This document explains how to configure M3 for multiple unit coordination Multiple Unit Coordination functionality.
Multiple Unit Coordination in M3 allows organizing the M3 company structure so it can handle more than one legal unit in the best possible way.
The process described in this document focuses on how to configure the physical flow and cost accounting. There are additional areas, primarily in financial accounting, on which Multiple Unit Coordination has an impact, for example, cross-division vouchers and overhead calculations between divisions. These areas are not covered in this process.
M3 can be used jointly by several divisions (legal units) for centralized administration of customer orders, distribution and requisition orders, etc. and of the financial system. Sales statistics, accounts receivable, accounts payable and the general ledger are kept separately in each division.
Multiple Unit Coordination enables you to define users that have access to all divisions (central users) or users whose access is limited to one division (local users).
A Multiple Unit Coordination environment affects all levels of the system to varying degrees.
Define the controlling company in 'Company. Open' (MNS095). To activate multiple unit coordination, select company type 2='Multiple units' on (MNS095/E).
Define all divisions (legal entities) that should be included in the multiple unit coordination for the company in Company. Connect Division' (MNS100).
Define a central (blank) division, used by central users. A central user can process information in other divisions without having to switch divisions and has also the authorization to update central files, such as the item, customer and supplier files.
Define also one or more consolidated division(s), used solely for consolidated purposes, and primarily for combined sales statistics.
Enter commands to switch between divisions
Create short commands, so users easily can switch between divisions in 'Function. Open' (MNS110).
Assign authorization to divisions
Give users authorization to process information and work in divisions in 'User. Open' (MNS150). Define both central users and local users.
Enter system calendar, system periods and seasonal curves
Define system calendars in 'System Calendar. Open' (CRS900), system periods in 'System period. Open Period' (CRS910) and seasonal curves in 'Seasonal Curve. Open' (CRS915).
Do this for each division. The easiest way is to define calendar, periods and curves for one division and then switch division using the short command, repeating the process until all divisions are defined.
Enter central currencies, exchange rates types and exchange rates
Define central currencies, exchange rate types and exchange rates in the central (blank) division.
Central currencies are defined in 'Currency. Open' (CRS055). You centrally define all currencies used by the different divisions. That way you do not have to define currencies for each local division.
Central exchange rate types are defined in 'Exchange Rate Type. Open' (CRS056). Exchange rate types can also be defined in other divisions as local types, but they must then be checked against the central rate types for activities such as updating customers or suppliers.
You define central exchange rates pro forma for the central exchange rate types in 'Exchange Rate Type. Open per Currency' (CRS059). The actual exchange rates used in the system are entered locally for each division, as described below. The reason for defining central exchange rates is that they must exist for validation of exchange rate type.
Enter local exchange rate types and exchange rates
Define local exchange rate types and local exchange rates for each division in (CRS056) and (CRS059) respectively. If the configuration includes divisions that use different currencies, it is important to be extra careful when doing this. For example, the exchange rate for NOK is different in Sweden (SEK) compared to the UK (GBP).
Enter number series
Define number series for customer, distribution and requisition order in 'Number Series. Open' (CRS165). You do this only in the central (blank) division.
Define number series for the financial system in (CRS165) also. You have to define these series for each division included in Multiple Unit Coordination.
Define number series for customer invoices and internal invoices in 'Internal Invoices Series' (MFS165). You do this in each division.
Enter chart of accounts
You can define chart of accounts either in the central (blank) division only or in local divisions. This is possible since the chart of accounts is a so-called mixed file.
The chart of accounts defined in the central (blank) division is used in all divisions included in Multiple Unit Coordination. However, separate accounts or an entire chart of accounts can be defined for a local division. If the same accounting identity exists on both central and local level, the local identity overrules the central.
Define facilities in 'Facility. Open' (CRS008). Facilities do not have to be defined if the Multiple Unit Coordination configuration only includes the financial system.
Facilities can be anything from a warehouse, production unit, a sales office, or any combination of these.
A division can contain any number of facilities. After a facility has been defined for a division it cannot be assigned to another division.
Enter internal transfer prices
Define internal transfer prices in 'Internal Transfer Price. Open' (MFS001). You do this only in the central (blank) division. The transfer prices are defined specifying how they are to be calculated from a selected calculation basis.
Enter customer numbers and supplier numbers for divisions
Define customer and supplier numbers for divisions in 'Customer. Open' (CRS610) and 'Supplier. Open' (CRS620) respectively. This is done in the central (blank) division.
To be able to handle internal invoicing, all divisions included in multiple unit coordination must also be defined as a customer and supplier in (CRS610) and (CRS620) respectively in each division. See the documentation about Customer Order and Purchase.
Set parameters for internal invoicing
The basic parameters needed for internal invoicing between divisions are defined in 'Settings – Internal Invoicing' (MFS010) for each division. These parameters are needed so that the sub-ledgers can be updated automatically in connection with internal invoicing.
Define standard comments for internal invoicing
If needed, define a standard comment in 'Internal Invoice Text. Open' (MFS015). A comment can be defined for all or a range of divisions. Once defined, a comment can be copied into an internal invoice whenever one is created.