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Chart of accounts (consolidation)

It is important to consider how you want to set up Chart of Accounts in the parent company and in the subsidiary companies.

The parent company and each subsidiary company have their own Chart of Accounts. To transfer the values from the subsidiary to the parent company, you must link the nominal accounts in the subsidiary company to the related nominal accounts in the parent company.

To help identify the relationship of accounts between the subsidiary companies and the parent company, the structures of the Chart of Accounts should compliment each other. You should consider:

The following example uses the cost centres LON and NEW to identify the subsidiary companies London and Newcastle in the parent company.

  Subsidiary nominal accounts

become

Parent nominal accounts

London

A/c No

Cost

Dept

 

A/c No

Cost

Dept

Rent

16100

AAA

ADM

 

16100

LON

AAA

Electricity

16100

BBB

ADM

 

16100

LON

BBB

Motor expenses

18100

BBB

SAL

 

18100

LON

BBB

Newcastle

             

Rent

16100

AAA

ADM

 

16100

NEW

AAA

Electricity

16100

BBB

ADM

 

16100

NEW

BBB

Motor expenses

18100

BBB

SAL

 

18100

NEW

BBB

Note: The cost centre in the subsidiary nominal account is used as the department code in the parent company's nominal account.

If your nominal account structure is the same in all subsidiary companies, you can save time by creating a Chart of Accounts in one company and then copying all the data files into the relevant sub-folder for the other companies.


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