This article provides general information about the consolidation and elimination process. It includes answers to some frequently asked questions. When you consolidate data, the financial results for multiple subsidiary companies are combined into results for a single, consolidated company. Subsidiaries might be on different versions or systems, they might not be fully owned, and they might use different currencies. There are multiple options for consolidating data:.
There are many consolidation scenarios, and each method can handle the scenarios in different ways.
You have multiple options. You can use the Consolidate online option, and include eliminations during the process or as a proposal.
The transactions will be posted in the consolidation company. Alternatively, you can have a separate company that you manually create the eliminations in, and then use that company in Financial reporting or in the consolidation process.
The Financial reporting option has unlimited reporting currencies. The data is translated during report generation, based on the exchange rate type and currency translation method that are set on the main account.
However, because the Consolidate online option has only one reporting currency, a consolidated company is required for each reporting currency if you use that option. The Financial reporting option is the recommended method.
The Financial reporting option is the solution, because transaction-level detail can be viewed for as many companies as are included in the reporting tree definition.
We are using budget planning or budget control, and it must be consolidated. The Financial reporting option is the solution to consolidate any budget planning or budget control data.
Our subsidiaries are spread throughout the world, and we have multiple charts of accounts. What is the best method for consolidating our data?
You have multiple options when you must handle multiple charts of accounts. You can use the Consolidate online option, and then choose to use either the consolidation account that is defined on the main account or a consolidation account group.
You can also use the Financial reporting option, include multiple links to the financial dimensions in the row definition, and map the accounts. When multiple levels of consolidation are required, and different currencies are used at each level, you must use the Consolidate online option.
Multiple consolidation companies must Summary of elimination entries on consolidating student loans created that differ in their accounting and reporting currencies. The consolidation must then be run multiple times. The Financial reporting option always translates from each source company's accounting currency to the selected currency. Use the Consolidate with import option to bring the balances into a consolidation company.
You have multiple options for partially owned subsidiaries. By using the Financial reporting option, you can define a reporting tree definition and the ownership. You can also use a calculated row or column to represent the partially owned amount. You can even show the minority interest as its own row on a report. You can also use the Consolidate online option. The Legal entities tab has an Ownership column, where you can define the percentage that is owned by the parent company.
The Financial reporting option is the solution. Organization hierarchies that have legal entities or financial dimensions in them can be reported on in Financial reporting.
You can also create your own multilevel hierarchies by using a reporting tree definition that has a combination of legal entities and dimension values.
By using the Export company balances option to export from one instance and then using the Consolidate with import option on the other instance, you can consolidate the data. For more information, see Currency revalution in a consolidation company.
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