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The Account Register and the Consolidation Module

The Account register is available in the Consolidation module. For each Account in the Daughter Companies, you should consider one field and one check box.

Consolidation Acc
Use this field to establish the relationship between each Account in a Daughter Company and one in the Mother Company. Once you have done this, when you produce a consolidated report from the Mother Company, the balance of each Account in the Daughter Companies will be added to the balance of the Mother Company Account to which it has been linked. This calculation occurs when the report is produced: no posting between Companies will take place.

In each Daughter Company Account, specify here the Mother Company Account to which it is to be linked. More than one Daughter Account can contribute to the balance of a single Mother Account. If this field is blank, the Mother Account with the same Account Code as this one will be used. If a non-existent Mother Account is entered, or if this field is blank and the Account Code of this Account does not exist in the Mother Company, the balance from this Account will not be included in the consolidated reports.

If you need to produce consolidated reports but find that the requirement to have the Mother and Daughter Companies in the same database is not practical, you can use the 'Consolidation' Export function to export Transaction information from a Daughter Company to a text file. You can then import this text file to the Mother Company. If you are using this Export function, enter here the Mother Company Account that is to receive the balance for this Account. If this field is blank, the Mother Account with the same Account Code as this one will be used. If a non-existent Mother Account is entered, or if this field is blank and the Account Code of this Account does not exist in the Mother Company, a new Account will be created.

Reduce Minorities
When you produce consolidated reports from the Mother Company, the balance of the Daughter Company Account is added to that of the Mother Company Account specified in the Consolidation Acc. field above. If the Daughter Company is not wholly owned by the Mother, you might only want a percentage of the balance of the Daughter Company Account to be added to that of the Mother Company Account. If so, check this box. The percentage is taken from the Main Owner Percentage register.

Note that if this box is not checked, the whole balance of this Account will be included in consolidated reports, even if there is a record in the Main Owner Percentage register. This can be correct, depending on the type of the Account and on local legislation.

This check box and the Main Owner Percentage register are also taken into account by the 'Consolidation' Export function. The balance for each Account that is exported will be reduced to the correct percentage for Accounts whose Reduce Minorities box has been checked.
If you need to check that you have correctly linked every Daughter Company Account to a Mother Company Account, and that the Reduce Minorities check box is correct in every Account, produce a Consolidation Chart of Accounts report from the Daughter Company.