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How do I consolidate the group's companies?

Keep the group accounts in a legal entity of their own. Describe the group once on Consolidation Group: the members, how much of each is owned, how each is brought in, the rates and the accounts. Each period end, Save a Consolidation Run dated the period end: it posts the change in the consolidated position since the previous run, and the trial balance of that legal entity is the consolidated trial balance.

Screens
General Ledger › Consolidation › Consolidation Group, Consolidation Run
Who
The group accountant
Takes effect
On Save of the run
Needs first
The members' periods closed and posted

Steps​

  1. Once: a legal entity for the group books, with the group accounts released to it.
  2. Once: the closing and average rates of each member currency in two Exchange Categories.
  3. Once: Consolidation Group in that legal entity: the accounts, the Members (method, Ownership %, Historical Rate, Investment Account), Account Rules if the members' accounts differ from the group's, Eliminations for intercompany accounts.
  4. Each period end: the rates for the Till Date.
  5. Each period end: Consolidation Run, New, the group and the Posting Date. Save.

Check it worked​

  • The run's Consolidation Lines show each step, member and account, with the whole Group Amount and what this run posted.
  • The Trial Balance of the consolidation legal entity is the consolidated trial balance. Intercompany accounts are nil or sit on the difference account.

What posts​

One General Entry per step, in the consolidation legal entity, of the change since the previous run. See What posts.

If something looks wrong​

  • "No rate from ... to ... on ..." Enter the rate for the Till Date.
  • "Accounts ... are not set up in Legal Entity ..." Release them to the consolidation legal entity.
  • A run must be done again. Reverse it on the toolbar (the latest run first) and save a new one.