is it ?
Depending on your organizational structure an entity could
correspond to a branch, depot, cost center, division, profit
center, work center, warehouse, store or your entire company.
It corresponds to the lowest atomic organizational component
that will be tracked within the system.
does that mean to me ?
If you have a simple, single location company then the
answer is "not a lot !" as you will only need
to establish a single entity that corresponds to your
as your corporate structure expands to multiple locations
or autonomous areas, then the concept of an entity group
composed of an arbitrary collection of discrete self
contained accounting entities becomes an extremely powerful
a single accounting entity can belong to any number
of entity groups you have the ability of maintaining
multiple structures that can be used for enquiry and
reporting purposes. For example, you can easily establish
entity groups corresponding to your traditional corporate
hierarchy, typically along geographic lines or core
you may also establish additional structures that cut
across these traditional, rigid views of your company
to enable easy comparison of key business areas. For
example, if your entities correspond to branches and
these are ranked as A, B or C grade, then simply establish
entity groups to reflect this and include the discrete
entities that belong to each, without regard to the
traditional corporate structural view you may have.
groups can be established and reorganized as required.
If you need a special one off consolidation of any arbitrary
grouping of entities to extract meaningful information,
they can be established on the fly.
dynamic nature of the entity group, and the atomic accounting
isolation of discrete entities means that the system
can easily support multiple companies or reporting structures,
with fully automatic consolidation and elimination capabilities.
does it work ?
An entity is simply an accounting building block that
is known to the system. When a new entity is created
it is automatically added to your menu system for access
and use with the various system transactions. For example,
when an entry is posted to the general ledger it is
always to a specific account within a nominated entity
(and the system automatically generates inter-entity
entries for transactions that cross these accounting
the real power comes about through harnessing the power
of the underlying relational database to allow these
entity building blocks to be grouped together to build,
or mirror, larger, more complex structures, coupled
with the fact that the system has been designed from
the ground up with this building block approach in mind.
if you wanted to look at stock availability in a certain
geographic area, produce a sales report for all of your
A class branches, or perform any of the other enquiry
or reporting functions on a specific group of entities,
the system can determine the discrete component entities,
extract and consolidate the required information for
each individual entity, and then present the required
details in summary or detailed form.