What are subsidiaries?

daughter accounts are accounts that are associated with what is known as a subsidiary. These accounts generally represent individual customer accounts and are used to record all transactions associated with each of these customers. When properly managed, the total amount of consolidation of subsidiaries monitored in the accounting records is perfectly balanced with the balance in the main book check account.

The function of subsidiaries is important for almost any type of business that provides payment conditions for its client base. For example, the Company provides services to services that are charged monthly. The customer or subscriber then has a specific period in which he can pay this monthly account without assessing late fees or fees.

In order to monitor the use and payment activities of each customer in the field of public services, the company will set up a support account for this customer in accounting Records. Each subsidiary accounts have full information about all customers, including noa number of accounts assigned to each individual customer. Once the bill on each customer is issued, this amount is entered into the account along with the invoice number and the date of the problem. Once the payment for this invoice is transferred, it is published to the account to reduce the balance due.

Collective activity in subsidiaries is also mirrored in a check -up account that is maintained as part of the main book. If invoices are issued, they are charged not only in subsidiaries, but also in the area of ​​the book accounts. As customers pay payments, they are charged in the area of ​​receivables in the book's receivables and on their own customer's subsidiary. Assuming all the necessary contributions are made in timely Manner. This approach helps to maintain the accounting books always balanced while facilitating the information and history of the account on each customer.

Thanks to the use of accounting software is whyEC publishing a contribution to a control account in the main book and at the same time publishes customer subsidiaries much easier than in the past. Accounting software is often configured to allow data to enter data on one screen. From there, the software records a check -up account and a customer's subsidiary at the same time. This approach can help eliminate problems such as the publication of a customer account post