RE: New branch in another country.
Hi user1987,
Please have a look at magic1949's response.
In addition, you can add a branch as a new business unit and use the balanced financial dimension functionality in the ledger form in GL. This ensures that you can distinguish the different branches/companies by using the business unit findim.
There are, however, quite some obstacles, such as:
1. As you don't start with a fresh system but have already recorded transactions, how do you ensure that the current balances are correctly separated among branches/companies? You would need quite some initial adjustment postings.
2. What about cash / payment related issues if e.g. a customer pays for a specific branch? Then you have to ensure that you have the business unit findim posted with the transactions, which is fine for new transactions but probably not for existing open positions.
3. I already mentioned the auditing and tax considerations that you have to make
4. Another thing to think about are intercompany transactions that you have to record in a single legal entity.
There are certainly more things to think about.
I believe that everything can be handled if you put sufficient time and effort (money) into this.
The question is whether setting up a new legal entity isn't easier and cheaper at the end of the day...
Best regards,
Ludwig
