# China Subsidiary ERP Integration Template

> Source: https://netray.co/tools/multinational-china-subsidiary-erp-integration-template
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

A specification you can fill in to define how a China subsidiary ERP exchanges data with a global parent ERP: interfaces, owners, frequency, security and approvals.

## Category

erp-operations

## Erp

Kingdee, Yonyou, SAP, Oracle

## Region

China

## Audience

- Group CIO
- Integration architect
- Group controller
- ERP project manager

## Tool

**Kind:** template

**Output:** document

**Fields:**

#### Group company

**Key:** group

**Type:** text

**Default:** Northwind Industrial Group

#### China subsidiary

**Key:** sub

**Type:** text

**Default:** Northwind Precision (Suzhou) Co., Ltd.

#### Parent ERP

**Key:** parent_erp

**Type:** text

**Default:** SAP S/4HANA

#### China ERP

**Key:** local_erp

**Type:** text

**Default:** Kingdee Cloud Galaxy

#### Integration pattern

**Key:** pattern

**Type:** select

**Options:**

- Scheduled file exchange
- API / middleware
- Message queue
- Manual upload with controls

**Default:** API / middleware

#### Main sync frequency

**Key:** freq

**Type:** select

**Options:**

- Real time
- Hourly
- Daily
- Monthly at close

**Default:** Daily

#### Local currency and reporting currency

**Key:** currency

**Type:** text

**Default:** CNY local, USD group

#### Accounting basis for group reporting

**Key:** gaap

**Type:** text

**Default:** Local standards for statutory books, mapped to IFRS for group

#### Business owner

**Key:** owner

**Type:** text

**Default:** Group controller

#### Date

**Key:** date

**Type:** date

**Default:** 2026-10-20

#### Data and legal constraints

**Key:** constraints

**Type:** textarea

**Default:** Personal data and important data handling to follow applicable Chinese law. Legal to confirm what may be transferred outside China and under which mechanism.

**Blocks:**

#### Integration Specification

**Body:** Group: {{group}}
Subsidiary: {{sub}}
Parent ERP: {{parent_erp}}
China ERP: {{local_erp}}
Pattern: {{pattern}}
Main frequency: {{freq}}
Currencies: {{currency}}
Reporting basis: {{gaap}}
Business owner: {{owner}}
Date: {{date}}

#### Purpose and scope

**Body:** This document defines how {{sub}} exchanges data between {{local_erp}} and {{parent_erp}}. It covers what data moves, who owns it, how often, how errors are handled and what is deliberately kept inside China. The goal is group visibility and control without breaking local tax, accounting and data rules.

#### Interface register

**Table:**

**Columns:**

- Interface
- Direction
- Frequency
- Owner
- Notes

**Rows:**

**0:** Trial balance and consolidation data

**1:** China to parent

**2:** Monthly at close

**3:** Local controller

**4:** Mapped from local chart of accounts to group chart

**0:** Intercompany sales and purchase orders

**1:** Both

**2:** {{freq}}

**3:** Supply chain

**4:** Match on PO and invoice references

**0:** Intercompany invoices and settlements

**1:** Both

**2:** {{freq}}

**3:** Finance

**4:** Local fapiao rules apply to the China side

**0:** Material and product master

**1:** Parent to China

**2:** {{freq}}

**3:** Master data team

**4:** Local codes and Chinese names added locally

**0:** Inventory and production status

**1:** China to parent

**2:** {{freq}}

**3:** Operations

**4:** Summary level unless legal approves detail

**0:** Pricing and cost data

**1:** Both

**2:** As agreed

**3:** Finance

**4:** Transfer pricing documentation must stay consistent

**0:** Forecast and demand plan

**1:** Both

**2:** Weekly

**3:** Planning

**4:** Aggregated demand shared with group planning

#### Data mapping and master data rules

**Body:** Define one master data owner per object. Material, customer and supplier numbers should have a cross-reference table between {{parent_erp}} and {{local_erp}}. Chart of accounts mapping must be reviewed by group and local finance, with each local account mapped to one group account and rules for local-only accounts. Keep Chinese legal names and tax IDs in the local system, and only pass them to the parent where there is a business need and legal clearance.

