Available in Sage 50 Premium Accounting and higher.
Consolidate Companies (Overview)
How Do I...
Company consolidation lets you combine the charts
of accounts of a number of existing Sage 50 companies to create a new
consolidated chart of accounts. The new consolidated company created in
this way will let you see consolidated financial statements for a number
of subsidiary companies operating under an umbrella organization.
For example, say your company is a food service organization that incorporates
a restaurant, a food distribution service, and a catering service. You
could combine the charts of accounts of these three subcompanies
to create a new consolidated chart of accounts for the entire organization.
Consolidated companies you create act exactly like any other Sage 50
company. You can add to their charts of accounts, maintain customers,
vendors, and employees, and report on company just as you would in any
other company.
You consolidate companies through the New
Company Setup process.
- In the New
Company Setup - Company Information window, you enter information
for your new company as usual.
- In a window called New
Company Setup - Subsidiary Companies, you choose the subsidiary companies
you want to use to make up the new consolidated company. In the example
above, say you want to create a new food service organization called Ah!
Italia Foods.
In the Subsidiary Companies window, you would add your three existing
subsidiary companies to this organization:
- Nella's
Bella Napoli
Restaurant
- Minestrone to Nuts Food Distributors
- Ciao Now Caterers
The result would be a company that contains the charts of accounts of
the three subsidiary companies. Now you'd be able to track general ledger
information, budget, and create financial statements and general ledger
reports for all the subsidiary companies within your new consolidated
company. This would greatly simplify and streamline your financial duties
for the three subsidiary companies.
Consolidation Rules and Facts
Following is information you should know about consolidated companies
and the subsidiary companies that make them up:
- The companies you choose as subsidiary companies
must all have been created in the same
release of Sage 50—for
example, Sage 50 2013.
- The subsidiary companies you choose must all use
the same accounting
method (that is, cash or accrual) and have the same fiscal-year structure.
The consolidated company you create will share these same attributes.
- For all subsidiary companies you choose, each
general ledger account must be of the same exact type (for example, Account
10001, Petty Cash).
- The new consolidated company will contain transaction
and budgeting information brought over from the subsidiary companies.
- Budget information for subsidiary companies will
be imported into the consolidated company along with the charts of accounts
of the subcompanies. Budgets for each account in each subcompany will
be totaled to create the budget for the corresponding account in the consolidated
company.
- If the subsidiary companies you choose require
user IDs and passwords for access, you will need to enter the ID and password
for each subcompany. Tell me more about this.
- So that you'll be able to determine the origin
of transactions created in subsidiary companies, general journal descriptions
will include the company name of the subcompany in which a transaction
was created.
- All transactions created in the consolidated company
will have the reference "Consolidated Trans."
- If the account segment structure for the consolidated
companies is the same, the structure will be copied automatically to the
master company when it is created. However, if the structure is not the
same, Sage 50 will leave the segment fields blank in the master company
and notify you as such when you create the master company.
For more rules and conditions you should know before consolidating,
see the "Pre-Consolidation
Checklist."
Reconsolidating Companies
At some point in the life your consolidated company, you may want to
remove one or more of the subcompanies that make it up. Or, you may want
to add one or more new subsidiary companies. The Reconsolidate
option in the File menu lets you
do this. Tell me more about this.
What do you want to do next?