D365 for Finance for a Holding company

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Posted on by DNC

Hello,

first of all, for those of you who doesn’t know it: A holding company is basically the parent company which possess shares of other companies. That’s basically it. Holding company - Wikipedia

One of our customers possess a Holding company and is asking what he has to look for if he wants to implement Dynamics 365 for Finance. So, the questions are:

what kind of useful features or “special stuffs” Dynamics 365 for Finance has if a Holding company wants to implement this ERP system.
are there any important features which I must consider during the implementation of Dynamics 365 Finance for the Holding company?

I could not find any hints regarding these two questions in the Microsoft docs. At least, nothing related to Holding companies. I am able to depict them in the organizational hierarchy which is important for reporting purposes. But what else? The consolidation module could be interesting...?

I mean the Holding – or let us say the parent company – possess only shares of other companies. This is the only information I've got.

Does anybody has some useful information for me?

Best regards
DNC

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Jess Wells 10 on at

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RE: D365 for Finance for a Holding company

We have a similar question. But I can confirm that the client does not plan to process ANY transactions in D365 for the holding company. The parent company (which sits above the holding company) is where they will process centralized payments, they have a separate consolidation and elimination company. The question is, would there be any reason/value in adding the holding company in D365? The only thing I can think of is for reporting purposes but you can easily build a reporting tree in MR to have the child companies roll up into the holding company which then rolls up in the parent company along with about 60+ other LEs.

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Ludwig Reinhard Microsoft Employee on at

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RE: D365 for Finance for a Holding company

Hi DNC,

There is not much available on MS docs.

I entered you some links below that you can use as a starting point.

Org Hierarchies

docs.microsoft.com/.../plan-organizational-hierarchy

Centralized payments

docs.microsoft.com/.../centralized-payments-accounts-payable

Centralization of purchasing

docs.microsoft.com/.../setting-up-and-maintaining-procurement-and-sourcing

Best regards,

Ludwig

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DNC on at

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RE: D365 for Finance for a Holding company

Hi André,

their Holding structure is new and unfortunately - as far as I know - they have not implemented it yet in their ERP system.

This is why I asked the community for help regarding material. :)

Best regards

DNC

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André Arnaud de Cal... 297,572 Super User 2025 Season 2 on at

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RE: D365 for Finance for a Holding company

HI DNC,

As they are already using AX2012, why not asking them what exact functionality they have in use now for the holding company and if they have specific customizations? I do assume they use the holding company already today in AX2012.

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DNC on at

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RE: D365 for Finance for a Holding company

Hi Ludwig,

I want the customer to show me what they have and let them tell me what they want/expect from D365 for Finance. At this point, I agree with you Ludwig.

But I have to know crucial setups for a Holding company in D365 in order to know what I could ask during the session.

I do not want to know every set up for a Holding company in D365. This is really too much. I am asking only for the main / crucial part.

Imagine someone is showing you the Fixed asset module in another ERP system than D365 for F&O and you do not know how the Fixed asset module is structured in D365. How can you know you are asking the potential customer the right questions? Do you get my point? ;)

I do not want to prepare questions. Rather, I have to be sure I am asking the right questions during the session. And for this I need to know specific features for Holding companies in D365 for Finance.

I am just asking for some MS documents where I can get more information. Or non MS documents related to Holding companies in D365.

Best regards

DNC

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Ludwig Reinhard Microsoft Employee on at

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RE: D365 for Finance for a Holding company

Hi DNC,

Rather than trying to prepare some theoretical questions what can be done in a holding structured company, why don't you let the customer define and drive what they are looking for.

The problem that I see here is that you could prepare a lot and then have to forget about 90% of the things you prepared because it is not relevant for your customer.

Not sure if you understand my argument and whether it makes sense to you :-)

Best regards,

Ludwig

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DNC on at

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RE: D365 for Finance for a Holding company

Hi Ludwig and André,

the customer will give me only more information during our conversation in a few days. The only thing I know is that the customer wants to switch from AX 2012 to D365. So, I have to prepare questions if he wants his Holding company to use D365. I know that the parent company possess assets from subsidiaries. More information will be given to me later.

Nevertheless, is it possible to give me some information? Things I will need for sure (or very likely) regardless of the information I have given to you. For example what Ludwig has written earlier, regarding centralized customer and vendor payments that the parent can execute for the child companies? If you can give me more information's like this - perhaps with MS docs - that would be great.

Thanks in advance

DNC

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André Arnaud de Cal... 297,572 Super User 2025 Season 2 on at

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RE: D365 for Finance for a Holding company

Hi DNC,

In addition to the reply from Ludwig: Holding companies are sometimes just financial companies, but can also have activities like owning assets and rent out to subsidiaries. If it is just financial, you can use Dynamics 365 without doubt. Can you provide details if there are some more specific activities which needs to be administered in this holding company?

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Ludwig Reinhard Microsoft Employee on at

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RE: D365 for Finance for a Holding company

Hi DNC,

D365FO ships with things such as centralized customer and vendor payments that the parent can execute for the child companies.

There are additional things that can be executed from the holding company.

This depends on the requirements that you have.

Can you please share some of them?

This makes it easier to help you with some detailed information/feedback.

Many thanks,

Ludwig

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