The Account Register and the Consolidation Module
This page describes preparing records in the Account register for use in consolidated reports.
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The Account register is available in the Consolidation module. Working in the Daughter Companies, you should consider one field and one check box in each Account record.
- Consolidation A/C
- Use this field to establish the relationship between an Account in a Daughter Company and one in the Mother Company. When you produce a consolidated report from the Mother Company, the balance of the Daughter Company Account will be added to the balance of the Mother Company Account to which it has been linked. This calculation will occur when you produce the report: 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. You can link more than one Daughter Account to a particular Mother Account. If you leave this field blank, the Daughter Account will be linked to the Mother Account with the same Account Number. If you enter a non-existent Mother Account, or if you leave this field blank and there is no Mother Account with the same Account Number, the balance of the Account will not be included in consolidated reports.
- In a multi-layered Company structure (e.g. a Daughter Company has its own subsidiaries or "Grand-Daughters"), the Grand-Daughter Accounts should be linked to Daughter Accounts, and the Daughter Accounts should be linked to Mother Accounts. If the links between Grand-Daughter and Daughter Accounts are broken, the Grand-Daughter Accounts will not be included in consolidated reports. If the links between Daughter and Mother Accounts are broken, the Daughter Accounts and the Grand-Daughter Accounts will be excluded from 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. In the Mother Company, a Transaction will be created in which the balance of each Daughter Account will be posted to a Mother Account. Use this field in a Daughter Account to specify the Mother Company Account that is to receive the Account balance. If you leave this field blank, the Mother Account with the same Account Number will be used. If you enter a non-existent Mother Account, or if you leave this field blank and there is no Mother Account with the same Account Number, a new Account will be created in the Mother to receive the balance.
- Reduce Minorities
- When you produce consolidated reports from the Mother Company, the balance of a Daughter Company Account will be added to that of the Mother Company Account specified in the Consolidation A/C 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, tick this box. The percentage will be taken from the Main Owner Percentage register.
- Note that if you do not tick this box, the full balance of the 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 will also be taken into account by the 'Consolidation' Export function. In the export file, the balance for each Account in which you have ticked the Reduce Minorities box will be reduced to the correct percentage.
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.
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