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Company Setup

Adding Subsidiary Companies

 

Sign-up with kpi.com as a usual user and request kpi.com Support Team to enable Multi-Company feature. You will do it only once.

 

 

After filling in the Getting Started page in the Accounting & Finance, click the icon next to the username at the right-upper corner of the screen.

Once Multi-Company feature is enabled in your company, you will find additional settings Setup Company Subsidiaries.  

Proceed with the link to arrive at Subsidiaries listings page. Click Add New button to invite your subsidiary company or companies.

When adding a subsidiary company you would need to provide a basic information under COMPANY INFORMATION, ADDRESS INFORMATION and FINANCIAL INFORMATION.

 

 

Under COMPANY INFORMATION you would input subsidiary administrator's data such as, First Name, Last Name, Phone Number, Email, Child Company country. The administrator's email will be used to send the invitation into the system.

You may optionally fill in subsidiary company billing and shipping addresses under the ADDRESS INFORMATION section.  Otherwise, you can leave it at the discretion of the Child Company's admin.

Under FINANCIAL INFORMATION you will need to provide subsidiary's Base Currency and select what other functional currencies that child company will be dealing with in their daily activity under Operating Currencies. For example, Child Company prepares its reports for their own purposes in USD, but that company also uses EUR, GBP. In this example, child company base currency would be USD and EUR and GBP would be regarded as Operating Currencies in kpi.com.

 

 You need to make sure that Parent Company's base currency coincides with child companies base currency or is listed under Operating Currencies.

 

Next option would be to Save & Close or Save & New after which the subsidiary company admin will receive email from kpi.com to activate their company. Following the link, the admin would need to set their passwords.

 

Intercompany Sales

 

To conduct intercompany sales, which could be between subsidiaries from bottom to up sales, from parent company to subsidiaries or vice versa, you would need to add a customer and relate one of companies in the network.

 

Adding Intercompany as a Customer

 

When adding a customer, you would have an additional field Subsidiary visible only if Multi-Company feature is enabled.

 

 

To relate a customer a subsidiary company, you would need to select from the list of active subsidiaries. Once you have the subsidiary as a customer you can start selling services and inventory items the companies.  (Product Group and Assembly items cannot participate in intercompany sales).

 If the items you are selling to your subsidiary is not listed in that company's Products/Services listings page, those items will be automatically created in child company's account.

 

Creating Intercompany Sales Invoice

 

Select the customer related to a subsidiary company and choose the right currency, which is limited to the base currencies of the parent and subsidiary company.

Once a sales invoice issued by a parent company will be listed in Purchase Invoice listings page of the child company with Pending status. Accountants of the subsidiary company would then need to login to their account and click the button under Action in Purchase Invoice listings as is shown in the screenshot to the right.

 

 

Child company accountant or admin would need to set Purchase Invoice number and double check the exchange rate in the right bar and click Draft button, which would set the status of the purchase invoice into Draft. An accountant would need to revisit the Purchase Invoice and click the  Approve Invoice to finalize intercompany sales.

 

Consolidation

 

To consolidate Profit & Loss and Balance Sheet reports, the parent company admin or accountant need to set proper exchange rates under Exchange Rates tab, which is available only in the parent company account and lock the ex-rates by clicking Save. After saving, ex-rates cannot be altered.

 

 

  If no exchange rates are set in the Exchange Rate tab, in consolidation, transactions will be divided by 1 for the missing date.

 

Once the exchange rates are set and locked, the parent company can see consolidated Profit & Loss and Balance Sheet statements, all they need to do for this purpose is  reports is to check Consolidation and click Update to see the up-to-date report. 

 

 

 

 

 

See also

Help documents