Acumatica gives you flexibility in setting up your organization structure from a simplest structure to a more complex multi-company structure using Tenants, Companies and Branches. However, this flexibility creates some confusion for some as to how to choose between setting a multi-company environment as companies or as branches. Should I set my multicompany environment as Companies or Branches? which is the right choice to make? The answer is either will work however, a good understanding of the design philosophy and a couple definitions will make the choice easier.

Acumatica organizational design is set up in a hierarchical way. You first log into an instance then a Tenant, and from a tenant unto a company, from a company unto branches.

Acumatica Multicompany Structure

In Acumatica ERP, a Company represents a legal entity, an independent balance sheet, with EIN number, and a separate tax reporting.

A Branch by contrast can be a division, a separate location, a separate office or a profit center or a point of sale capable of performance reporting.

An organization may consist of one company or multiple companies. A company may have no branches, or it may consist of multiple branches, each being a separate office, a division, or a location. A branch does not need to have its own EIN but a company does.

However, due to Acumatica’s flexibility, a branch can be construed as a company therefore you can set up your multi-company structure in the following manner:

  • Company Without Branches: A company with this type cannot have any branches.
  • Company With Branches Not Requiring Balancing: A company with this type must have at least one branch. If multiple branches of the company are involved in a transaction, balancing entries are not required.
  • Company With Branches Requiring Balancing: A company with this type must have at least one branch. If multiple branches of the company are involved in a transaction, balancing entries are required.  Multi-Branch Support and Inter-Branch Transactions features must be enabled

In Acumatica you have many options so if you need further assistance, schedule a consultation with the MIBAR team.

From Bricks to Clicks—One Company’s Journey from “The Best NYC Paper Store” to International eCommerce Player4/22 Webinar

New York is great, but for now-CEO of JAM Paper and Envelope Andrew Jacobs, it was only the beginning. Brought on as the Director of eCommerce at JAM in 2005, he guided the company from a bricks-and-mortar chain known as “The Best NYC Paper Store” to an Internet Retailer Top 1000 ecommerce player and key player on online marketplaces. But as with any transformation as fast and significant as JAM’s, there were bound to be a few growing pains along the way.