SAP Business One Financial Setup Options | Segmented Chart of Accounts, Cost Centers and Branches in SAP Business One 9.1
In this video, Aether Consulting Senior Implementation Consultant Ellen Maier shows us the capability of SAP Business One for companies that need to break out their financials by company/division/branch and just as easily view them at a consolidated level in a single database. Ellen provides implementation tips by diving into the application to show segmented chart of accounts, cost centers, and branches in SAP Business One 9.1.
Link to video: https://youtu.be/Og731bL4qAA
You can also run multiple companies in SAP Business One, which would have a separate database for each company. Then you would use other methods to consolidate the companies into a single financial statement. But this presentation focuses only on financial setup options when using a single database.
– For companies that purchased SAP Business One but have not implemented yet
– The business has multiple companies/divisions/branches that you need to manage financially in the software and want to do so in one database
– The business wants to produce consolidated financial statements
– The business wants to drill into the detail of revenues and expenses by branch, division, and department
Segmented Chart of Accounts
– Determine account segments based on business processes and financial reporting needs
– Use the 4 default account segments, or define up to 10
– Segments can represent divisions, departments, regions, lines of business, entities, branches etc.
– Once created, you cannot change the length or type of a segment later on
– Prevalent financial method used in Europe
– Reduces the number of general ledger accounts that need to be maintained
– Use dimensions to group cost centers together
– Use distribution rules to allocate direct and indirect costs and revenues to cost centers
– Create sales and purchasing transaction for a dedicated branch
– Reporting by branch, e.g. profit and loss statement per branch
– Warehouse management per branch
– Restrict usage of business partners by branch
– All financial transactions will be separated by branches
SAP Business One brings incredible power and flexibility to companies that need to easily break out their financials by company/division/branch, etc., and just as easily view them at a consolidated level. About Aether Consulting: Aether is an SAP Business One value-added reseller in Goodrich, Michigan. We sell, install, implement, train and support our customers on SAP Business One.
I have a quick question related to multiple branches. I know documents journal entries etc. can be limited by the user assignment of the branch. My question is does this also restrict things such as financial reporting. I know that the you can report by branches, but if a user belongs to a particular branch can they be restricted to only view financial reports from that branch?
Ty, We haven't tested it but we don't believe if a user belongs to a particular branch that they can only view financial reports from their branch. The way branches work in 9.1 it will limit the entry of a specific document or journal to only the branch(es) that a user is assigned to, but you can still view all documents and data.
Very interesting video. Thanks for sharing.
I have a question regarding multiple charts of accounts. I use to work in R/3 where we can combine the utilisation of three chart of accounts (Operational; National or Group COA) based on client requirements.
If I have to define more than one COA because of multiple companies/countries specifics requirements, could you tell me how to handle this in B1?
You can have multiple companies in one instance of SAP Business One. Each company would have their own database and separate chart of accounts. You could use SAP tools such as Intercompany, or 3rd party tools to create a consolidated financial statement for all companies.
Ok I see.
Thank you for you reply.