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Configuring Branches without balancing entries vs. no branches at all

  • 9 July 2022
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Userlevel 6
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We are a company with multiple branch locations, some in different states. Most of the branches all perform the same selling functions, and we do not separately report financials for each branch (although we do some rollup reporting on each branches financial performance).

There is a question on whether we should be using branches at all. For example, we could structure the software so that there is a single company with multiple warehouses (i.e. Seatle, Portland, etc), but no distinction between branches in the software.

This would allow us to do single-step transfers between warehouses, for example. However, there is a question in my mind of whether this will hamper us in the future in terms of shipping material between branches (will the software be able to understand that the branch warehouses are geographically distinct if they are not attached to separate branches)?

Does anyone have experience with doing this one way versus ther other? If the only advantage of distrinct branches is limiting visibility to certain financial information to certain branches, I don’t think we care too much about that (we can handle this in other ways). However, I am curious what other implications there could be to having a single branch with multiple warehouses in different states….

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Best answer by vkumar 10 July 2022, 08:00

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Userlevel 7
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Hi @rosenjon 

If your license includes ‘Inter company/branch transaction’ option, it may be better to use branches in your scenario, with Company set as ‘with branches not  requiring balancing’.

Since you have mentioned the following :

“ although we do some rollup reporting on each branches financial performance “

If you have specific alternative to get above reporting without branches, then you may avoid creating branches.

Hope this helps,

Regards,

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