Two companies, small subset set of vendors...

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Posted on by Seneschal

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Hi, using Dynamics GP 10.0, what is the best way to set up a second company/subsidiary with a small subset of the vendors of the first company? We don't need the entire universe of vendors but just a small (~12 vendors) subset. Is the best way to just manually re-key in the vendor cards for these? I'm guessing that the vendor files will have to exist separately and will diverge once set up. We are planning to roll the subsidiary into the main company with intercompany eliminations for reporting purposes.

Thanks.

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Seneschal 370 on at

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Re: Re: Re: Re: Re: Two companies, small subset set of vendors...

Thanks, you are correct, the second company is a wholly owned subsidiary and pretty small and just starting out, and that is what we are doing. (We are checking the intercompany box to book in the future). However, this is how our IT folks told us to do it so we can get the history of Jan-Jun 2010 into the books (to record the AP transactions). I think we will end up re-keying all the AP vendors into the system for the 2nd company to get them in.
L Vail 65,271 on at

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Re: Re: Re: Re: Two companies, small subset set of vendors...

Hi,

I'll chime in on this. Binary Stream's product is wonderful! - but boy, what a setup. I think it's pretty pricey too. If you only have 12 vendors, I'm thinking the 2nd company isn't that big. I may be way off on that. Have you considered using Inter company transactions? I have clients that have one company pay the bills, generate the due/to due/from entry and then sweep the amount due out of the subsidiary's account.

Forms 1099 won't be a problem because the parent paid the vendor and the parent would file the Form 1099. So long as the IRS gets their document, I think they will probably be happy.

Just another idea.

Kind regards,

Leslie
Community Member Microsoft Employee on at

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Re: Re: Re: Two companies, small subset set of vendors...

If the second company is a subsidiary of the first then you might run into 1099 issues if you are in the United States. Tax law will require you to combine the vendor payments from both companies when determining the 1099 amounts if both companies have the same federal tax id number. Next year the 1099 requirements will bring in many many more vendors than previously.

If the first company is doing all the payments then I do not think you need any vendors in the second company. You can use intercompany relationships to charge the cost to the second company but keep all the vendor information in the first company. This makes searching payment history and testing for duplicates much easier.
Mariano Gomez 26,225 on at

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Re: Two companies, small subset set of vendors...

You can also create a template company with the entire vendor master, then use the Professional Services Tools Library (PSTL) to replicate the vendors you want from the template company to the production companies. You can think of this as a centralized vendor maintenance place, however you will have to do your own reports across both companies to get things like consolidated vendor balances.
Frank Hamelly | MVP... 4,029 Super User 2024 Season 2 on at

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Re: Re: Re: Two companies, small subset set of vendors...

Nope - the two companies' vendor masters are totally separate.
Seneschal 370 on at

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Re: Re: Two companies, small subset set of vendors...

Thanks. Can two companies share the same vendor list? Because only the first company will be writing the checks and paying.
I guess if not the simplest thing is to just add the 12 vendors to the second company.
Frank Hamelly | MVP... 4,029 Super User 2024 Season 2 on at

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Re: Two companies, small subset set of vendors...

Well, the best way to do this is to purchase the Multi Facility Processing module from Binary Stream. You can't have two sets of vendors in GP unless you setup two separate companies (databases).