Business use case

1 Create a journal entry in the parent company and allocate the amount to different branches by choosing the analytic accounts. 

2 The income statement showcases the distribution of branches in columns, and the selection is done manually on the analytic account each time the user accesses the income statement (or other financial reports).

Video

Setting

1 Establish a parent company and designate five branches as Branch 1, Branch 2... up to Branch 5. 

2 Choose the fiscal localization for the parent company as the USA. 

3 Develop an analytic plan named "Branch." 

4 Establish five analytic accounts named Branch 1, Branch 2... up to Branch 5. Each analytic account should be associated with the analytic plan "Branch."

Workflow and example

1 Create a vendor bill of $1000 for the branches.

2 $1000 debit expense accounts (one GL account in the parent company). Select 5 branch’s analytic accounts and the distribution.

Result

1 In the income statement (profit and loss), select the ‘Branch’ analytic plan, see one column for $1000.

2 In the income statement, if we want to see all the branch's distribution amounts, we need to select all the analytic accounts (5 in this case).

3 In Accounting > Reporting > Analytic reporting

Select ‘plus’ sign under Total row > choose ‘Branch’ > Sees the branches distribution.

This way, we don’t need to select the analytic account in the financial report.