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Allow Account Creation Against Child Company - What does it do?

Hi community,

In the Company doc, there’s a checkbox field named “Allow Account Creation Against Child Company”, could anyone explain the function of this?

Thank you.

Hello,

Usually creation of an account in a child company is only possible if it added in the parent company. In case this checkbox is checked in the child company, the system will allow you to create account in the child company without creating the same in the parent company.

Hope this helps.

Hi Michelle, thank you for your help.

@michelle could you please explain with some example. I can’t understand what this function actually does.
Thanks in advance.

Hi,

So you can create multiple companies in ERPNext, right? If these companies have parent-child relationship as shown below, the Chart of Accounts of the parent company gets copied in the child company.

For example, Unico Plastics is the parent of M. A. Tech. So the chart of accounts of M. A. Tech will be same as that of Unico Plastics. In case I need to add any new account in M. A Tech, I will have to first add it in Unico Plastics and then it will get created automatically in M. A. Tech.

If the “Allow Account Creation Against Child Company” in child company is checked, it will directly allow you to create an account in child company without creating an account in the parent company first.

Hope this helps.