Acumatica InterCompany


When you have several branches/subsidiaries that use the same fiscal period and the same currency, you can set them up as branches within the company. You don't need to create different companies for those branches.

Each branch has their own chart of accounts, which are mainly similar, and normally their own users/employees. However it is possible that those share some overhead costs such as marketing (advertisement, conference expenses, HR dept, etc). The branches have to agree how much each branch will contribute to those expenses. Maybe 40% and 60%. If branch A pays the total advertisement bill and is responsible for 60%, branch B needs to be charged 40%. To do this, Acumatica ERP has an InterCompany application to do InterCompany postings in the General Ledger.

The video (  mins,  ) below will illustrate this. For a full screen, click here.

2017 Enhancement: A tenant eg. Main company or Holding can have subsidiaries/companies that can have branches

Acumatica ERP versions 2018R1 or later enable your company to represent a main company or holding as a tenant, having several subsidiaries/companies, that  may have branches. This is a three level hierarchy. Of course a two level hierarchy is still possible such as a company/tenant with many branches. 

A tenant (unique COA, and unique base currency)  can have several companies. These companies will have similar chart of accounts, and the same basic currency. Of course they can have different customers, items, projects, POs, SOs, etc, and they have a different tax id.  They can be consolidated into a tenant. You need a software license for each tenant. Each company can have several branches. To do inter-branch accounting, each branch needs to have the same chart of accounts, and the same basic currency. They can have different financial periods as of version 2018R1. The picture below shows a possible hierarchy, which is used in the video below.

The video ( 9 mins, May2018 ) below will illustrate this. Setup a corporate hierarchy in Acumatica 2018 R1. Video shows how to convert 2 branches in 2017 R2 to a 3 company hierarchy in 2018 R1. Learn how to process an AP Bill across multiple companies and setup a unit set to see the reporting results..

Another Example of tenants, companies and branches

A company having several branches, that have to follow corporate approval policies for eg. giving credits to customers.

A company may have a headquarter office, and two subsidiaries or branches. The headquarters don't want the branches to give credit to customers when customers have reached a certain outstanding credit balance. Acumatica handles this very nicely as seen in the video below.

Customer Testimonials on the great feature of intercompany accounting

“Acumatica’s intercompany module has been incredible,” he says. “We have two companies, the company that holds the stock, and then another that does distribution, so there are a lot of cross transactions and the accounting was a nightmare in Sage. But it’s all integrated in Acumatica, saving us tons of time. The system does it all for you, and intercompany transfers are now a breeze.”

Click here to see the full story.

  • Kelly Products

Kelly Products, Inc. is the proud parent company of 13 individual businesses and branches that run the gamut of agribusiness, from manufacturing plant protection products to offering licensing and registration software to state departments of agriculture, regulated agencies, and consumers and from landscaping services to farm-to-table products. You can read the company’s Acumatica success story for the details on each business, but what you really need to know is that these businesses were disconnected and inefficient…until Acumatica cloud ERP entered the picture.

Click here to see the full story

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