Multi Org Vs Single Org on the accounting purpose

org difference

1. ennVee Solutions Pvt. Ltd. Multi org Vs Single Org Jan 2024

2. Business Needs Components plant has 4 distinct product lines under one shop floor Segregation and easy identification of WIP Jobs across all product lines Handling of raw material issue to product lines Separate reporting for each of the product lines Component level P&L Common Functions across product lines Centralized purchasing / receiving for all product lines Sales Order entry and booking Common Planners Centralized stores for all product lines Financials (AR / AP )

3. Multiple MRP Plan need to be defined against the different forecast to single demand plan Multiple MRP Plan Need to be run for each product line Productivity of the Resources and system will be reduced Absorbs more manpower to do the basics tasks. Need to create separate sales orders for one customer Maintenance of the Inventory Organization would absorb more resource and time-Consuming in order to perform Month end Process and other activities Reconciliation process for the Inventory are not so effective for multi organization More physical location need to be created for the multi organization and also will have impact on the TAX part for the items during the Finished good transfer transfer . Cons of Multiple Organizations

4. Can be segregated component wise. Will have separate Inventory Org for each and every item. P & L can be handled separately Pros

5. Items can be handled independently by using the functionality of defaulting the item to the sub inventories Defaulting Items to sub- inventory able to receive, storage WIP completion sales order, shipment to default to specified sub inventory Resources can be allocated as per the requirement of the components Job order number can be unique across the respective product category Maintenance of the inventory and month end process are easier, cost effective and require minimal resources with high performances Procure to Pay process is ease and effectively works compared to the Multi organization Profit and loss can be handled based on the Product category Resolution

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