Multi-Currency & Financial Consolidation

Producing group financial statements

Consolidation Runs on the ConsolidationRunsPage process the consolidated financial statements, with a run lifecycle and the ability to delete runs. A run automatically generates intercompany elimination entries, performing multi-step elimination that covers both Revenue and Expense and Receivable and Payable pairings, so internal trading and internal balances are removed together.

Because subsidiaries may use different functional currencies, a run applies currency translation with rates appropriate to each figure type.

A run also calculates the Cumulative Translation Adjustment (CTA) that arises from these differing rates, and computes minority or non-controlling interest based on ownership percentages. The run moves through a processing status workflow of Draft, then Processing, then Completed or Failed.

The outputs are Consolidated Reports: a Consolidated Balance Sheet with subsidiary detail, a Consolidated Income Statement, a Consolidated Trial Balance, and an Elimination schedule. Consolidation Settings at the organisation level hold the default intercompany accounts, the reporting currency, and auto-elimination settings. A typical close is to confirm rates and intercompany matching, launch a run, let it eliminate and translate, and then review the consolidated statements once the run reaches Completed.