If you have D365 ERP system, you probably have multiple companies and the need to publish consolidated financial statements.
The following process outlines how to perform Consolidate, Online to achieve a Consolidated Trial Balance.
1. Chart of Accounts.
Create a Main Account to store the Currency Translation Adjustment (CTA)
General ledger > Chart of accounts > Main accounts
Note: Your monetary accounts in your Chart of Accounts should be set to
Foreign Currency Revaluation = YES
and the appropriate settings assigned per your accountant's recommendation.
i.e. Most USA Balance Sheet Accounts use spot rates,
while P&L accounts use average rates,
and non-monetary accounts use historical rates.
2. Error Account
The error account in your consolidation company automatically records valuation differences between monetary accounts on the Balance Sheet vs Income Statement when foreign Currency Translation occurs.
Change companies to your consolidation legal entity (XC01)
I use C01, C02, etc for my consolidation Legal Entity (LE) naming convention, with a prefix "X" to sort to the end (and to provide a four character name for the LE.
Assign the CTA Main Account to the Error Account.
General ledger > Posting setup > Accounts for automatic transaction
3. Consolidation, Online
Consolidations > Consolidate, Online > Criteria (tab)
Choose a Description.
You can leave the Main Account section blank to choose all accounts
Use consolidation account is left off if you are using a single chart of accounts.
Fill in the FROM and TO dates with the period (i.e. From 5/1/2021 To 5/31/2021)
Obviously you probably want to set Actual Amounts to YES
The rest of the settings on this tab are optional.
Consolidations > Consolidate, Online > Financial dimensions (tab)
Number the Finanical Dimensions you want tp consolidate (start with number one)
Consolidations > Consolidate, Online > Legal entities (tab)
Select all the Legal Entities that are part of the consolidation
(List 100% or the actual percentage of the companies that you own)
Consolidations > Consolidate, Online > Elimination (tab)
Do not edit this tab, we will cover this topic in a future blog.
Consolidations > Consolidate, Online > Currency translation (tab)
If you do not have consolidations with foreign currency, you may skip this tab.
For each LE that has foreign currency (currency different than the Consolidation Companies accounting currency):
Choose the LE
Choose the LE's Source Accounting Currency
Choose range of monetary accounts that you wish to revalue
Choose the Exchange Rate type
Choose the Apply exchange rate from
Consolidation date, or
Transaction date, or
User defined rate
Consolidations > Consolidate, Online > Run in background (tab)
i usually like to set this to NO, thus I know when the consolidation is finished without having to look at batch jobs.
CLICK OK to automatically populate the Consolidation Company Trial Balance.
You have successfully performed Consolidation, Online.
You can now view your consolidated Trial Balance or generate financial statements with your reporting program.