Many organizations face difficulty in making decisions either to use multiple databases for each cost center/branches or one single for all the cost center/branches. The pros and cons of both options are listed below which will help to make the right decision.
New Stuff: Use of Template field in employee master
Pros for Single Database:-
- More flexibility to extract the Consolidated reporting/ PNL easily
- Easy accessibility to all the data in a single database
- Single point of maintenance and faster new entity setup for new branch creation
- Less database Maintenance (IT perspective)
- Configuration done for 1 entity (Location) will be applicable throughout the database
- Credit Control for Customer and Vendor becomes possible at the group level
- Single payment entry for common vendor/customer is possible
- Minimal efforts will be required to create master data at any moment
- Uniform codification of master data like COA, Vendor Master, Customer Master Etc.
- No Duplication of Masters
- Inter-company transaction will be smooth
- Any Development need not have multiple instances
- Year End and Month End activities would be done in common.
- Save on implementation cost.
Cons for Single Database:-
- User Access security cannot be restricted at the Brach Level i.e. one branch user will be able to view data of the other branches as well.
- Branch and Branch related fields selection at every transactional level will be an added selection if customer/vendor is shared by multiple Branches
- In case you need balance sheet branch wise and if you do inter branch entries, you will need to create branch clearing accounts for each location.
- Investment in the High End Database server as the database size would be near about 7 times higher.
- Year End and Month End activities would be done in common. Once you close the month, it will be closed for all the branches.
- All Transactions will have a common document series.
Pros and Cons of Multiple databases are the reverse images of the Single Database mentioned above.
Consider all the pros and cons and make an appropriate decision which matches your organization critical requirements.
Good luck in choosing the right approach for your organization! For more details, you could visit Sage Software Solutions.
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