Prior to reading this article, we recommend you read the following article:
The Consolidations Map covers the process to create the Consolidations Ledger(s), set up a Ledger Hierarchy, run the Consolidations routine, and create financial reports for Consolidations.
Note: This map defines the process for a Consolidations-Transactional Ledger Hierarchy. If creating a Consolidations-Budget Ledger Hierarchy, similar steps would need to be followed.
Identify Existing Transactional Ledgers to be Consolidated
In this process you want to identify the existing Transactional Ledgers that should be consolidated. In the sample screen below, there are four different companies (Company ABCD), which will be grouped together at the topmost level in the hierarchy tree as Consolidations ABCD. On the left side below the topmost level of the tree, there are two Transactional Ledgers (Transactional Ledger A and Transactional Ledger B). To the right of Transactional Ledger B is a second Consolidations Ledger CD, and to the right of that Ledger is the Eliminations ABCD Ledger, which was automatically created when the Consolidations ABCD Ledger was created. The final three Ledger on the lowest level of the hierarchy include Transactional Ledger C and Transactional Ledger D, which are children to Consolidations Ledger CD. The final Ledger on the lowest level is the Eliminations Ledger CD, which was automatically created when the Consolidations CD Ledger was created.
Create Consolidations Ledger(s)
A Consolidations Ledger(s) can be created from the Ledger screen by using the New Ledger dialog box to create a Ledger. Consolidations-Transactional and Consolidations-Budget options will be available from the Type drop-down list.
Set up Ledger Hierarchy
The Set up Consolidations tab allows you to create and set up a Ledger Hierarchy. This is started by using the Create Hierarchy button to create the topmost level of the Ledger Hierarchy. Once the topmost level has been created, additional Ledgers (both Consolidations and/or Transactional) can be added.
Note: If the topmost level of the Ledger Hierarchy tree is a Consolidations-Budget Ledger, all additional Ledgers will need to be a Budget Ledger and/or Consolidations-Budget Ledger.
Post Elimination Entries as Journal Entries to Eliminations Ledger
Any transactions such as adjusting entries and/or intercompany transactions that should not be included in the Consolidations financial reports can be posted as Journal Entries to an Eliminations Ledger.
Note: Journal Entries and/or Recurring Journal Entries can be posted to an Eliminations Ledger.
Close Accounting Period and Run Consolidations
After all transactions are posted to Transactional and Eliminations Ledgers, the Accounting Period can be closed as normal. Then, the Run Consolidations routine should be performed.
You have the option to perform the run routine in one of the following two ways:
- Run for Parent Consolidations - the run routine will consolidate Financial Cubes only on the immediate children of the selected topmost level in the Ledger Hierarchy. If the immediate child is a Consolidations Ledger, this option will not rerun the immediate child consolidations.
- Run Parent Consolidation with Children - the run routine will consolidate Financial Cubes for all levels in a Ledger Hierarchy. The run routine will start at the lowest level of the hierarchy (children) and run each lower level, working up to the highest level in the Ledger Hierarchy.
Use the Financial Reporter to create Financial Reports
After running the Consolidations routine, use the Financial Reporter to create Consolidations Ledger(s) and/or Eliminations Ledger(s) financial reports. The Standard Reports and/or the Custom Reports in Financial Reporter can be used.
- The article is new with the Magnolia release.