2 Companies but 1 Epicor Company

I am looking for ways to run 2 companies within 1 Epicor company.
I have set up the Multi Company Direct Process and operationally it works.
The whole process however is far too slow for our company to operate.

We would like to be able to put Sales Orders on the system in 1 company but the invoices sent from and paid to another. and then run financial reports on the back of it for specific customers.

I had a thought about multi books, Separate GL, maybe even Multi Site (Less inclined to look at this as we hold no stock at the 2nd company as it physically doesn’t exist) but i am not sure if there are any good methods to do this.

Since Epicor is so rigid in the company context, I have to ask do these 2 companies have different EIN #s? (Legally, two companies in the eyes of the IRS, requiring separate ledgers?)

If they are two legally separate companies, I believe the GAP rules will prevent you from doing anything but separate Epicor companies, else you may not pass an audit. But I can’t see who you coudl make the process any simpler since you will effectively never have any revenue in one company, and never have and COGS/COGM expense to offset revenue in the other company. Not sure how you would do the books like that, unless you simply ‘flushed’ everything from one company’s GL to the other company (eg, ownership, or management fees, or something)

If they are not two legal entities, then could you just make it look like two companies, by using a different company name/logo/contact/remittance info on the customer facing forms? This may still be a problem with the banking side.

This sounds a bit strange really, and I’m not sure I’m the right person for you to take advice from and run with it - I’m not a controller, or accountant.

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@MikeGross It is a strange request i understand but we are trying to run 2 companies out of 1 location and we don’t have enough coming through one company to warrant a specific Dept for it.

It is 2 legal companies unfortunately, but i did have another idea which may work if you could possibly clarify if I’m right.

Sales Order placed on UK Company
Irish Customer has Alt Bill To as Irish Company

Irish Company gets the Invoice with no VAT - Export Docs Created at this Stage.

(May be able to Automate this in the future) Misc Invoice Manually Raised on Irish Company on the same Irish Customer Account as per the Invoice to the Irish Company in the previous step
Irish Customer gets the Invoice with 23% VAT and this Invoice can be paid to the Irish Company

Misc Payment Made to UK Company based on the Invoice sent from UK Company (Dont know how possible this is)

On the back of this we have financial reports and separate COA. This is probably the easiest to implement but it does moves the manual slog to the Finance Department.

On the basis of Customer Returns we create them in the UK Company (Irish Customer Alt Bill To is still the Irish Comapny) which would credit the Irish Company
then the Finance Dept can then raise a Credit to the Irish Customer through the Irish Comapny (not sure how possible this is)

You are likely going to create more heartache and trouble trying to put them under the same technical company. If they are separate legal entities you will need 2 different books. You are already talking customization and automation between the two in your proposed ideas if the interco process is too slow for you focus the automation in increasing real time in areas you need them and let multi company do the rest. Don’t try to square peg round hole this one it very very likely will end in a mess. Company is too central to the software to fudge

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It sounds like you’re proposed process will work, albeit still a bit dodgy/complicated. Here’s how we do it - hopefully this will make sense.

We have a company in the UK and one in the NL. Both order from the company in the USA (purchasing from a vendor), and the USA company drop-ships directly to the customer (Mark For in Customer Shipment). Everything processes as though the sale is between the UK(or AMS) company and the customer, but the goods are purchased from their vendor (the USA company). Everything is an ‘arms length’ transaction to avoid scrutiny, with the UK/AMS company taking the order, billing, and receiving all monies from the customer - and treating the product as a purchased item from the USA Company. The UK/AMS company issues a PO to the USA company, and “receives the goods” on paper, as well as gets invoiced form the USA company - which is technically a vendor of the UK/AMS company. In the grand scheme, a parent company owns them all so GL consolidation and financial reporting works just fine.

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Hello @Ricky90 … did you able to get the result you are looking for with @MikeGross suggestion?
or still need help?

Hi, we cant get the exact results we want but the only way we can do this is creating manual Misc Invoices from our 2nd company to Customers based on an invoice from 1st company to 2nd company.

@Ricky90 - Can you elaborate on what “far too slow” means regarding the multi-company process? We have our Multi-Company-Server-Direct sync’s set up to run every 10 minutes (I wasn’t able to convince folks that running it more frequently would be fine). The process for each company finishes in seconds… You can also run it continuously, but I haven’t tried that in years… Keep in mind that there’s a limit to transactions (first 100, IIRC?), and then the rest will get processed in the next batch.

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@askulte The whole process from Sales Order through to Invoicing on Company A & B.

We run two companies through one physical company. ie the same staff Process Orders, Pick/Pack/Ship etc. It very much like double entering when you are having to go through suggestions for PO which then convert to SO in Company A you then pick/pack/ship to Company B and then drop ship to Customer. its just too much to ask of the limited staff we have.

It isnt one for one ordering either if 10 Sales Order are processed on Company B with the same part code then 1 order would be placed to Comany A with the toal quantity of all sales orders so if we were out of stock we would have no way of properly tracking Company B Customers orders once they are sat in Company A as it is no longer their order it is Company B order.

Gotcha. I’ve had similar situations too… I bet you could customize things to automatically processes them (above my skill set, but I can dream!).

Thinking out loud:

  1. Customer X demand SO in Company A gets turned into a drop ship supply PO in Company A (do you want the PO suggestions to automatically create PO’s for specific parts / families? Or does someone still need to manage them?)
  2. Company A supply PO goes to Company B (via existing multi-company process), and a drop ship SO would be automatically created with a customer and bill-to of Company A, but a ShipTo of Customer X.
  3. Company B Customer Shipment Entry automatically creates a Drop Shipment Entry in Company A (which satisfies Customer X’s SO).

For arms-length pricing between Company A and B, is it formula based or set ahead of time, or are they custom parts that need someone to manually do it? I’d love to explore this more. Has anyone else done it?