Subsidiaries

A subsidiary is a company or branch that keeps its own set of books. Its currency is the currency its ledger is kept in, and its fiscal year start month decides how its periods fall. Axon Suite creates your first subsidiary when your account is opened; add one for every other company or branch that reports separately.

Add a subsidiary

1. Go to Finance ‣ Setup ‣ Subsidiaries and click New subsidiary.
2. On the General tab, fill in Code and Name, for example UAE and Gulf Trading Dubai.
3. Pick the Currency its books are kept in, and the Country it is registered in.
4. On the Tax tab, enter the Tax ID and the Commercial registration no., so they print on its documents.
5. On the Address tab, enter the Registered address.
6. On the Settings tab, pick the Fiscal year start month and the Time zone.
7. Click Save.

Caution

Code, Currency and Country cannot be changed after you save. The Fiscal year start month stops changing once fiscal periods exist for the subsidiary, so set it before you generate the first fiscal year.

Field	What it sets
Currency	The currency the subsidiary’s ledger is kept in. Entries in any other currency are converted into it when they post.
Fiscal year start month	The month period 1 of each fiscal year starts in.
Time zone	The zone a posting’s calendar day is read in, so an entry made late in the evening lands on the right day.
E-Invoicing	Issue this entity’s invoices through the tax authority’s clearance platform. Set it up with the Tax guides.
Active	Inactive subsidiaries are hidden from selectors.

Example

A trading group runs its head office in riyals and a branch in Dubai in dirhams. It keeps two subsidiaries: KSA in SAR and UAE in AED. A sale invoiced in dollars by the Dubai branch posts to the Dubai books in dirhams, at the rate on file for the invoice date.

Messages you may meet

Message	What to do
The fiscal year’s start month stops moving once fiscal periods exist for the subsidiary.	Keep the current start month. It cannot change once a fiscal year has been generated.