This demo provides an in-depth understanding of the consolidation process in Dynamics 365 Business Central.
The following is a partial transcription of the video above:
“The first step is to create a new company. I usually recommend creating a template company, sort of a blank company that has all the configuration enabled. It essentially has all the master data, chart of accounts, dimensions, reports, posting set up, etc. configured but doesn’t have any transactions. This makes creating new companies easier. You just copy that template.
To create a new company, search Companies > New > Create New Company > and then select Production – Setup Data Only. The next step is to copy or download all your master data from your current company and then import it into the new template through a configuration package. This is the hardest part. We’ve got a configuration package; you can reach out to us, and we can send that over to you or we can actually create the company for you.
Once you have your template ready, you create a copy of that template company and rename it (Subsidiary or whatever your new company is). So that’s creating your new company. You might want to create a test company and just post some transactions there before you go live with it.
After you have your two companies, you should create a parent company. Let’s say, you’ve had one company until this point and are consolidating for the first time. You create your new subsidiary and create a new parent company at the same time using that template company. So, you’ll copy that and call it consolidation or parent. Within that parent company, you would then have to define the consolidation roll up. So that is done in the Business Units page.
You can have multiple layers of consolidation. There could be an international subsidiary based in Hong Kong or China or India or wherever you’re, say one layer of consolidation, and then you can consolidate that set of subsidiaries. Then maybe you have a second layer which goes up into the corporate office and the total company This is kind of a second layer or second consolidation step. Within each consolidation company, you define who the subsidiaries are of that company. For example – In this case, I’m in the CRONUS_2 company, so I’ll pick ABC company name and then I’ll add another one called My Company.
If it’s fully owned, you’ll consolidate a hundred percent of it, which is pretty typical. If it’s minority or majority owned but not a hundred percent, you can set the Consolidation %. If all companies are using the same functional currency, you’re will not be doing a remeasurement to the revaluation of the balance sheet into a cumulative translation adjustment and equity. You would leave all the currency codes blank. If there is a particular subsidiary that has functional currency different than the parent, then you’ll specify the currency and also specify your Exch. Rate Gains and Losses Acc. If the subsidiary is in a currency code other than the parent, then you’ll have to enter the average and ending rates for that. It doesn’t link to the currency pages.
Once the rates are entered, then you’re ready to run the consolidation, Actions > Functions > Run Consolidation, and you would do that each month. You can do it multiple times a period. It’ll essentially reverse out the prior consolidation and rebook all the entries booked in the subsidiaries to date. So, if you have an adjustment entry that you’ve booked a little late or you want to run consolidation multiple times throughout close for your financial reports, you can do it. You just rerun it each time. After your consolidation is run, there are a few reports that are useful. Here are 4 useful reporting tools…”
For additional information, contact us today!
– Jason has over 20 years of financial leadership experience in high growth technology companies. He is a Microsoft Certified Dynamics 365 Business Central Functional Consultant Associate. See Credential.
