GL consolidation lets you combine the financial records for two or more entities within a single database into one consolidated set of financial statements. Proportional consolidation lets you consolidate partly-owned subsidiaries based on the percentage of the subsidiary owned by the parent entity. You can perform multiple consolidations within the same organization.

The consolidation process consists of determining the entities with accounts you want to consolidate, and setting up a consolidation entity in which to store the consolidation data. All accounts, sub-accounts, cost centers, and projects in the source entities can be mapped to the corresponding consolidation accounts in the consolidation entity using COA cross-references. You can also use COA Cross Reference Excel Integration (25.3.14.6) to load cross-reference mappings from an Excel spreadsheet, reducing the time required to set up consolidation.

The entities to be consolidated can have differing GL periods. The consolidation module manages these periods and ensures that they are aligned for the consolidation process.

Currency conversion is processed automatically based on exchange rate rules defined for each account. You cannot include cross-company or intercompany transactions in a consolidation, and these transactions should be eliminated before consolidation. You can use the COA cross reference functions to process some eliminations, but typically, other elimination activities can also be required.

Financial functions are available for each consolidated entity, letting you prepare eliminating entries or perform different types of consolidation postings. All the reporting options available in the system apply to consolidation entities as well.

See Consolidation.

The COA Cross Reference function lets you to map GL accounts, sub-accounts, cost centers, and projects in source entities to GL combinations in consolidation entities. In addition, you can also use COA Cross Reference Create (25.3.14.1) to define mappings from GL combinations to alternate COAs. The alternate COA mappings can be used to group and report data in statutory reports.

See COA Cross-References.