Optimizing operations with Odoo Multicompany

In the world of global business today, many corporations have multiple subsidiaries and/or divisions that operate in different parts of the country or worldwide. Handling these differently is the most perilous and also a bit of a labour resource. One such solution provided by the leading open-source ERP (Enterprise Resource Planning) platform, Odoo is its Multicompany feature. For this, it is important to note that Odoo has a multiply-company feature in which you can streamline and bring all operations (finances and processes) through the companies under your control- but with one single implementation.

In this blog, we’ll explain how Odoo’s Multicompany feature works and share the critical advantages of using multiple businesses or company accounts on a single account in comparison to those who still use separate CRM systems for every subsidiary.

Features of Odoo Multicompany

Centralized Management

Odoo Multicompany is a vital tool in Odoo that would help companies control multiple firms or entities from one place to manage them centrally. This enables users to easily switch between companies allowing them to view various entities without needing to log out or log back in. While improving operational efficiency and time-saving.

Support for Multi-Currency and Multi-Language

In the case of the use-cases like organizations running across countries each with its currency and language our to-go stateful implementation would not work, here is where Odoo’s multi-company functionality that supports multiple currencies as well as languages comes into the picture. The goal is for individual companies to operate in their respective markets but under the policies of the parent company.

Cross-Company Reporting

One of the biggest problems in financial reporting is how to reconcile financials across multiple entities. Odoo’s Multicompany feature extends that capability to generate financial reports at the company level and for a whole group. Consolidated Financial Statements, Subsidiary Company Balance Sheet and Profit & Loss Account: They give the most complete image of an organization.

Companies Sharing Resources

Easily making other companies to share resources with is one of the overachieving advantages for instance, you may have a central inventory/vendor/customer database everyone can share and sell from but keep them all in separate general ledgers. It helps to optimise resources and avoid duplication.

Intercompany Transactions

Odoo provides a multicompany feature where you can automate intercompany transactions (i.e., sales, purchases, invoices etc…) Irrespective of nature and kinds of goods or services traded between companies, these transactions are processed downstream in a way that syncs their impact across entities allowing for efficiency as well as accuracy in accounting.

Access Control and Security

With Odoo you can define very granular access control rules, ensuring users only see the companies and data that they have permission to handle. This helps to ensure security and data integrity by offering only the pertinent or necessary information available just to authorized users.

Odoo Multicompany Configuration Guide

The multi-company technique in Odoo is pretty easy to understand. In the below-given flow, they had categorised their setup into 4 simple steps.

1. Telnet Company Accounts org: – 2-0Activate Multicompany: In the general settings of your instance, you can activate multi-company as shown. But again, no two companies will be complete, individual system islands.

2. Add New Companies: You can add new companies under the Companies tab once you have activated it. It’s easy to create unique configurations for each company, e.g., currency settings, tax structure and chart of accounts.

3. Assign Users to Companies: Determine which clients use which company, and which one they should be able to access. There may be one or many companies in the Odoo and the users can be linked to different companies depending on the roles they play.

4. Configure Intercompany Rules: Establish intercompany transactions by various options of sales, and purchase between companies. Where there are inter-entity operations, Odoo replicates the process by preparing the corresponding documents automatically.

Benefits of Odoo Multicompany

1. Operational Efficiency: It is easier for businesses to operate all their operations from one subsidiary without having to use different software applications and hence save on cost.
2. Real-Time Data Access: Multicompany makes certain that everyone in the management processes obtains real-time information on any organization in the whole establishment and more to enhance decision-making and strategies.
3. Cost Savings: Odoo assists in controlling the number of overall resources, as well as minimizing the time spent on inter-organizational transactions through the support of the integration and automatization of the processes. In the past, businesses required a lot of systems to address different entities, which is not the case in the current world allowing for efficient costs.
4. Scalability: Odoo’s multi-company functionality makes your business develop. No matter whether you are venturing into different markets or opening new subsidiaries, it is easy to implement this function in Odoo Without any huge renovations for the existing systems.

Apart from that, for any business involved in multiple legal entities, the Odoo Multicompany has been designed to be a powerful, flexible, and scalable solution. Odoo centralises the management and automates intercompany transactions besides providing a satisfactory reporting solution so the company can limit costs and increase the efficiency of operations.

From a small business operating several local companies to an international group, the tool is more than necessary for any current business that wants to develop effectively. We at Bassam are experts in Odoo and how we can assist organizations to harness its power for growth. Call us now for an Odoo-free demo.