I want to set up a multi-company setup in ERPNext. For example, ABC Group is my parent company, and it has two child companies: Child Company 1 and Child Company 2. The standard system says there will be separate charts of accounts for the group company and both child companies. Now, if I talk about reporting, I can easily view the financial reports of Child Company 1 and Child Company 2 separately because transactions are being performed on the charts of accounts of these child companies.
However, if I look at the group company’s chart of accounts, no transactions have been performed. So, how can I view a consolidated report at the group level?
@mangroliya First of al thanks for the response. Moreover, I have few queries kindly clear my confusion.
In ERPNext, the system automatically copies the parent company’s chart of accounts to its child companies. However, if Child Company 1 operates as a manufacturing business and Child Company 2 focuses on trading or services, their charts of accounts will naturally differ. This raises the question: should a separate chart of accounts be maintained for the parent company, or should it be deleted only for the parent company? Alternatively, should the parent company’s chart of accounts be designed as a hybrid of both child companies? While this could work, it might result in additional manual effort to manage the chart of accounts effectively.
I have a question about managing the Chart of Accounts (COA) for a parent company with two subsidiaries—one for manufacturing and one for services.
Should the parent company’s COA include accounts for both businesses? For example, if the parent has GL accounts like Semi-finished Goods Inventory and Finished Goods Inventory (for manufacturing), and XYZ Services (for services), the system asks if I want to copy the parent’s COA when creating child companies.
I assume that after copying, I’d need to manually remove service-related accounts from the manufacturing subsidiary and vice versa.
Also, to generate separate P&L reports for each subsidiary or a consolidated report at the parent level, does the parent’s COA need to include both subsidiaries’ accounts?
To be honest with you, can’t tell without testing on a system. Moreover, we use a completely odd structure in Turkey consisting of a structure mandated by the government. Will let you know if I have the chance to test with meaningful data.
