Perform consolidation

Note: If you are using consolidation, we recommend that you do not enter previous year journal entries. Prior year journal values are consolidated into the current consolidated period and this will distort current year values.

About performing consolidation

This posts the balances of the nominal accounts in the subsidiary company to the linked nominal accounts in the parent company. Consolidation is always performed in the subsidiary company. You must consolidate each subsidiary company individually.

Each relevant nominal account in the subsidiary company has a consolidated balance. This is accumulated every time the subsidiary company is consolidated.

When you consolidate, the difference between the actual account balance and the consolidated balance, for the selected period, is posted to the corresponding nominal account in the parent company.

See an example

Consolidating for the first time

Nominal account balance	£100.00
Consolidated balance	£0.00
Amount posted to the parent company	£100 - £0 = £100

Subsequent consolidation

Nominal account balance	£300.00
Consolidated balance	£100
Amount posted to the parent company	£300 - £100 = £200

If your subsidiaries operate in different currencies, the exchange rates set in the parent company, are used to convert the consolidation values to the parent company's currency. Any exchange rate differences are posted to the Exchange Differences account in the parent company Nominal Ledger. You will need to make adjustments to your balance sheet in the parent company. To do this, you must follow the process for consolidating foreign currency nominal ledgers.

You can perform consolidation at any time before the period is closed in the parent company.

To perform consolidation

Open: Nominal Ledger >Period End Routines > Consolidation.

Choose the Consolidation period you want to consolidate. Select the relevant open period from the drop-down list.

Enter the Consolidation date. This defaults to the last day of the selected Consolidation Period.

This is the Transaction date for the journalA record that holds one or more transactions for posting. Synonymous with batch in batch processing. posted to the parent company.

Enter a Reference and Narrative for the consolidation journal.

Click OK. This posts the consolidation journal to the parent company.

A report is printed showing the journals that have been posted.

Note: If the linked nominal account in the parent company does not exist, the journal for that account is posted to the Suspense account.