Inter Entity Transactions increases the accuracy of your financial data, streamlines business processes and provides tight control over transactions spanning multiple entities.
The Kativik Regional Government (KRG), created in 1978, delivers public services to 14 communities in Quebec’s far north, covering an area of over 500,000km2. It has a budget of over CAD 200 million and close to 400 employees, almost two-thirds of whom are Inuit. (www.krg.ca)
KRG’s operations comprise 5 different companies, each of which had their own Accounts Payable and bank account. Staff needed to maintain and reconcile 10 intercompany accounts, as well as performing 5 monthly bank reconciliations.
The volume of manual work this necessitated would inevitably lead to errors, such as duplicate payments when the same invoice was processed against multiple companies.
KRG’s Sage solution provider, D&A Business Management Solutions, proposed and helped implement Orchid’s Inter Entity Transactions module. As part of the solution KRG were able to dramatically simplify their operations, down to a single Accounts Payable.
A/P transactions, as well as most general journal entries, would only need to be input in one company. Allocations to other companies would be managed by Inter Entity, with intercompany accounts kept in balance automatically.
The results exceeded expectations according to Francois Ouellette, Finance Director of KRG, who said:
Orchid Inter Entity proved to be one of our best investments in years.
The reduction in manual entry not only meant lots of time saved, but also far fewer errors.
While not part of the original plan, KRG soon realised they could also use Inter Entity for posting salaries, inventory adjustments and work orders across multiple companies, leading to further benefits.
"Orchid Inter Entity proved to be one of our best investments in years."
Finance Director, KRG