Multi-Currency & Financial Consolidation

Defining the group structure

Financial Consolidation begins with Subsidiary Management on the SubsidiariesPage, where the parent-subsidiary company structure is defined. SamvraCore supports hierarchical, nested subsidiary relationships, so a group can be modelled with subsidiaries that themselves own further subsidiaries.

Each subsidiary is configured with several attributes that govern how it rolls up:

• Consolidation method — one of Full, Proportional, Equity, or None, determining how the subsidiary's figures are combined into the group.
• Ownership percentage — the share of the subsidiary held by the parent.
• Functional currency per subsidiary — each entity can keep its books in its own functional currency.
• Intercompany account mapping — accounts designated for elimination entries between group members.

These settings matter because a group is not simply the sum of its members. The consolidation method decides whether a subsidiary is fully combined, combined in proportion, accounted for under the equity approach, or excluded. The ownership percentage feeds minority interest calculations, and the per-subsidiary functional currency means figures must be translated into a common reporting currency during consolidation.

A typical setup is to register each legal entity as a subsidiary, assign its consolidation method and ownership percentage, set its functional currency, and map its intercompany accounts. With the structure defined, the consolidation runs can combine the entities correctly and eliminate internal activity.