Re: Multi-company to a single company

MAPICS has evolved since I wrote the IFM Book. FRx lets you have balance sheets 
for organizations within a company by plugging the debit / credit imbalance 
that results when a balance sheet's scope does not include an entire company. 
If you use FRx this way you should be aware of two things:

1. You need to identify assets and liabilities to "balance sheet" organizations 
within a company for FRx to generate these balance sheets. Doing this when you 
enter transactions is very cumbersome and time consuming. Consider using IFM's 
Apportionments function or FRx's Allocations capabilities to minimize 
transaction entry workload. Also, consider having selected assets and 
liabilities that are not identified to "balance sheet" organizations.

2. Your balance sheets will always balance. This means that you cannot rely on 
a debit / credit imbalance to tell you if your report definition needs to be 
updated because it does not include all accounts. Fortunately, you can minimize 
this problem by creating all organizational balance sheets from a single 
reporting tree and having FRx check for omitted accounts.

Except for www.tenneypubs.com and reading the MAPICS forum, I have dropped out 
of the MAPICS arena. I own www.thethreadexchange.com a web-based thread site 
with three employees and enough thread to go to the moon and back.  My 
accounting system is Quick Books, my Customer Order Management System is MIVA, 
and my inventory control system is a spreadsheet.


Bob Tenney
828-658-8670

Visit www.tenneypubs.com for books about
MAPICS and FRx
----- Original Message ----- 
From: <Chris.Neely@xxxxxxxxxx>
To: <mapics-l@xxxxxxxxxxxx>
Sent: Thursday, March 15, 2007 1:27 PM
Subject: [MAPICS-L] Multi-company to a single company

All,

I have come across the following statement concerning whether or not we 
would need to have separate financial divisions(companies) in IFM. The 
statements come from a book I have on IFM written by Bob Tenney. Can 
anyone confirm if this statement is still valid?

There are two simple tests that tell you if you must have a separate 
financial division for an organization within your business: 

Are you required to produce a balance sheet for the organization? For 
example:
 
        If you set up an organization as a separate legal entity, you will 
be required to prepare balance sheets for it. Therefore, you must record 
its activity in a       separate financial division.


Does the organization keep its books in a currency that is different from 
other organizations in your business? For example:

        Suppose you have sales offices in New York, Los Angeles, and 
Toronto. Since Canadian authorities will insist that you keep your fiscal 
records in              Canadian dollars, you must have a separate 
financial division for your Toronto sales office.



Thanks for any assistance.
_______________________________________________
This is the MAPICS ERP System Discussion (MAPICS-L) mailing list
To post a message email: MAPICS-L@xxxxxxxxxxxx
To subscribe, unsubscribe, or change list options,
visit: http://lists.midrange.com/mailman/listinfo/mapics-l
or email: MAPICS-L-request@xxxxxxxxxxxx
Before posting, please take a moment to review the archives
at http://archive.midrange.com/mapics-l.