SAP InterCompany vs. Multiple Branches

If you are part of a growing organization, that controls more than one legal business entity, and you seem to face the challenge of how to share data and perform intercompany transactions between partner companies, this blog post explains the difference between possible solutions, in detail SAP InterCompany vs. Multiple Branches.

SAP InterCompany vs. Multiple Branches

In the following chart, you can see the Intercompany Portfolio for SAP Business One and the Schematic Solution Positioning:

SAP InterCompany - Multiple Branches

The best fit of complex requirements ist SAP InterCompany Integration Solution. Customer-Specific Customization / Development or Solutions by Software Solution Partners are always possible and may suit accordingly. First you should look into Multiple Branches as it is part of the SAP Business One Core.

SAP Business One – Multiple Branches

As previously written, it is part of the SAP Business One core offering, therefore you should discuss the following topics:

  • Do you have one single entity and you want to automate simple business processes in the same database?
  • Do you want to divide or separate one legal entity into different business units, cost centers or profit centers in the same database?
  • Do you want to increases transparency and reporting needs to be done by the units?

Technical details: Does not run on B1iF platform and does not require any additional licenses.

Comparison of functionalities

SAP InterCompany Integration Solution has certain advantages when your company operates with independent legal entities in different countries. With separate chart of accounts, localizations and different authorization concepts:

Comparison of Functionalities - Part 1

SAP InterCompany Integration Solution suits better when documents shall exchanged automatically within total business group. Credit limit check, tax reporting or inventory valuation can be set up independently:

Comparison of Functionalities - Part 2

Consulting Support is recommendable

This entire topic is quite complex, especially because the differences can be found deep in detail. Our experience shows that a requirement workshop is mandatory to gain an holistic view of your entire business transactions with your collaborating business units. Feel free to drop us a line to get more into detail.