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Sister Concern

  • Sister concern refers to companies that are related to each other by sharing a common parent entity.
  • These companies can operate independently and may produce unrelated product lines.
  • They can also be direct rivals in the same space.
  • The term is used to describe organizations under the same management, where important decisions are taken by a person or group managing one or more organizations.

Ledger Account Reconciliation

Ledger accounts of Sister Concern Companies need to tally/reconcile at any point in time with each other.

To ease the reconciliation of inter-company accounts, MERCI has a built-in report:

  • Reports → Final Accounts → Sister Concern Position
  • Accounts Master → (Button at top) → Sister Concern Position
  • Bank / Cash Entry Modules → (View entry) → (Button) Check Sister Concern Position

We have provided Zooming to Auto Match/Reconcile the ledger accounts.

Inter-Company Contra Entry Creation

Inter-Company contra entry can be automatically created from Bank/Cash Entry Sections:

  1. View any existing entry in the Bank/Cash module.
  2. If the Account Name in the grid matches any existing company in the same year, you will find these buttons below the grid:
  3. Click Check & Post Contra Entry to post the entry in the sister concern company (Account in Grid).
  4. Click Sister Concern Position to check a comparative statement for all sister concerns at a glance.

This document helps in understanding the handling of Sister Concerns and Inter-Company Contra Entries in MERCI ERP.