Editing Department generates the message: “The subsidiary restrictions on this record are incompatible with those defined for account: xxx (acctname). Subsidiary access on this record must be a superset of those permitted by the account.“
Solution
The message indicates that there is an Account associated to the Department which is not in sync to the assigned Subsidiary to the Account.
I. Restrict the Account to the Department
1. Go to Lists > Accounting > Accounts
2. Select and edit the Account
Example: myaracct
3. Restrict to Department
Example: mydept
4. Click Save
II. Assign Department to the Specific Subsidiary
1. Go to Setup > Company > Department
2. Select and edit the Department
Example: mydept
3. Assign it to specific Subsidiary desired
4. Click Save