Streamline Subsidiary Management with Dynamics 365 Business Central

In today's globalized business environment, managing multiple subsidiaries under a group holdings company can be a complex task. Each subsidiary may have unique operational requirements, regulatory compliances, and financial reporting standards. Dynamics 365 Business Central provides a robust solution to streamline these processes, offering an integrated platform that supports multiple legal entities within a single tenant. This blog post will explore how subsidiaries can leverage Dynamics 365 Business Central and how it can be set up to optimize efficiency and reduce costs.

Why Choose Dynamics 365 Business Central for Subsidiaries?

Dynamics 365 Business Central is a comprehensive business management solution that helps small to mid-sized organizations automate and connect their financials, sales, service, and operations. For group holdings companies, it offers several compelling benefits:

1. Unified Platform: Manage multiple subsidiaries under a single deployment, allowing for seamless data integration and consistent processes across the organization.
2. Cost Efficiency: With one subscription per user, not per legal entity, you can significantly reduce licensing costs.
3. Scalability: Easily add new subsidiaries or scale operations as your business grows without the need for separate deployments.
4. Enhanced Security: Implement robust security layers to control access to specific entities and data, ensuring compliance and data integrity.

Setting Up Dynamics 365 Business Central for Multiple Subsidiaries

Setting up Dynamics 365 Business Central to manage multiple subsidiaries involves several key steps:

1. Single Tenant, Multiple Legal Entities: Start by deploying Dynamics 365 Business Central in a single tenant. Within this tenant, you can create multiple legal entities, representing each of your subsidiaries. This centralized approach simplifies management and reduces the overall IT footprint.
2. User Licensing: Each user within your organization, such as a finance manager at HQ, requires only one subscription to access the system. This subscription allows them to work across multiple entities based on their role and permissions, eliminating the need for multiple licenses.
3. Role-Based Security: Define roles and permissions to control who can access which entities and what data they can see or modify. This ensures that sensitive financial data remains secure and that users only have access to the information they need for their role.
4. Company Hub: Utilize the Company Hub feature to enable users to switch between different legal entities easily. This feature is particularly useful for finance managers, auditors, and executives who need to review and manage data across multiple subsidiaries.
5. Intercompany Transactions: Set up intercompany transactions to automate the process of recording transactions between subsidiaries. This feature helps maintain accurate financial records and simplifies the consolidation process.

Practical Use Case

Consider a group holdings company with three subsidiaries: Subsidiary A, Subsidiary B, and Subsidiary C. By deploying Dynamics 365 Business Central, the group can manage all three subsidiaries within a single tenant. Here’s how it works:

• Finance Manager at HQ: Jane, the finance manager, needs to review financial data for all three subsidiaries. With a single user subscription, Jane can access the Company Hub and switch between entities as needed. Role-based security ensures she can view and edit data based on her permissions.
• Subsidiary Operations: Each subsidiary operates independently, but standardized processes and shared data ensure consistency. Intercompany transactions are automatically recorded, reducing manual errors and streamlining consolidation.
• Scalability: As the group acquires new subsidiaries, they can be easily added to the existing deployment. This flexibility allows the group to scale operations without significant additional costs.

Are you ready to streamline your subsidiary management and reduce costs with Dynamics 365 Business Central? Contact us today at This email address is being protected from spambots. You need JavaScript enabled to view it. to schedule a meeting and discover how you can transform your business operations.