Configuration for Multiple Unit Coordination (MUC)

Outcome

You can use M3 jointly by several divisions, legal units, for centralized administration of customer orders, distribution and requisition orders, and others, and of the financial system. Sales statistics, accounts receivable, accounts payable, and the general ledger are kept separately in each division.

You can use MUC to define users with access to all divisions, known as central users, or users whose access is limited to one division, referred to as local users.

An MUC environment affects all levels of the system to varying degrees.

Before you start

You must have thorough knowledge of your company, and of the different legal entities in the company and how they work.

Follow these steps

These are the few things to consider in the configuration of MUC:

• To configure MUC correctly, we recommended that you perform the activities in the order described.
• There is a distinction between the central, blank, division and the local divisions. Some activities are only carried out in the central division while others are carried out in all divisions. To carry out an activity in the blank division, you should be defined as a central user.
• During configuration, you often switch between divisions. Be precise, so you can define the information on the correct level, central or local, and if on local level, in the correct division.

Follow these steps to set up MUC:

1. Specify the company.

   Define the controlling company in 'Company. Open' (MNS095). To run MUC, select company type 2='Multiple units' on (MNS095/E).

2. Specify divisions.

   Define all divisions, legal entities, included in the MUC 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 needing to switch divisions and has the authorization to update central files, such as item, customer, and supplier files.

   Additionally, define one or more consolidated divisions, used solely for consolidated purposes and primarily for combined sales statistics.

3. Specify commands to switch between divisions.

   Create short commands, so users can switch between divisions in 'Function. Open' (MNS110).

4. 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.

5. Specify system calendar, system periods and seasonal curves.

   Define system calendars in 'System Calendar. Open' (CRS900), system periods in 'System Calendar. 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 divisions using the short command, repeating the process until all divisions are defined.

6. Specify 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 can centrally define all currencies used by the different divisions. That way, you do not have to define currencies for each local division.

   In 'Exchange Rate Type. Open' (CRS056), you can define central exchange rate types. You can also define exchange rate types in other divisions as local types, but you must check these against the central rate types for activities such as updating customers or suppliers.

   You can define central exchange rates pro forma for the central exchange rate types in 'Exchange Rate Type. Open per Currency' (CRS059). The exchange rates used in the system are specified 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.

7. Specify 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 UK (GBP).

8. Specify number series

   Define number series for customer, distribution, and requisition order in 'Number Series. Open' (CRS165). You can only do this in the central (blank) division.

   Define number series for the financial system in (CRS165) too. You must define these series for each division included in MUC.

   Define number series for customer invoices and internal invoices in 'Internal Invoices Series' (MFS165). Do this in each division.

9. Specify 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 central division defines the chart of accounts used in all divisions included in MUC. However, a local division can define separate accounts or an entire chart of accounts. If the same accounting identity exists at both the central and local levels, the local identity overrules the central one..

10. Specify facilities

    Define facilities in 'Facility. Open' (CRS008). You are not required to define facilities if the MUC configuration only includes the financial system.

    Facilities can include anything from a warehouse, production unit, a sales office, or any combination of these.

    A division can contain any number of facilities. When a facility is defined for a division, you cannot assign it to another division.

11. Specify internal transfer prices

    Define internal transfer prices in 'Internal Transfer Price. Open' (MFS001). You can only do this in the central (blank) division. The transfer prices are defined specifying how they are calculated from a selected calculation basis.

12. Specify 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 handle internal invoicing, you must define all divisions included in MUC as a customer and supplier in (CRS610) and (CRS620) respectively in each division. See the documentation about customer order and purchase.

13. Set parameters for internal invoicing

    The basic parameters required for internal invoicing between divisions are defined in 'Settings – Internal Invoicing' (MFS010) for each division. These parameters are required so that the sub-ledgers is updated automatically in connection with internal invoicing.

14. Define standard comments for internal invoicing

    If required, define a standard comment in 'Internal Invoice Text. Open' (MFS015). You can define a comment for all or a range of divisions. After you define a comment, you can copy it into an internal invoice whenever you create one.