Simulate Company Consolidation – A summary of the activity

This activity allows you to create a simulation of the consolidation process for a group company or business segment or alternate segment. Consolidation can be termed as aggregation of balance available in multiple finance books of a company in the “Consolidation” finance book. This consolidation would give a comprehensive insight as to the financial performance of the company or the segment.

This activity allows you to aggregate the balances available in the ”Posting” finance books of a company or a child company to arrive at a consolidated financial performance of a company, business segment or alternate segment. Financial entries will not be posted after the simulation of the consolidation process. You can simulate a consolidation process of a selected financial year or financial period.

Consolidation is usually done in the base currency of the parent company. You can simulate the consolidation of a child company in either the base currency or the parallel base currency of the parent company. However, if the base currency of parent company and child company is different you can convert the balances with the help of the exchange rates.

This activity also allows you to define the exchange rates that can be used for converting the account balances after the simulation. You can enter an exchange rate for each group to which the account belongs or for each layout heading to which account belongs. This activity also provides you the facility to use different exchange rate types for each of the account groups / layout heading. The system retrieves the respective rates based on the account group and the user can modify the same.

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