Questions Understanding Consolidations

Posted by: Royce Lithgo

Watching this video: 

Does this mean that the purpose of Consolidations is to import data from your subsidiaries into a reporting Ledger in your parent company, but that reporting Ledger won't give you the complete consolidated position because Actuals in your parent company isn't included in the reporting Ledger?

Yes

In other words, you still need to build a report to combine Actuals in Parent with all imported subsidiary data? 

Yes

And where do eliminations enter the equation?

AFAIK, eliminations need to be built in to the report to filter our accounts which are for intercompany sales and purchases. There is no special processing for eliminations in the Import Consolidations function.

And if your CofA aligns between your parent and subsidiary, do you still need to assign the Consolidation Account on the CofA in your subsidiary? Same questions also applies for Segment Values. I would hope that if you didn't setup a mapping, it just uses the original source value.

Yes you need to setup mapping on Accounts and Subaccounts. Only mapped values will be imported. Also keep in mind that the mapped values are validated against the Parent. The "Synchronize" process run on the Parent when setting up the Consolidation actually pushes the account/subaccount values from the parent to the subsidiary to use for this validation. I assume if you added values in the parent, you may need to synchronise again.

I am not able to import any data from subsidiary - it completes with no message and no Transaction to release. 

Import Consolidations will only import data from Open periods in the Parent. If the period is closed in the Parent, you cannot import it via this process. This is because Import Consolidations creates journals that need to be released in the parent to update the consolidation ledger. 

I answered my questions above in Red.

I've found the Consolidations process to be quite limiting and of little value. You could achieve the same thing with a well written GI and then upload to a Journal. In our case, it is looking like I will need to build a consolidations reporting solution in Power BI. 

@roycelithgo hi royce I am trying to set up consolidation in myob advanced . Single currency. 14 entities ,4 levels of consolidation . I need to create notional consolidated entities for business combinations journal

my questions are :-

1) do I need to create another ledger called consolidation. How would that work?

2) what’s the easiest way to eliminate inter company transactions?