Company Consolidation in AX-
Hi All,
Today I am
going to be explain you what is Consolidation mean and How to do Consolidation
in MS Dynamics AX.
Consolidation
means-
Consolidation functionality in AX 2012 can be used to combine the
financial results for several subsidiaries into a single, consolidated company.
Setup a Consolidation company
1.
Setup General Ledger Parameters
2.
Setup chart of account.
3.
Setup default currency and exchange rates
4.
Specify system account for consolidation exchange differences
5.
Setup Elimination Rules
Note: The consolidation company will only be used to gather transactions
of several subsidiaries and cannot be used for daily transactions.
To prepare a consolidation Company (Parent) perform the following steps:
1.
In the Organization Administration module click Setup à organization à Legal Entities
2.
Click the NEW button to create a new legal entity.
3.
In the general Fast Tab Click the use for financial consolidation
process check box.
4.
Mark the use for financial elimination process check box to allow
elimination transaction to be created in the ledger of the legal entity.
5.
Open up the newly created consolidation company and go to General Ledger
à Setup à Ledger
6.
Select the default information such as Chart of Accounts / Accounting
Currency / Exchange rates / Fiscal Calendars etc.
Currency and Exchange Rates
If some subsidiaries have foreign
currencies as their company currencies, click General ledger, click Setup,
click Currency, and then click Currencies.
·
Create
the foreign currencies.
·
To Set up
exchange rates click General Ledger > setup > Currency > currency
exchange rates.
Setup Consolidation System
Account
You must setup a
consolidation system account to automatically post differences resulting from
using different exchange rate types for different accounts when consolidating
subsidiaries into the consolidation company.
Go to General Ledger à Setup à posting à Accounts
for automatic transactions
In the Posting type field use the
arrow to select one of the following:
Balance account for consolidation
differences if you
are consolidating an integrated foreign subsidiary.
Profit & loss account for
consolidation differences if you are consolidating a self-sustaining subsidiary or a company that
contains the results of several self-sustaining subsidiaries and are using
translation methods to consolidate the data.
Ledger Elimination Rule
In the start we have marked “use
for financial elimination process” check box in the consolidation company
because the consolidation company should only contain transactions that occur
between parent company and the company outside the group and all the
intercompany transaction should be eliminated.
Let’s setup ledger elimination
rule in the consolidation company
Go to General Ledger à Setup à Posting à Ledger
Elimination Rules
- Click on new button to create a new rule.
- In the general FastTab specify the Consolidation company in the destination company field
- Mark the active check box
- In the journal settings field group specify the Elimination Journal
- Now click on lines button.
In the elimination method field
there two options
Net Change: eliminates an accounts net change
for the specified period(most common method)
Fixed amount: eliminates specified amount for
an account.
In the source account field
select intercompany accounts such as sales /Expense / purchases /
receivable payables
Select “Source” in the account
specification and dimension specification fields.
Setup in Subsidiary Company
Map Chart of Accounts
The best case would be that the
Consolidating company has the same chart of accounts as subsidiary accounts. If
that is the case no need to perform the accounts mapping.
If the chart of account of
subsidiary is not similar with the parent company perform the following steps
to map accounts
In the subsidiary company go to
General ledger > Common > Main Accounts > select ledger account in the
general FastTab enter the corresponding account number of the Consolidated
company in default consolidation account field.
Map Financial Dimension
Follow these steps to map a
dimension in the subsidiary to the consolidated company.
- Click General Ledger à Financial Dimension à Financial Dimensions.
- Select a Dimension and click financial dimension values button
- In the group dimension field on the general FastTab, enter the dimension which will be used for consolidation.
Perform Online Consolidation
Microsoft Dynamics AX supports
consolidation
- Online Consolidation – Subsidiary company resided within the same database
- Import / Export – If subsidiary company resides in a different database than an export / import option may be used to get the data in the specified template (delimited file)
Here I am
going to perform an online consolidation
Click on General ledger à Periodic
à Consolidate à Consolidate online
In
the specification field you can specify how the dimension should consolidate
from the subsidiary and specify the segment order
In the currency translation tab
set the translation exchange rate type if subsidiary company has different
accounting currency. And click OK.
You can view the consolidation
transaction by clicking General Ledger -> Inquiry ->
Consolidation
Click transaction button then
click on actual.
Thank
You- Subrat Kumar
No comments:
Post a Comment