Top 7 problems solved by Infor SunSystems Cloud in Not for Profit.
Problem #6: Difficult Multi-Entity Consolidation
This is the sixth in our series of blogs highlighting seven common problems addressed by Infor SunSystems Cloud in Not-for-Profit organisations. In this blog, we focus on the difficulties around multi-entity consolidation.
Structural Complexity
Charities are often structurally complex and there are several reasons for this:
Multiple Legal Entities
Many own separate trading subsidiaries that carry out activities that aren’t directly charitable. A common example is operating retail shops.
Some of the larger charities also operate internationally. For these organisations there may be multiple overseas entities in addition to a UK charity. Each of these entities is likely to have their own reporting and compliance needs.
Regional or Local Branch Structures
Some charities operate extensive branch and regional structures. Churches and hospices are often structured in this way. Each branch may have its own accounts, budgets and fund balances.
Mergers
Charities formed because of a merger sometimes retain legal entities that existed before the merger:
- The original charity’s legacy must be preserved
- Endowments are legally tied to a specific entity
- Governance arrangements differ
The problem
The problem is simply that many finance systems struggle with the kind of complexity described above. Perhaps they were originally designed for one entity, and one Chart of Accounts. Perhaps they require additional modules. Whatever the reason, reporting is often heavily dependent on workarounds and manual processes, typically involving Excel.
How SunSystems Cloud simplifies multi-entity consolidation
SunSystems has all the flexibility you need to handle the complexities of not for profit. No more workarounds and manual processes.
In SunSystems you can maintain an unlimited numbers of entities, each with their own base and group reporting currencies. One of these entities can be configured to act as a consolidation entity from which you report group-level information. This scenario is ideally suited to organisations where each legal entity requires a different Chart of Accounts structure.
Alternatively, multi-entity accounting can be implemented by deploying a single entity or business unit in which company, branch or entity is simply an Analysis Dimension. In this scenario, all entities share a common chart of accounts. As transactions are entered, they are simply tagged as belonging to one entity or another using the appropriate Analysis Dimension.
Take the Next Step
These are just some of the ways in which SunSystems can help your organisation. To learn more, visit the not for profit sector page on this website. Alternatively, download a copy of our SunSystems Cloud Beginner’s Guide – Not for Profit.
In the next blog in this series, we shift focus to poor outcome measurement.
By Jon Isherwood