The establishment of new legal entities for the management of independent business lines or the opening of branches in other countries generates an inevitable complex operation. Financial transactions between all related companies are difficult to centralize with traditional accounting management applications, and manual data consolidation is time consuming and error generating.
Following the experience with groups of companies active in over 60 countries, SAP has created a special add-on to solve these challenges. SAP Business One Intercompany solution enables enterprise groups to easily manage internal transactions by automatically replicating processes, documents and records from databases.
The solution centralizes records of sales, purchases, stocks, etc. and consolidates all financial data into a single source. This reduces the time and effort of employees to correlate, replicate and record transactions and simplifies consolidated reporting across the entire group of companies. It is an SAP Business One add-on with complex functionalities, which involves multiple detailed configurations (defining component entities, the relationship between them, types of transactions and documents, corresponding accounting files, data synchronization mode, etc.), but in the end it generates high added value .
Benefits reported by SAP Business One Intercompany users:
The main advantages are the financial consolidation of data from all group entities, the centralized analysis of the commercial performance (sales, profitability target, etc.), the coordination and easy control of the entire activity.
With SAP Business One Intercompany, System Innovation Romania customers manage to:
- Consolidate, coordinate and centralize the activities of all branches, without manual data synchronization
- Unitary manage multiple legal entities regardless of their location, tax system or used currency
- Reduces the time required to produce consolidated financial statements
- Implement standardized financial processes for all entities in the group
- Increase productivity through saved time and operational simplification
SAP Business One Intercompany features:
From a functional point of view, the SAP Business One Intercompany solution has three main components:
- Data replication. The use of the solution implies the existence of a master database, in which categories are created and defined such as: customers, items, cost centres, recipes, price lists, etc. and the records are subsequently propagated in all group companies, based on the same codes. Consolidating the data thus becomes very easy.
- Trading within the group. Workflows are automated and a transaction initiated by a group company automatically generates correlated transactions in other entities. When a purchase order is placed in a company, a sales order is automatically generated in the corresponding company. Similarly, when a supplier makes a delivery to a recipient company, an entry / receipt note is generated. These automations speed up business processes and eliminate errors from manual record processing.
- Consolidation and reconciliation. The solution centralizes financial data from all entities in the group, in a single database. This functionality allows both coherent and consistent financial reporting and automatic reconciliation of records. An income generated by a company is automatically translated into an expense in the corresponding company in the group. Complementarily, the solution allows the correlation of information about debtors / creditors and offers a unique perspective at the level of the whole group, everything being transparent and without differences, generated by the manual registration of data.
The SAP Business One Intercompany solution addresses both companies that open branches in other countries or are part of groups with multiple legal entities. For companies with a presence in other markets, the add-on is functional with multiple locations and allows management in multiple currencies. For example, the parent company based in Bucharest will use SAP Business One located for Romania (tax system, interface, currency) and the Sofia branch will use SAP Business One located for Bulgaria. SAP Business One Intercompany is not suitable for managing subsidiaries and workstations, for which already SAP developed specific features.
If you are interested in simplifying the operational transactions between your group companies, contact a System Innovation Romania consultant right now for a free demo at https://sysinconsult.ro/contact/.