Sage 50 offers a consolidated option of adding the financial data of more than one company into a single set of financial accounts for group companies. In this blog we will see how we can consolidate companies in Sage 50 with the help of the Consolidation Wizard.
The wizard first creates a chart of accounts for the consolidated parent, based on the chart of accounts of the parent company. Then to ensure accuracy, the wizard matches the subsidiary company accounts with that of the consolidated parent.
Please follow the steps mentioned below to create a consolidated company in Sage 50:
- First, open a parent or subsidiary company.
- Go to the File menu. In the Home window, click on Consolidate Company.
- Click Next. The wizard will start on your screen.
- Verify if the present company is parent or subsidiary.
- Enter a file name for the consolidated company. The wizard will then create a new data file in .csi format for the consolidated company.
- Click Next.
- Now click on Add to identify the subsidiary companies
- Click Next.
- Navigate to the Related Accounts page. You would see the Consolidate Company wizard maps account numbers automatically from the parent company to each of the subsidiary companies.
- If you want to map accounts manually, select the concerned company and click on Relate to map accounts manually.
- Now select on show all un-mapped accounts. Near each of the subsidiary accounts, click Find in the Consolidated Parent Accounts column. This way, you can identify a parent account to map to.
- After you have matched all accounts, Click OK
- Repeat the last 3 steps for each of the subsidiary companies for which you need to do account mapping.
- Click Next to finish the Consolidate Company wizard. It will retrieve the opening balances and the transactions for the present fiscal from all the subsidiary companies to the consolidated company you just created.
We hope the simple steps provided above would help you consolidate multiple companies in Sage 50.
Example – Let us suppose your company deals in foods and owns 1) a catering service, 2) a restaurant and 3) a food packaging service. With this feature in Sage 50, you can combine the charts of accounts of all these 3 companies and set up a consolidated chart for the entire business. The consolidated company would act as any normal Sage 50 company. You can maintain your vendors/customers/employees, add to their charts and generate reports just like you do in case of any other company.
If you experience any difficulties in carrying out the above-mentioned steps, you may speak to our experts. We have a highly skilled team of seasoned experts and we will be able to provide all the support and services, whenever you contact us.
Frequently Asked Questions (FAQs)
How often should I consolidate companies in Sage 50?
There is no hard and fast rule as such. Ideally, you should update your consolidated company when you carry out your year-end procedures. Nevertheless, you may update your consolidated company more often, if you want to keep your records more up-to-date.
What are the criteria we should meet before consolidating companies in Sage 50?
Some of the important criteria are as follows-
- The companies you select as subsidiary, must be from the same release year—for example, Sage 50 2021.
- All the subsidiary companies must use the same accounting method and have the same structure of fiscal-year.
- All subsidiary companies you select have the same type of general ledger account.
- If the subsidiary companies need user IDs and passwords for granting access, you need to enter the user ID and password for each of them.
- All transactions created in the consolidated company must have the reference as “Consolidated Trans.”
What are the Benefits of a Multi-User License in Sage 50?
- You can create and consolidate multiple companies in Sage 50
- You can change the inventory levels for loaded transactions.
- It reduces the complexity.
- It helps you protect your data from unauthorized users while working with clients.
- It helps you manage the same tasks simultaneously.
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