Often companies say that they want to see each division reported as if it was a standalone business. Even though all divisions may be part of a single legal entity, companies frequently need to make decisions based on who is under or over performing. Treating each division as a separate business can provide measurements to consistently compare divisions. Frequently, balance sheet accounts such as Fixed Assets and Accounts Payable are included to provide a measure of the capital required to run each division.
However, providing an infrastructure to actually allow each division to function as a business is both expensive and inefficient. Most companies find that using a consolidated payables department for accounts payable is much more effective than providing an AP department for each division. They struggle however, with reconciling that effectiveness with the benefits of divisional reporting.
Dynamics GP provides...