Create Sage 50 Consolidated Company Setup – Complete Guide

When one business owns one or more other companies (a parent company), generally accepted accounting principles (GAAP) require that all financial records from the subsidiary companies be combined, or ‘consolidated,’ into a single statement for reporting purposes, often at the end of each fiscal year. This enables the presentation of all the companies under the parent company as a single entity. In this article, you will read how to create a Consolidated Company in Sage 50 accounting software.

Any number of subsidiary firms can be merged into a single consolidated parent company. The subsidiaries can be Sage 50 Pro Accounting or above, but they must all be updated to the same year version as the main business. During consolidation, all of the subsidiary firms’ accounts must be mapped to the main company’s.

How to Create a Consolidated Company in Sage 50 Accounting

In a few easy steps, the Consolidation wizard guides you through the process of forming a consolidated business. When you execute the wizard, a chart of accounts for the consolidated parent is generated, which is based on the chart of accounts for the parent business. The Consolidated Business wizard helps you in matching subsidiary company accounts to the consolidated parent’s chart of accounts to make sure that they are properly reporting. This will help you in creating a subsidiary company in Sage 50 software.

Step 1: Procedures Before Forming a Consolidated

• Check to see if all of the firms to be merged have updated to the same version of Sage 50 Accounting.
• Determine the parent firm.
• Determine whether or whether you have one or more subsidiary firms.
• Ascertain that each firm has a distinct company name and file name and that each company runs in the same fiscal year.
• It should be noted that the regulation for the same fiscal year would also apply to any firm with transactions in the prior, current, and next fiscal years. (Premium Accounting in Sage 50)
• Ascertain that the parent company is set to single-user mode and that the subsidiary firms are closed.

Step 2: Create a Consolidated Company

• Establish a subsidiary or parent company. 
• Enter the password for the sysadmin user if you are using security.
• Click Consolidate Company from the File menu in the Home window.
• To begin the wizard, click Next.
• Determine whether the present firm is the parent or a subsidiary.
• Enter the filename of the consolidated company.
• For the combined company, the wizard will generate a new data file (.csi).
• To proceed with adding more subsidiary businesses, click Next.
• Click Add to add one or more subsidiary businesses.
• After adding the subsidiary business, click Next to proceed.
• Select to display all unmapped accounts.
• Click the Find button in the Consolidated Parent Accounts column next to each unmapped subsidiary account to find a parent account to map to.
• When you’ve matched all of the accounts, click OK to finalize it.
• Steps 6 through 12 must be repeated for each sister business that requires account mapping.
• Click Next to proceed with the wizard.

Read More: Sage 50 Accounting is Unable to Create the New Company

The Consolidated Company wizard imports the current fiscal year’s opening balances and transactions from the subsidiary firms into the consolidated parent company. It finds opening balances and adds them to the consolidated parent business, as well as obtains all transactions for the current year up to the most recent transaction date.

How to Update Consolidate a Company in Sage 50?

As part of your year-end operations, you should update your consolidated company. If you wish to keep your records more up-to-date, you may update your consolidated business more frequently.

Refresh a Consolidated Company

You may generate consolidated company reports if you have formed a consolidated company to monitor and compare business performance for one or more firms. Update your consolidated business regularly to ensure that your reporting results are up to date, or when you wish to start a new year. This report is accessible exclusively for Sage 50 Premium Accounting and above.

• To update your consolidated company, make sure no other users are working on a combined parent or subsidiary company.
• In single-user mode, open your consolidated parent company (.csi file).
• Choose Consolidated Company from the File menu in the Home window to launch the Consolidation wizard.
• Select the option to update this consolidated company, then press the Next button.
• Select the firms with new transactions that you wish to be updated in the consolidated company by clicking in the first column. If necessary, select an alternative file location and then click Next.
• Click Back Up (recommended) to preserve a copy of your data before combining, or Next to proceed without backing up.

Read More: Sage 50 Company File Check and Repair

Conclusion

If you still face any issues in understanding how to create a consolidated company after reading the above steps, or if you are facing any glitches, you can contact our Sage 50 chat support team, and we will be there to help you.

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