Need help with consolidation and intercompany transfers

Hey guys. Honestly I am not that good in accounting and badly need your help.

I wish to run three businesses in Manager and need to know the best way to handle intercompany transaction as Manager yet has no transfer feature within businesses. In my case let ABC be a parent company and XYZ a subsidiary. How should i enter transaction to get a consolidated report in ABC which gives the total performance of both businesses XYZ and other subsidiary (sales, account receivables/payables, profit, inventory, expenses, etc.)

I hope i sound clear and thanks for your suggestions. Cheers.

I think trying to do this in Manager is going to be more work than it is worth. I would export the balance sheets and P&L statements for all business and import them to a common spreadsheet. Sum things up in the spreadsheet rather than torturing yourself to get Manager to do it.

Manager doesn’t have consolidation capabilities (as yet) so you have three choices:

  1. Exporting the reports and merging the data into a spreadsheet as mentioned above, but the limitation here is if each business has a different chart of account structure then aligning the data could be problematic. E.g. If one business has Bank Charges as its first P&L expense but another business has Bank Charges as its fourth P&L expense, you could potentially be doing a lot of realigning.

  2. Set up in a spreadsheet a Master BS & P&L which caters for all the chart of account variations and then transpose the data from the respective reports into the columns for each business. This would also allow for a column to enter any intercompany elimination entries - that’s if you are going to worry about that level of detail. (This could be a good practise exercise before considering (3)

  3. As with (2) but set up the Master BS & P&L inside a Manager business called Consolidation, “not” the parent business. This business would “only” have the default tabs activated - Summary, Journal, Reports & Settings so there is no complications with Control Accounts. Then via Journal entry transpose the respective reports, possibly utilising the tracking codes feature. The Journals could either be monthly results (via cloning) or cumulative results (via overwriting)

These options would only suit month end reporting - not day to day.

thanks @Tut and @Brucanna

I believe merging data in a spreadsheet would be more practical. I’ll go with that. Thanks both of you :slight_smile: