IFS/Consolidated Accounts is used for consolidation of general ledger balances and budget balances from a group of one or more companies to a parent company. All the companies involved must be registered in IFS/General Ledger. If the companies form a group having several levels, the links between these companies must be entered in IFS/Accounting Rules.
The work with the consolidation starts in the subsidiary. Consolidation of general ledger balances takes place periodically, while consolidation of budget balances usually takes place annually. If subsidiary and parent company are not in the same database, the consolidation can be created in a file and then sent to the parent company.
The subsidiary and the parent company can use different accounting currencies. However, for consolidation, the currency rates are determined by the parent company. Any currency rate differences are calculated and posted automatically. IFS/Accounting Rules contains functions for managing currency rates and posting types.
Basic Data Requirements (BDR)
Before the consolidation can start in the parent company, the code part function Consolidation must be specified. The identities for the subsidiaries are entered and the code part demands must be checked. Also, the voucher type must be stored as original. If the subsidiary company and the parent company keep accounts in different currencies, a posting type for currency differences must be specified.
The following must be done in the parent company before consolidation can occur:
Description of Process Model
When the balance consolidation
information exists in the subsidiary, it can be retrieved in the parent company from
either the same data base or from a file. When the consolidation transfer is performed in
the parent company, a voucher is created automatically and placed in the parent company's
hold table. The voucher is then updated to the general ledger. If
consolidation of general ledger balances must be changed, consolidation can be reversed
and a voucher created with the opposite postings for transfer to the hold table and
subsequent updating to the general ledger.
Follow-up of consolidation takes place within the parent company. The
parent company can use any of the functions within IFS Financials: queries, fixed reports,
or IFS/Report Generator.