Only Parent can be of type Direct Income error message when creating company

Anyone know what is the root cause of this message “Only Parent can be of type Direct Income” when creating a company? Thank you

Are you creating a child / subsidiary company under a parent?

It seems Parent company income GL account type is not set properly and that is what is stopping you to create a new company with same chart of accounts.

The direct income GL account is a parent account for which you can set account type as direct income only. It cannot be set for a child GL account as shown in below screen shot. The account type has to be income account for all child GL accounts.

1 Like

Yep I just set the account type to empty and set back to Direct Income just to allow create a child company. Thank you this is actually the solution.

1 Like