Season 2, Episode 3 : How does Business Central simplify intercompany transactions and automate financial consolidation for clients managing multiple entities?

‍

How do clients managing accounts for multiple companies ensure seamless operations? Are they dealing with the challenges of using multiple systems, and do their subsidiary systems communicate effectively? Are these processes optimised for efficiency? Well Business Central’s consolidation and intercompany transaction features ensure that businesses with multiple organisations can view financial activity from a singular platform and subsidiaries can work seamlessly with their sister companies with auto transaction capabilities. I’m Laura at Creative and this is Dynamics Unwrapped…

In our previous series, we briefly touched upon how Business Central benefits growing organizations with multiple companies by consolidating all financial activities into a unified system. But let's delve deeper into how this works. Notably, Business Central accommodates up to 300 companies per tenant, and there's no limit to the number of tenants an organisation can have. This flexibility is crucial for organizations with a global presence, allowing them to localise tenants across different data centers worldwide.  

Also, parent companies can effortlessly consolidate business units within the same tenant and across other tenants they own at their convenience and they have the power to choose the percentage ownership they hold in each subsidiary. Importantly, the parent company can consolidate subsidiaries with different chart of accounts, eliminating the need for anyone to adjust theirs for the sake of consolidation.  

But how does Business Central foster collaboration among subsidiaries? Well, with intercompany transactions, a standard feature in the system, organisations can set up sister companies as both customers and vendors. With the auto transaction feature activated, businesses can automate transactions between their entities, saving significant time that would otherwise be spent on manual document creation. Also, it's important to highlight that the parent company can run eliminations before consolidation to prevent financial data duplication.  

So, Business Central is intuitive and revolutionary for organizations with multiple companies, especially those operating internationally with diverse localisation needs. Subsidiaries can collaborate effortlessly, efficiency is maximised, and parent companies gain a comprehensive, real-time view of the entire organisation through a unified platform. So are you interested in hearing more about the business central features that elevate business processes, then stay tuned for the next video…

‍

‍