Consolidation - COA mapping

Latest Axapta / Dynamics AX FAQ Pages

Get our Free Newletter

Don't you have the time to be online here at DUG every day? So how do you follow what is going on in the Dynamics industry and community?
If you subscribe to the DUG Newsletter then you can relax! We will make sure that you don't miss the big news!

Check out our
Newsletter Subscription Center
page a complete list of our different newsletters.

Solution (Not Verified) This post has 0 verified solutions | 10 Replies | 4 Followers

737 Posts
8,885 Points
Joined: 2007-9-25
Last Online:
2014-5-25 18:34
ameen posted on 2012-9-9 12:14

Hi ,

Client needs the consolidation , at present they have 4 companies having different  COA structure.

a) For consolidation do they need to have the same COA sttucture ?

b) Where we need to configure the consolidation account in each company to post the transaction ( Debit / Credit ) to consolidation company ?

Please guide me.

All Replies

188 Posts
3,648 Points
Joined: 2011-3-20
Last Online:
2014-9-9 15:11
Location: Wuerzburg Germany

Hi Ameen,

a) It is not required to have the same COA structure

b) You can specify the consolidation account in the COA setup - there is a special field available.

Are all companies using the same currency? If yes ok, otherwise the standard consolidation features might not be sufficient.

Hope it helps,

Ludwig

737 Posts
8,885 Points
Joined: 2007-9-25
Last Online:
2014-5-25 18:34
ameen replied on 2012-9-9 17:50

Thanks Ludwig,

Ludwig Reinhard:

b) You can specify the consolidation account in the COA setup - there is a special field available.

you mean to say that i need to create the Consolidation company and COA , then Consolidation account need to define in the each company -COA .

Is it correct ?

Ludwig Reinhard:

Are all companies using the same currency? If yes ok, otherwise the standard consolidation features might not be sufficient.

No , comapnies are using different currencies .  what is the solution ?

188 Posts
3,648 Points
Joined: 2011-3-20
Last Online:
2014-9-9 15:11
Location: Wuerzburg Germany
Suggested by AdamRoue

Hi Ameen,

In AX2012 and AX2009 you can identify a field 'consolidation' account in the COA of each company that you want to consolidate. Enter the consolidation account there. Thereafter, change to the consolidation company and start the consolidation process. Here you can decide whether a separate COA in the consolidation company exists that shall be used or whether you want to use the consolidation accounts specified at the different companies that are going to be consolidated. For details, check the standard AX training documents. They show you the two options available.

For the problem with the different currencies... unfortunately there is no solution available at the moment. You can either make an adjustment to the AX standard to identify and post foreign currency revaluation differences automatically or you use a separate financial consolidation software. I have not seen any company using the standard AX consolidation features - all used a separate software due to the complexity of this process.

Hope it helps.

Regards,

Ludwig

12 Posts
114 Points
Joined: 2008-7-24
Last Online:
2013-12-26 11:59
vamsi_praneeth replied on 2012-9-27 3:51

Hi Ludwig,

I have faced the same problem while running a consolidation for companies with 2 different currencies and yes I did run into the error of voucher imbalance. Is there a way to get out of this issue? Here are the steps that I have done while performing the consolidation in AX. I logged this issue with Microsoft and their suggestion (?) was to run a currency revaluation. I'm not sure how a foreign currency revaluation is related to this as this is a very basic problem in the system. Your inputs will be appreciated.

1)      Create a consolidation-elimination company with accounting and reporting currencies as USD.

2)      Create a company with SGD and another company with GBP. Reporting currencies should be USD for these.

3)      Perform an intercompany transaction between SGD and GBP for a value of 10,000 SGD.

4)      In the elimination rules in the consolidation-elimination company setup the accounts Intercompany payable and Intercompany receivable.

Run the consolidation in the consolidation company and generate an elimination proposal while consolidating the companies. You will find the same imbalanced voucher generated in the elimination company.

 

Thanks in Advance,

Vamsi Pranith

3 Posts
15 Points
Joined: 2012-9-27
Last Online:
2013-9-19 23:38
Location: Lafayette

in answer  to your questions  there are a couple questions you would need to answer.

are you just wanting to consolidate  financials   or   consolidate databases  so as to run one company.?

in general  yes  they should have the same coa structure.

But i would recommend that you look into a product  such as  CRG Company combiner.   it  can consolidate multiple companies into one operating database/company.  it also does all the  intercompany ar and payables along with   single reporting source of info.

there are a few other  nice features  about it  ,  i don't remember all the particulars  but   the link is here to their products.

http://www.crgroup.com/combiner.php

 

 

 

Female
1,025 Posts
11,109 Points
Joined: 2007-9-25
Last Online:
2014-6-18 5:15
lally replied on 2013-12-7 18:46

HI Vamsi ,

Did you find the solution ?

12 Posts
114 Points
Joined: 2008-7-24
Last Online:
2013-12-26 11:59
vamsi_praneeth replied on 2013-12-9 3:43

Yes Lally. The solution is to maintain either a cross rate in a way that GBP and SGD in result to the same value of USD. To achieve this, the best solution would be to maintain USD as a triangulation currency and maintain denomination currencies for USD to any other currency. This will potentially solve the exchange rate issue.

In any case, if you wish not to maintain the triangulation currency feature, the other option would be to perform a foreign currency revaluation in the consolidation legal entity and after that use the elimination rule.

Female
1,025 Posts
11,109 Points
Joined: 2007-9-25
Last Online:
2014-6-18 5:15
lally replied on 2013-12-9 4:02

vamsi_praneeth:
after that use the elimination rule.

Thank you for the reply.

I have some doubts regarding the elimination rule .

In my database i have 3 companies A,B , C and for consolidation purpose created one more company "D".

When these companies A, B, C some inter company transactions happened and these entries posted to following G/L accounts.

A1      B1    C1

A2      B2      C2

a) In which company i need to create the Elimination rule ?

b) which accounts i need to consider for elimination purpose ?

c) After consolidation process do i need to run the Elimination rule or before consolidation process ?

d) where i can see the elimination entries ?

Thanks in advance 

12 Posts
114 Points
Joined: 2008-7-24
Last Online:
2013-12-26 11:59
vamsi_praneeth replied on 2013-12-9 4:15

Elimination rules should be setup in the consolidation entity, in your case entity D. The accounts depends on what you are trying to do. If you are eliminating revenue and cost of sales, it should be those accounts and if you are eliminating AP v/s AR those should be the  accounts that you should be eliminating.

Generation of elimination entries depends on your requirement. If you have a case like I mentioned in the post earlier, then you might need to consider the elimination entries generation after the consolidation and running of foreign currency revaluation. if you don't have such a scenario, then simple make sure that you have the elimination rules mentioned on the elimination tab of the consolidation form.

You can see the elimination entries under General Ledger -> Journals -> Elimination. General journal transactions will also have the transaction type as elimination.

Female
1,025 Posts
11,109 Points
Joined: 2007-9-25
Last Online:
2014-6-18 5:15
lally replied on 2013-12-9 7:26
Thank you for the support .

when it comes to Consolidation in the Axapta  , we need to take the closing rate for balance sheet accounts and average rate for P& L accounts .
Can any one explain where we need to select the closing rate & average rate option while the consolidation process ?
Share me the path in Ax 2012.
 
Thanks and Regards


Page 1 of 1 (11 items) | Get this RSS feed | Bookmark and Share