Acumatica ERP supports multibranch functionality and provides multiple basic one-level and two-level models, outlined in the sections below, for implementing the most typical organizational structures. For more complex organizations, such models may be combined to implement any structure.
Choosing the model (or combination of models) that suits your organization best is an important decision that must be made before you start implementing Acumatica ERP.
With Model 1, shown in the illustration below, the organization, which is a single legal entity, consists of two branches (or locations), each branch representing a company office. Transactions are posted to these branches.
You need to specify the additional branch as the consolidating branch for the posting ledger by using the Consolidation Branch column on the Ledgers (GL201500) form. The consolidating branch is used only in Form 1099-MISC and tax reports to represent the legal entity. No transactions are posted to the consolidating branch.
To be able to use automatic generation of interbranch balancing entries for documents that involve multiple branches, you need to enable the Inter-Branch Transactions feature on the Enable/Disable Features (CS100000) form, configure the posting ledger by selecting the check box in the Branch Accounting column for this ledger on the Ledgers (GL201500) form, and define the interbranch account mapping by using the Inter-Branch Account Mapping (GL101010) form.
If the Branch Accounting check box is cleared for the ledger, you still can make transactions between the branches (for example, transfer fixed assets from one branch to another), but the system does not create interbranch balancing entries. The resulting batch remains unbalanced in each of the smaller branches, but the batch is balanced in the ledger that is assigned to the consolidating branch. In this case, the branches are not independent, and separate balance sheet reports cannot be prepared.
In Model 2, illustrated below, the organization has a number of branches with a certain level of autonomy, with each branch being a legal entity. The organization and its branches share most of the vendors and customers but keep some of the trade partners as associated with a specific branch. Each branch keeps records of its own and has an accountant or accounting staff. The profitability of each branch can be equally important.
A certain level of independence requires that some of branches have their own General Ledger accounts that cannot be used by another branch. You can use restriction groups to assign selected General Ledger accounts and subaccounts to a specific branch for use by this branch only.
An organization might include a number of related legal entities with complex structures. Each legal entity has its headquarters and locations or smaller branches that are not separate legal entities. In this case, each autonomous multilocation entity keeps its own records and performs all accounting procedures.
In Acumatica ERP, such an organization can be configured as a Model 3, which combines Model 1 and Model 2, functioning within one Company ID. (See the following illustration.) Each autonomous branch has its headquarters and locations (or smaller branches that are not separate legal entities) configured as branches. Each autonomous multilocation branch records its operations to a separate ledger with a headquarters branch specified as the consolidation branch for the ledger.
When the interbranch transactions occur between any branches with different posting ledgers, balancing interbranch transactions will be generated automatically. You should create interbranch receivable and payable accounts in each ledger and specify the rules to be used by the system for generating balancing transactions by using the Inter-Branch Account Mapping (GL101010) form.
Small and midsize businesses sooner or later may face the problem of growth. They can grow by mergers or by creating local subsidiaries or branches in new regions or countries. Due to their locations, the organization subsidiaries use different base (functional) currency and should meet different reporting requirements (including non-matching financial years); their customers and vendors are not shared. For historical reasons, the organization subsidiaries may have different structures of accounts and subaccounts.
In Acumatica ERP, such subsidiaries can have separate tenant accounts with different Company IDs. The simplest structure is shown by Model 4, illustrated below. Although technically the parent organization and its subsidiaries may keep their data in the same database, they may have different base currencies, different financial year settings, and separate lists of trade partners. Such subsidiaries even can be hosted on different websites.
If interbranch transactions take place, they should be eliminated manually during period-end or year-end routine procedures.