The short answer

Set up each separate legal company, with its own tax number, bank accounts and statutory accounts, as its own company with its own books, and treat a branch as a warehouse and cost centre inside its company. Settle each company’s code, currency, country, fiscal year and time zone before the first transaction. Number documents apart, and plan to add up group figures yourself.

Key takeaways

  • Ask your auditor which units file their own accounts; that list is your list of companies.
  • Put each company’s code and the year at the front of its document numbers, so counters restart without collisions.
  • Record sister-company trading on both sides, and match the receivable and payable to the riyal every month end.
  • Give each sister company the same customer and vendor code in every set of books.
  • For group figures, add each company’s statements together and remove the sales and balances between them.

Company, branch or cost centre?

The first decision is what each unit is. A separate legal company has its own tax number, bank accounts and statutory accounts, and must be set up as its own company in the system, with its own books. A branch of the same company shares those books and needs only its own warehouse, its own staff and a cost centre to report its results.

Getting this wrong is expensive to undo. A branch set up as a company splits one set of books in two; two companies set up as one mix figures that must later be pulled apart by hand.

  • Its own tax registration: a separate company.
  • Its own bank accounts and statutory accounts: a separate company.
  • A different books currency or country: a separate company.
  • Same company, another city: a branch with its own warehouse and cost centre.
  • A route or a team: a cost centre, not a company.

TipAsk your auditor which units file their own accounts; that list is your list of companies.

Settle each company’s fixed facts first

Some facts about a company are fixed for good once it starts trading: its code, its books currency and its country. Others shape every date in its books: the month its fiscal year starts and the time zone its business days are read in. Settle all of them before the first transaction.

  1. Choose a short code for each company, used on its document numbers.
  2. Set its books currency and country.
  3. Enter its tax number and logo for printed documents.
  4. Set the month its fiscal year starts.
  5. Set its time zone, so a sale just before midnight lands on the right day.

Number each company’s documents apart

Two companies must never issue the same invoice number, and a reader should be able to tell from a number which company issued it. Give each company its own sequences and put its code at the front of each number. Add the year, or the fiscal year, so the counter can restart each year without collisions.

TipKeep the number template the same shape in every company, so staff who move between them read numbers the same way.

Decide who works where

Most staff belong to one company and should see only its records: its customers, its stock, its documents. A few, such as the owner, the group accountant and whoever runs the system, need every company. Decide which of the two each user is before you add them, and keep field reps tied to the company whose stock they carry.

Plan for the people in between. A regional manager over two of five companies cannot be limited to those two in Axon Suite yet: a user is tied to one company or has the whole account. Either give the whole account and rely on the role to limit what they do, or tie them to their main company.

Trading between your own companies

When one company in the group sells to another, both sides must record it: a sales invoice in the seller and a vendor bill in the buyer, for the same amount on the same day. Treat the sister company like any other customer and vendor, with its own record in each set of books, so the balances can be agreed.

At each month end, the seller’s receivable from the sister company and the buyer’s payable to it should match to the riyal. A gap means an invoice recorded on one side only, and it is far easier to find in the month it happened.

TipGive each sister company the same customer and vendor code in every set of books, so its balances are easy to find and compare.

Group figures: plan to add them up yourself

Each company produces its own statements in its own books currency. A group view adds them together and removes what the companies sold to each other, so internal sales do not inflate the group’s revenue. This step is called consolidation.

Axon Suite does not consolidate across subsidiaries yet. Plan to take each company’s statements at month end, translate any kept in another currency, add them up and remove the sister-company sales and balances, in a spreadsheet or your accountant’s own tool.

Checklist: Several companies checklist

  • List which units file their own accounts
  • Set up each legal company as its own company
  • Run branches as warehouses and cost centres
  • Fix each company’s code, currency and country before trading
  • Set each company’s fiscal year start and time zone
  • Put the company code on every document number
  • Decide for each user: one company or all
  • Agree sister-company balances every month
  • Plan the group consolidation outside the system

In Axon Suite

How Axon Suite handles it

Axon Suite runs several subsidiaries under one account, each with its own currency, country, fiscal year, time zone and document number sequences, and a subsidiary’s code, currency and country are fixed once saved. A user is tied to one subsidiary or works across the whole account, switching from the top bar; a field rep is always tied to one.

Feature

Several companies, one account

Add every subsidiary with its own currency, country, fiscal year, time zone and document numbers. A user works in one subsidiary, or across the whole account with a switcher in the top bar.

Open: Several companies, one account
Feature

Document numbers in your format

Each subsidiary keeps its own sequences. Shape every template from the subsidiary code, the year or fiscal year, the month and the user’s initials, and see sample numbers before you save.

Open: Document numbers in your format
Feature

Documents in any currency

Each document carries its own currency and exchange rate. With no rate on file and none typed, the document is refused, never booked at one to one.

Open: Documents in any currency
Feature

Roles that decide who does what

Every user holds one role, and every role holds a level per area: View, Create, Edit, Full or Approve. Without the level, the screen turns read-only and the server refuses the change all the same.

Open: Roles that decide who does what

Before you go

Questions owners ask

Can a manager see two of our five companies but not the rest?

Not yet. In Axon Suite a user is tied to one subsidiary or has the whole account.

Can each company keep its books in a different currency?

Yes. In Axon Suite each subsidiary has its own currency, set when it is created and fixed once saved.

Can we see one combined income statement for the group?

Not yet. Axon Suite does not consolidate across subsidiaries, so each company’s statements are combined outside the system.

Glossary

Terms in this guide

Open the glossary

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