A critical decision that is very difficult to change after implementation is whether or not to have multiple companies in Dynamics GP. Sometimes there is no question, as there is only one company or there are clearly separate entities. However, often there are multiple legal entities, branches, or subsidiaries that may require separate accounting records and procedures, but also share customers or inventory items.
There is no limit on the number of companies you can setup in Dynamics GP. Each company created becomes a separate SQL Server database and behaves autonomously, save for a few shared characteristics global to the entire Dynamics GP installation, such as system users, currency setup, and exchange rate tables.
There are situations when separate companies are clearly recommended in Dynamics GP:
If accounting records must be kept in different functional currencies to conform to local requirements
When using Dynamics GP Payroll and there are different Federal...