Choosing Single vs. Multiple Sets of Books for Multi-Company Accounting
Before you set up your multi-company organization in General Ledger, determine whether you can maintain information about each company in the same set of books, or whether you need to use multiple sets of books.
You need multiple sets of books if one of the following is true:
- You have companies that require different account structures to record information about transactions and balances. For example, one company may need a 6-segment account, while another needs only a 2-segment account.
- You have companies that use different accounting calendars. For example, although companies may share fiscal year-ends, you may want a weekly calendar for one company and a monthly calendar for another.
- You have companies that require different functional currencies. Consider the business activities and reporting requirements of each company. If you must present financial statements in another country and currency, consider the accounting principles to which you must adhere. Based on such considerations, choose the appropriate functional currency for each company.
- You use multiple Oracle Applications instances for your companies.
Note: If you use multiple Applications instances, discuss your consolidation needs with an Oracle consultant.
See Also
Accounting for Multiple Companies with a Single Set of Books
Accounting for Multiple Companies with Multiple Sets of Books
