If 2 companies are there, they have maintained separate chart of accounts, how can you consolidate their activities?

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Shahrukh

  • Nov 20th, 2007
 

In this case you have to have a additional field in the COA called "Alternate Account".  Your month end consolidated reports must be based on the alternate account.

Example: Retail sales company has 52000.000 as the Purchase account 
                Property Management Co. has  54240.912 as the Purchase account
Both these account will have  a common "alternate" account example CO52000.000

Please note - If you are using alternate accounting; ensure "Account Creation" is in the hands of "Central" finance so that they can allocate a "alternate number"

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sudhi0381

  • Sep 21st, 2010
 

In case the two company codes are using two diffrent chart of account, in each chart of account the GL Account has be defined wtth a alternative GL account, which will represent in the Group Chart of Account. By this way the consolidation of both the company code in Group level will be done.

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Viswaraj

  • Dec 9th, 2016
 

To my experience, if the central reporting consolidation happens in an unique platform, there can be two types of chat of accounts (COA), one is the local COA (used in individual ERP) and a global COA (used to report globally/consolidation). All the primary COA can be globally mapped/linked to the Global COA by the central support team. By this way you can integrate the two platforms.

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