View Full Version : Consolidating Subsidiaries

07-14-2001, 09:49 PM
Am I correct that you cannot set up subsidiary companies and generate entity-specific and consolidated reports without purchasing the Consolidation Wizard add-on product? If I am incorrect, how do I set up subsidiaries in 7.0 so that I can generate financial reports for each subsidiary and on a consolidated basis?

Thanks in advance for your reply.

Diane Koers
07-16-2001, 07:50 AM
If the divisions are all part of the same company, but you want individual reporting, you could setup the chart of accounts to use department masking. For example: #301 is your sales account and you have three areas to report (clothing, books and repairs). You could make clothing, department 01, books to department 02 and repairs to department 03. You would then set up three additional accounts 30101, 30102 and 30103. Using this method, you could then create individual financial statements for just the accounts ending in ***01, then just the ***02's etc. You would also create a summary financial statement that adds up all the sales etc.

If they are totally separate corporations, you probably wouldn't want to use these steps, instead using the consolidation wizard.

Hope that helps a little...

07-16-2001, 06:14 PM
Thanks very much for your reply. A couple questions about the masking feature, because that actually may be useful even though for legal purposes the "divisions" I would create are distinct entities.

I had read about the masking feature, but based upon the software documentation I couldn't figure out how to create the consolidated financial reports that would reflect the administrative entity ("division") and the two operating entities ("divisions"). How would one create the consolidated reports?

Secondly, another reason I may favor the masking approach is because the way we do things, all receipts and disbursements occur at the administrative entity level and are then allocated to the operating entities. If I were to treat the 3 entities as divisions, please confirm that I could, in a single entry, record the disbursement of a check from a cash account "belonging" to division/entity 1 and allocate the amount to expense accounts that belong to both division/entity 2 and division/entity 3.

Thanks again, in advance, for your invaluable insight.

Diane Koers
07-17-2001, 04:53 PM
Masking is done in the Design of the financial statement, in the column heading sections. (Chapter 16 of the Peachtree for Dummies book covers masking....<shameless plug>)

Yes, you can distribute payments or other transactions to the multiple division accounts.