Holdings are often among the most dynamic economic entities. This leads to a number of specific requirements in the organization of work and coordination between subsidiaries. Parent companies need advanced synchrony in inter-subsidiary operations planning and in consolidating financial and accounting data.
EnterpriseOne® offers considerable advantages related to the accountability of several related entities.
The companies in a holding can share nomenclatures – products and product groups, definitions of companies, chart of accounts, warehouses, etc. At the same time, it is possible that nomenclature positions be defined for each own company. This flexibility allows to reduce the cost of implementing and maintaining nomenclatures.
Intercompany operation syncing
When subsidiaries sell to each other, EnterpriseOne® automatically generates the necessary documents. For example, if a daughter company sells a product to another entity from the holding, the purchase at the buyer’s side will be created and maintained synchronized with the sale at the seller’s side. Thus, less effort will be necessary for inputting data, and the risk of errors will be eliminated.
Moreover, intercompany operation syncing leads to another plus: total planning.
Planning stock and production capacities can be done both individually for each subsidiary, as well as totally for the entire holding through syncing planned future operations. Total planing allows for complete automation of the planning process, regardless of the number of daughter companies dealing with the stock or the location of production facilities.
Usually, “consolidation” means “consolidating financial and accounting data”. EnterpriseOne® provides this feature and in addition automates it along with intercompany eliminations – a common issue in accounting consolidation.
Furthermore, EnterpriseOne® offers other types of consolidation which are very important from an operational point of view. It can consolidate almost all reports, which, along with the fact that the system supports shared nomenclatures, facilitates the total monitoring of counterparty obligations, stock and fund availability, sales, etc.