Separate Companies / Multiple companies 

Advantages for setting up separate companies

  • Separate addresses for reports
  • Individual Federal ID’s
  • 1099 functionality
  • Security – assign users to individual companies
  • Easy to use different Chart of accounts
  • Easy to do multiple currency
  • Data is always per company to ease of data entry
  • Allows for consolidation of different companies or all companies

Disadvantages

  • One address only
  • One Federal ID only
  • Inability to restrict users
  • Consumes one Global Dimension for Company Code
  • Company dimension needs to be on ALL transactions
    • System can be set for code mandatory
    • System will not test to verify the Company code is the same on all transactions
      • I.E. – The purchase invoice could be Company 100 in the header (for the Accounts Payable posting) but the lines could be to Company 200 if the user enters it that way
      • If you have Vendor that can cross companies – the payment would need to be separated out by Dimension each time the payments are done
        • Vendor would need to be sent multiple checks
  • User needs to be aware of which company they are entering for and that each transaction is coded correctly