| Multicompany environmentsInfor LN provides extensive support for large global enterprises that
comprise multiple companies and any number of locations. If the various companies or business units are located in
separate countries, you must set up a multicurrency system for the companies of
the multicompany structure. To meet the requirements of multicompany environments, LN provides these
features: Multicompany building blocks To model a multicompany environment, these building blocks
are available: Financial companies A company with at least one set of financial tables. The
main function of a financial company is to register all accounting transactions
that result from the activities carried out in the enterprise units that are
linked to the financial company. These activities consist of the operational
and logistical transactions that result from a logistic goods flow and from
production, service, warehousing, and support activities. Logistic companies A company used for logistic transactions, such as the
production, purchase, sales, warehousing and transportation of goods. All the
logistic data concerning the transactions is stored in the company's
database. Enterprise units A set of logically grouped entities linked to a financial
company and to the same logistic company. Enterprise units are considered
independent financial units within a logistical context. Sites If multisite is implemented, sites constitute a set of logically grouped entities linked to a logistic company.
Sites are considered independent logistical units within a logistical context.
A site is used for logistic transactions, such as the production, purchase,
sales, warehousing and transportation of goods.
An LN multicompany environment usually consists of a structure of multiple logistic and financial companies, depending on the structure of your
organization and the number of servers on which the LN databases
reside. Enterprise structure modeling You can use the Enterprise Modeler tool to model the structure of your
enterprise. In this way, you can model your enterprise independent of the
organization of the LN databases. Alternatively, you can set up the enterprise structure
directly in the Enterprise Modeling Management module. In the Enterprise Modeling Management module, these entities are defined for the companies of your
multicompany environment: See the User Guide for Enterprise Structures
(Ucomentstructug). Multicurrency systems In LN, a
logistic company can operate in multiple countries. The LN multicurrency systems
enable a company to conduct accounting in more than one currency. Amounts can
be calculated and registered in up to three currencies. Intralogistic-company transactions Sales offices, purchase offices, work centers, service
centers, and warehouses are entities of logistic companies. The entities are
grouped into enterprise units. You can define the enterprise units in one logistic company
as each other’s customers and suppliers and model the goods flow and the
corresponding financial relations, such as invoicing and pricing agreements
between them. To accomplish this, you must define internal business partners
and link the business partners to the enterprise units. A one-to-one
relationship must exist between internal business partners and enterprise
units. Data sharing The companies of a multicompany structure must use
consistent data. For example, you can use the same calendars, item codes,
business partners, and pricing information in the various companies. Some data must be shared, other data can be shared if
required, and still other data must not be shared at all. You can use several
data sharing and replication techniques to make the same data available to
companies. Multicompany processing The multicompany structure enables enterprise-wide
production planning and operations management. The following sections describe the multicompany functions
that the various LN packages support.
Multicompany Financials In one logistic company, you can process logistic transactions
between departments, work centers, and warehouses of enterprise units that are
linked to different financial companies. If the debit and credit sides of a
logistic transaction are posted to different financial companies, LN can automatically
create intercompany transactions between the companies. You can aggregate the data of a group of financial companies to
the financial group company for corporate accounting. Multicompany Taxation Tax reporting is part of the financial accounting and is
restricted to one country. Therefore, the LN tax handling in a
multicompany structure is similar to the tax handling in a single company
environment. Tax handling in LN includes the following: Tax registration For tax registration, you define the various tax details for
each country in the Taxation module. In the General Ledger module of Financials, you specify the
ledger accounts for the tax amounts separately for each financial company. LN can post the tax
amounts calculated for a tax code to different ledger accounts in the
individual financial companies, for example, in a single logistic,
multifinancial company structure. VAT processing for intra-EU transactions The goods transfer between the countries of the European Union
(EU) requires value-added tax (VAT) handling. Depending on the countries in
which the goods are issued, delivered, and invoiced, various VAT types apply to
the transactions. Tax registration in a foreign country In some situations, transactions must be reported for taxation
in a foreign country. Typically, this can happen if service items are delivered
directly from the supplier to the customer at which the service activities are
performed, and if spare parts that were not used are returned directly from the
service location to the suppler.
Multicompany Invoicing Invoicing in LN includes the following: Sales invoicing For one business partner, you can combine sales invoice
lines from various logistic packages such as Sales, Project, and Service on one invoice
document, provided that the conditions for the composing criteria are met. Invoicing can combine
financial data such as manual sales invoice data into one invoice along with
other logistic data. Invoice documents are generated for each financial
company. Intercompany Trade For internal trade, internal financial settlements are
generated if goods and the invoices for the goods are sent by or received by
various entities. The entities can be departments, warehouses, and internal or
external business partners. LN automatically generates the internal invoices or the
settlement between the associated entities in the financial
companies. The invoicing can occur between enterprise units of the
same logistic company and different financial companies. LN uses the self-billing
function to generate the internal invoices and payments.
Multicompany Enterprise Planning You can use central multicompany planning to define a central
plan that coordinates and triggers the local plans in the production companies.
You can also aggregate and disaggregate the plans to different
levels. Multicompany Manufacturing Product definition, engineering data management, production
scheduling, and execution is controlled in each logistic company. Enterprise
units do not affect activities that have no financial impact. In a logistic company, routings can include work centers in
different countries that belong to different enterprise units. The
work-in-process (WIP) transfers are posted to the financial companies of the
enterprise units. Multicompany Sales and Procurement During sales order entry, to see the available inventory in
warehouses of your own and other logistic companies, you can use the bill of
enterprise or use Enterprise Planning and Order Promising. If the sales office and the warehouse
are linked to separate financial companies, LN can generate
intercompany settlements between the financial companies. LN registers some financial business partner data separately for each sales office
and for each purchase office. Various enterprise units can conduct business
with the same customers and suppliers. In a multicompany structure, you can manage all or part of the
purchase orders centrally. For example, you can create a central purchase
contract with your suppliers, including price and discount agreements that
apply to all the companies of your organization. Multicompany Project You must link a project to an enterprise unit and, in this way,
to a financial company. If you use multiple financial companies, you can
perform separate financial accounting for the projects of one logistic company. You can aggregate the data of several subprojects to a main
project for integrated project monitoring. You can specify a project currency for each project and
subproject. In this way, you can manage a project in any currency, for example,
the local currency of the country where the work is performed. Multicompany Service Service departments and warehouses that contain spare parts and
components used for service and maintenance belong to enterprise units. To
perform separate financial accounting for the service departments and their
warehouses, you can assign service departments and warehouses to enterprise
units that are linked to different financial companies. If material, labor, or other costs are transferred between
service departments and warehouses, or from one service department to another
(in the case of internal subcontracting for depot repair), LN can perform the
invoicing between these departments and warehouses. In the Intercompany Trade module, you can define intercompany trade relationships with invoicing between
various entities. You can also record and process service operations in a
multilogistic company environment. Multicompany Warehousing You can define intercompany trade relationships between
enterprise units or individual warehouses of the same logistic company for the
transfer of material, labor, or other costs between warehouses, and to generate
invoices for these without using sales orders and purchase orders. For example,
you can use this to transfer goods between warehouses in different countries. You can define warehouse surcharges, which are added to the
actual costs of the goods either when the goods are issued from a warehouse or
when the goods are received. Multicompany Freight You can centrally manage and process freight orders (and freight
order clusters), shipments, and loads across multiple locations. This process
gives you a clear insight into the transport-related requirements, optimization
in the handling of freight orders, consolidation and planning of loads and
shipments, reduction of costs, and subcontracting of transport to
carriers. | |