Enterprise Unit Concept

[ERPBAAN]

Hi,
We are planning to have a multi finance single logisitc set-up in LN. We would be using entrprise unit (EU) concept to map operation of our different division which are all unrelated activities. So each of our division would be represented by a separate EU.

Can we set parameter related to various modules of LN for each enterprise unit based on division's operations.

Thanks
Rudolph D

[Kaibou]

There is no such parameter setup so Entities are linked to EU´s which has got some restrictions of course. One restriction may be that on a Sales Order you can only use one Entity (SD) thus only on EU. So in case you do have Sales Orders distributed by various EU´s that will not work. The usage of EU´s as division will only work if you can make the clear separation by entity (= EU) which I guess will not work. One alternative could be to use a financial dimension and link it to an item code in integration (of course this only works if you item codes can be directly linked to a division). There a many way´s of tackling that issue but I doubt it will work by using EU´s.

Rgds - Kai

[Kaibou]

Hello ERPBAAN,

if you do raise a question on a demandig topic never respond to it even though you stroll along in other areas you should either set an end to the topic or just not start it. Please be aware that people like to help but not getting any feedback in return certainly puts off people to participate.

Thanks - Kai

[ERPBAAN]

Hi Kai,
Thanks for your first mail on the explanation, I couldn't revert as I was busy with some important issues and couldn't logged in to baanboard.
I do understand the advantage of responding to the reply.
Do you have any document stating the benefits of Enterprise unit.

Thanks
Rudolph D.

[Kaibou]

Hello Rudolph,

you need to specify your requirements and then I will try to help on that.

Regards - Kai

[ERPBAAN]

Hi Kaibou,
Thanks for your kind gesture. I am not very familiar and comfortable with the Enterprise unit concept, so trying to find as much as I can. I am looking for a document stating the Pros and Cons of having Enterprise unit to address multi company concept.
In my company, we are planning to go for ERP Ln and have heard about the EU who can handle a lot about Multi company set-up.
We are having different unit which are the part of holding company. Some of the units transfer inventory to each other. These transfers are not sales and purchases.
We are also not sure about configuring our future set-up as to Single logisitcs-Multifinace company or Multilogistics-Multifinance Company.

Any advise would be appreciated.

Regards
Rudolph D

[Kaibou]

Hello Rudolph,

the EU is a good way of handling that sort of scenario that you are thinking of but it is only one option out of many. The EU in a SL/MF vs. ML/MF environment does not make a difference so that should not be the key factor for that decision. ML or SL has got other implication on such things as enterprise planning and on Standard Costing. In other words - you need to way up your criterias in favour of one or the other setup regardless the EU.

Regards - Kai

[ERPBAAN]

Hello Kai,
Thanks for your time and explanation on this, Is it possible to elaborate the implication of Standard costing if we use EU concept for SL-MF or ML-MF set-up.
Do you have any document for the same?

Thanks
Rudolph D.

[Kaibou]

Hello Rudolph,

I cannot hand out documents but do advise you to carefully elaborate on the 2 scenarios that you have in mind. The EU concept does not have any affect on the standard costing at all but standard costing in SL means that an item can only have one Standard BOM and one Standard Routing for CP calculation throughout the multisite environment. So if your products do have more or less identical BOM and ROU then this could be the option (still you could work with surcharges + / - to cope with that implication but that is a tricky thing). An ML scenario of course does provide Standard Costs per company. This of course is only one aspect out of so many others which cannot be discussed via Baanboard unfortunately.

Regards - Kai

[ERPBAAN]

Hello Kaibou,
Thanks a lot for the explanation which has given me insight to focus on our requirement and then design the system accordingly.
Meanwhile we are discussing with a Infor PSO regarding the same.

Regards
Rudolph D

[katiekelley]

Costing is done at the item master level and the need for different costs or methods is one reason for using multiple logistic companies. It will also keep costing data totals across all together and activities in each locations will be included in the average purchase price and other data. I teach the multi site class and this is a main reason for going multi logistic multi finance. The EU works to get things to the right finance company since a purchase office or sales office is assigned to an EU but if you need more detail on the logistic side it may need to be in different logistic companies. Also EU is only baan 5 and above and if you are coming from 4c4 the data migration if you currently have multi/multi is going to be much harder- just something to think about.

[Kaibou]

Different logistical companies is only needed if the same products are manufactured at different locations (companies) thus having to have different standard costs. Unfortunately standard costs are not stored on EU level which is the real stumbling block here. One has to be aware that multi log. has some restrictions on certain areas such as lack of triangular invoicing, no TP across companies etc. Always cautiously weigh up the pros and cons in either scenario...