#### Security, legal and operations

**Body:** Constraints: {{constraints}}

Define authentication and service accounts, encryption in transit, logging of data transfers, monitoring and alerting, error queues with owners, and support hours across time zones. Specify the period-end calendar so interfaces are frozen and reconciled at the right times.

#### Approvals

**Signatures:**

- Group CIO
- Group controller
- China finance lead
- Legal and compliance
- Integration architect

**Notes:** This is a planning template, not legal or tax advice. Rules on cross-border data transfer, personal information and important data are specific and change over time, so involve qualified legal counsel before data leaves China.

## Content

**Intro:** Many multinationals run a global ERP at group level and a local Chinese ERP at the subsidiary, because local tax and invoicing requirements are hard to meet from a foreign system. This template helps you specify how the two systems connect, who owns each flow and what must stay inside China.

**Sections:**

#### How to use this template

**Body:** Fill in the group, subsidiary, both ERPs, the integration pattern and the main frequency. The document builds an integration specification with an interface register, data mapping rules, security section and approvals. Use it in workshops with the group controller, local finance, supply chain and legal. Export to Word or PDF, then extend the interface table with your own flows and technical details such as endpoints and file layouts.

#### Why two-tier ERP is common in China

**Body:** A foreign parent system often cannot issue fapiao, follow local voucher practice or integrate with Chinese banks and tax platforms as smoothly as a local ERP can. Running a local system at the subsidiary solves this, at the cost of integration and consolidation work. The trade-off is honest: it adds interfaces and master data effort, but it can reduce local compliance risk. Some groups run the global system in China with local add-ons, which is another valid option.

**Bullets:**

- Local ERP handles tax, fapiao and local banking
- Parent ERP handles group reporting and planning
- Interfaces carry consolidation, intercompany and master data
- Legal reviews anything that leaves China

#### Consolidation and mapping

**Body:** Statutory books in China follow local accounting standards, while the group may report under IFRS or US GAAP. Plan a mapping of accounts and adjustments, and decide whether adjustments are booked locally or at group level. Intercompany transactions need matching references and agreed exchange rate rules so eliminations balance every month.

#### Common mistakes

**Body:** Frequent problems are unclear data ownership, no cross-reference for material and customer codes, interfaces designed without involving legal, no monitoring of failed messages, and no agreed close calendar. Define error handling and support responsibilities before go-live.

**Cta:** Netray and its ERP partners can help design and review integrations between local and global ERPs. For sensitive data we can run analysis models on your own infrastructure so data stays where policy requires.

**Faq:**

#### Can a foreign ERP run a China subsidiary on its own?

**Answer:** Sometimes, with local add-ons or partners for fapiao, vouchers and banking. Many groups prefer a local ERP for compliance and cost reasons. The right choice depends on size, complexity and the maturity of the global system's China localization.

#### What should be shared with the parent system?

**Answer:** Share what the group needs to consolidate, plan and control, usually summarized financials, intercompany flows, product master and planning data. Keep detailed personal data and anything sensitive local unless legal counsel confirms a lawful transfer mechanism.

#### How should chart of accounts mapping be handled?

**Answer:** Map each local account to a group account in a controlled table owned jointly by group and local finance. Review it each year and whenever accounts are added. Keep a record of manual adjustments needed to move from local standards to group reporting.

#### Is middleware required?

**Answer:** Not always. Simple scheduled file exchange works for monthly consolidation, but real-time flows and multiple systems usually benefit from middleware with monitoring and retry. Choose based on volume, support skills and security requirements.

## Search terms

china subsidiary erp integration, global parent erp china local erp, two tier erp china, erp integration specification template, china consolidation reporting erp, kingdee sap integration, yonyou sap integration, china data transfer erp

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