ERP strategy & selection
ERP for groups of companies: running several legal entities on one platform
How Philippine business groups run several corporations on one ERP: separate books and payroll, shared master data, intercompany, access and consolidation.
Many Philippine businesses grow into groups of companies: separate corporations for trading, manufacturing, logistics, retail, property or new ventures, often owned by the same family or holding company. Each entity has its own SEC registration, TIN, books, employees and statutory filings. A multi-company ERP runs all of them on one platform, keeping their legal records separate while sharing what should be shared and giving owners one view of the group.
What must stay separate per company
| Item | Why |
|---|---|
| Books of accounts and financial statements | Each company reports and files separately |
| Tax registrations and BIR filings | Each company has its own TIN and returns (1601-C) |
| Payroll and statutory employer registrations | Each employer remits SSS, PhilHealth and Pag-IBIG separately (multi-company payroll) |
| Bank accounts | Funds belong to each entity |
| Invoicing series and POS registrations | Registered per company and branch |
What can be shared across the group
| Item | Benefit |
|---|---|
| Chart of accounts structure | Comparable reporting and easier consolidation |
| Item master and product catalog | Consistent products across trading and retail companies |
| Supplier and customer masters | One view of relationships across the group |
| Policies and approval matrices | Consistent governance |
| Shared services teams | One payroll, accounting or purchasing team serving all companies |
| KPI framework | Common scorecards and reviews (balanced scorecard) |
Intercompany transactions
Groups transact internally: a manufacturing company sells to a distribution company; a property company charges rent; a parent company charges management fees; employees transfer between entities. A multi-company ERP should:
- Record intercompany sales and purchases on both sides
- Use intercompany accounts that identify the counterpart
- Support reconciliation and elimination for consolidation (financial consolidation)
- Handle employee transfers as separation and hiring for statutory purposes, with history preserved
Access and governance
Users should see only the companies and branches they work for. Shared services teams may process several companies, while owners and group executives see consolidated views. Configure role-based access by company, with activity logs. See internal controls.
Shared services model
Many groups centralize payroll, accounting, purchasing and IT in a shared services team that serves all companies. This works best when:
- All companies are on the same platform
- Processes are standardized where possible
- Each company's data remains legally separate
- Service levels between shared services and companies are agreed
Rolling out across a group
- Design the group structure in the system: companies, branches, shared masters.
- Pilot with one company to build a template.
- Replicate to other companies, adapting for genuine differences.
- Turn on intercompany processes once at least two companies are live.
- Build consolidated reporting and management reviews.
See phased ERP rollout and ERP for large companies.
Where Cirquolus fits
Cirquolus supports one or several companies with multiple branches and product catalogs, company and branch setup, branch inventory and product reporting, module selection and page permissions, across stores, offices, warehouses and production locations. Payroll, HR, operations, financial management and Business Compass KPI run on the same platform for the whole group.
Frequently asked questions
Can one ERP handle several companies?
Yes, a multi-company ERP keeps each company's books, payroll and filings separate while sharing master data and providing consolidated views.
How are intercompany transactions handled?
They are recorded in both companies with intercompany accounts, reconciled monthly and eliminated in consolidation.
Can a shared services team process payroll for all companies?
Yes, with access by company, separate employer registrations and statutory reports for each entity.
Should all group companies use the same chart of accounts?
A common structure is strongly recommended for comparability and consolidation, with entity-specific accounts only where needed.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.