Intercompany Transactions in Acumatica
Posted on: November 19, 2021 | By: Jim Bertler | Acumatica
With such a massive global marketplace, intercompany transactions between a business and a subsequent entity are common practices. Maintaining constant and accurate records of intercompany transactions is crucial because it provides insight on the performance of the company as well as the value being generated from each transaction. Moreover, financials become more organized and there is less room for human error through double counting some transactions across multiple entities in the company. It’s important to stay vigilant with this because it can have a large impact on your business’ taxes.
Keeping track of these transactions can be complicated and time consuming, which is why it’s important for companies to employ a comprehensive ERP software that can facilitate this documentation. Acumatica has an Advanced Intercompany Accounting (AIS) solution that is designed specifically for this purpose.
What AIS Does
AIS is a useful tool because it automates a myriad of data adjustments, such as financial reporting, inventory transfers, and inter-company transfers throughout all the entities within a corporation because of the integration of the cloud to the software. Additionally, users can share non-financial information that is relevant between the different groups, generating an overall sense of connectedness for the organization.
Sales and Inventory
Management of sales and inventory becomes much less complex through the implementation of this solution because the accounting team is centralized, allowing all sales and invoices to be processed between various companies within one system.
Financials
Users are able to see profitability reports on financials that are separated by company, while also having centralized cash management, vendor payments, and customer payments. Users can combine transactions that overlap different companies as well as separate transactions that are company-specific.
Intercompany Reporting
Because of the connectivity AIS provides corporations, users can send customized reports to as many companies as desired. Users have a lot of oversight with this and can filter out companies not relevant to the reports as well.
Next Steps
These are just a few of the possibilities with Acumatica’s robust solution when it comes to increasing connectivity and efficiency of companies. If you are interested in exploring this topic further, or seeing how Acumatica can benefit your specific company, contact an expert at Logan Consulting today!