Re: Multi-company to a single company

["Vanessa King" <VanessaKing@xxxxxxxxx>]

Hi Chris,

Financial divisions should be set up for each legal entity. There are some
other ways to get around the balance sheet reporting if that's the only
issue. The statement regarding the reporting currency is correct. You should
have a different financial division for each reporting currency (which would
mean that they are separate legal entities anyway).

Feel free to contact me offline if you need further information.

Best regards,
Vanessa

VanessaKing@xxxxxxxxx


-----Original Message-----
From: mapics-l-bounces@xxxxxxxxxxxx [mailto:mapics-l-bounces@xxxxxxxxxxxx]
On Behalf Of Chris.Neely@xxxxxxxxxx
Sent: Thursday, March 15, 2007 2:27 PM
To: mapics-l@xxxxxxxxxxxx
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.
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