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.
Consolidation is set up and performed in each subsidiary company.
We recommend setting both the parent company and each subsidiary company to use the same number of accounting periods. Although this is not essential, it does help to keep track of your company's accounts over the same time period.
Set up the Nominal Ledger for each subsidiary company.
Open: Nominal Ledger > Utilities > Ledger Setup > Ledger Settings | Consolidation.
Select the relevant currency setting.
Although Nominal Ledgers only work in one base currency, you can have your subsidiary companies operating in different currencies and to that of the parent company. Foreign currency conversions are dealt with using the exchange rate set in the parent company.
|
Parent uses same base currency. |
Select this if the currency of the subsidiary company is the same as that of the parent company. This is the default setting. |
|
Parent uses different base currency. |
Select this if the base currency in this subsidiary company is different to the base currency in the parent company. Select the subsidiary's currency from the drop-down list. Note: The drop-down list displays the currencies set up in the parent company. The currency of the subsidiary company must be set up in the parent company. If you do not select the correct currency, inaccurate postings will be made to the parent company. |
Link your nominal accounts to the parent company. Each nominal account in the subsidiary company must be linked to a nominal account in the parent company. There are three ways you can do this:
From the Consolidations tab in the Nominal Ledger Settings, select Apply defaults to create the links to the nominal accounts in the parent company automatically. The nominal accounts in your subsidiary company are linked to a nominal account in your parent company (with the same account code).
Select Use default cost centre to link to the cost centre you have created in the parent company to represent the subsidiary company. Select the cost centre from the Default cost centre drop-down list.
Sage 200 then automatically assigns consolidated nominal accounts, based on this cost centre. Your chart of accounts in the parent company must match the chart of accounts in the subsidiary company.
Use Amend Report and Consolidation Settings to view the linked nominal accounts and to make any necessary changes.
| Nominal account for the Newcastle subsidiary | becomes | Suggested default consolidation account | ||||||
|---|---|---|---|---|---|---|---|---|
|
Rent |
16100 |
AAA |
ADM |
Rent |
16100 |
NEW |
AAA |
|
If no cost centre is specified, the suggested default consolidation account is the same as the subsidiaries nominal account.
| Nominal account for the Newcastle subsidiary | becomes | Suggested default consolidation account | ||||||
|---|---|---|---|---|---|---|---|---|
|
Rent |
16100 |
AAA |
ADM |
Rent |
16100 |
AAA |
ADM |
|
This overrides any existing consolidated account codes assigned to your subsidiary nominal accounts.
If at a later date you decide not to consolidate the ledger and clear the Employ Consolidation setting, the system will remove the default consolidation accounts from the subsidiary company's nominal accounts.
Select the required consolidated account on each nominal account record. You can do this as you create each new account using Enter New Account or by amending each nominal account. Select the required nominal account from the Consolidated Account drop-down list.
The Amend Report and Consolidation Settings window displays a list all of your nominal accounts.
Select the consolidated account for each one.
Note: If the linked nominal account does not exist in the parent company, or the nominal account in the subsidiary is not linked, the values will be posted to the Suspense account when consolidation takes place.