warehouses must maintain the same base currency. |
| Are centralized commissions required? | = | Multi-site supports centralized commission payment across sites. | = | Supported via a single site. |
| Is centralized vendor maintenance required? | = | Multi-site, with a master site setup, supports centralized adding and maintaining of most vendor data. Deletion must be done at sites. | = | Supported via a single site. |