Alternative C: PA Implementation Options Table
In Alternative C, Company XYZ includes Los Angeles, San Francisco, and New York in one operating unit (US). The start organization is the business group, BG1. Items that differ from Alternative B are shown in bold type:
|
| US
| US
| USD
| BG1
| BG1
| Weekly
|
| London
| UK
| GBP
| BG1
| BG1
| Weekly
|
Alternative C: PA Implementation Options Diagram
Alternative C: HR Organizations, Labor Resources, and Projects
Compared with Example A and Alternative B, implementing Alternative C above will give Company XYZ:
- The same flexibility in sharing resources as in Alternative B.
- The same ability to share resources internationally as in Alternative B.
- No restrictions on associating any of the Project/Task Organizations to any project.
- Less autonomy in the US operating units (Los Angeles, San Francisco, and New York) but better reporting and processing at the US level:
- Less flexibility in processing. Project costing and billing are done centrally for the US rather than by each of the three US operating units as in Example A and Alternative B.
- Through AutoAccounting, you will still be able to maintain multiple Balancing Entities in GL and take advantage of the GL intercompany changes within the US entity. This will enable you to produce separate Balance Sheets for Los Angeles, San Francisco and New York.
- Less data segregation and access restriction. For example, revenue and liability information are interfaced into one AR and one AP. Also, with a US responsibility, any employee in BG1 can charge expenses to a US project. Similarly, any organization in BG1 can be an Expenditure Organization for a US project.
- More work would be required to produce reports at the Los Angeles, San Francisco and New York level in the sub-ledgers.
- Less system administration would be required. Setup is performed once for the US operating unit rather than three times (for Los Angeles, San Francisco, and New York).
- US standards, such as Project Type, Project Templates, Rates, and Accounting Rules are easier to enforce.
- Agreements can fund any of the projects in the US. In Alternative B, you need separate agreements for PROJ-LA, PROJ-SF, and PROJ-NY.
