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Managing Multiple Entities: Intercompany

Many cannabis operations are a subsidiary of a larger parent company. From restaurants to breweries, cultivators to dispensaries, parent companies can have trouble keeping their books in order while juggling different software applications.

A 2016 Deloitte poll of more than 3,800 accounting and finance professionals suggests that disparate software systems in the different legal entities pose the biggest challenge and risk to accounting errors.


Intercompany capability is one of the most important, should be out-of-the-box features for businesses managing subsidiaries. It allows users with more than one legal business entity to set up multiple companies to separate the accounting functions of each.

Your organization may have more legal business entities than equivalent accounting and administrative resources. Intercompany offers organizations like these a massive benefit by allowing users to simplify and streamline their business processes. Intercompany postings support transactions between companies including:

  • General Journal Entries
  • Purchase and Sales Orders
  • Purchase and Sales Invoices
  • Credit Memos
  • Return Orders

Example 2: Seed to Sale

When Dispensary A buys items from Processing B, Dispensary A creates a Purchase Order and sends it electronically to Processing B. A Sales Order is then automatically created in Processing B. Transactions between entities are entered once, automated across entities, and fully visible with a complete audit trail.

Example 1: Bites, Brew, & Bud

A restaurant and brewery management company has acquired several cannabis retail stores to diversify their portfolio. While the entities will not purchase goods from one another (at this time), the centralized system delivers uniformity in entry and reporting, reduces costs, and improves productivity.

Having a single ERP solution also future proofs the entire business as cannabis lounges are looking to legalize. With intercompany software already in place, cannabis lounges can purchase food from the restaurants and breweries can purchase infused beverages from their retailers. All accounting activity is streamlined and automated between entities without any extra hassle or setup.

Global Scalability

With a true ERP software solution, global transactions are not a problem. 365 Cannabis, built on the Microsoft Dynamics 365 Business Central platform, has unmatched global scalability, including the capability of handling parallel industry entities (restaurants, breweries, horticulture, agriculture), different currencies, and intercompany transactions which can be processed in any chosen currency.

While it may seem trivial, intercompany provides vital functionality along with the following benefits:

  • Increased productivity due to time saved and transactions simplified.
  • Decrease in human error due to one-time entry and system-wide, automated updates.
  • Complete audit trail and full visibility of transactions.
  • Cost-effective, efficient transactions with subsidiary companies and affiliates.
  • Efficient distribution of documents to all companies.

If you’re currently managing two or more separate entities, it’s time to consider the true value of ERP software with intercompany capability. Contact us today to see how 365 Cannabis can streamline all of your operations in one solution.