Is parent company have child companies transactions recorded in chart of accounts?

I have 2 companies. Company A and Company B.
Company A is the parent of the company B.

Now. If I create a purchase receipt or purchase invoice in Company B, is this transaction value shows in Company A, the parent companies Chart of accounts?

Hi @Cross_X,

Each company operates independently, including its chart of accounts and financial transactions. If you create a purchase receipt or invoice in Company B, the transaction is recorded in Company B’s chart of accounts, and it does not automatically appear in Company A’s chart of accounts, even if Company A is the parent company.

To consolidate financial information across both companies, you would need to perform separate consolidation accounting, which involves aggregating data from each company to create consolidated financial statements.

It may offer tools for this, but it’s a distinct process from the individual chart of accounts for each company and must be managed separately to meet specific reporting needs.

I hope this helps.

Thank You!

Hi, @NCP

Thanks for the reply.

How can I show consolidated account data in chart of account on child company transaction?

Is there any way?