How do I perform 'Consolidation' in AX ?
Consolidation is simply gathering transactions from several company accounts into a single set of company accounts (Consolidation). We can't post daily transaction in consolidation company.
To perform a Consolidation process,
- First,we need to create a New Legal Entity for consolidation
- tick the "Use for Financial Consolidation Process" in General Tab
- set up the consolidation company as set by subsidiary company. Like chart of accounts,currency, exchange rate
- when you are setting up Main Accounts for subsidiary company. Specify the consolidation company Main Account no. in subsidiary company main account
- once all the subsidiary main account is linked to the consolidation company main accounts. You can perform daily transaction in Subsidiary company but not in consolidation company
- now come to Consolidation company & perform Online Consolidation in periodic tab
- select the main account criteria & tick use consolidation account. Enter from & to date in Consolidation period. Tick include actual amount & perform FX revaluation
- add the source company or Subsidiary company in legal entities. Percentage of company share.
There are two type of subsidiary company:
An integrated subsidiary is one in which the parent actively participates in the subsidiary’s operating, investing, and financing activities.The parent’s exposure is the same as if it had directly undertaken the transactions of the foreign operation.
A self-sustaining subsidiary is one that operates independently of the parent. Although the parent controls the subsidiary, it does not actively participate in the subsidiary’s operating, investing, and financing activities. The parent’s exposure is limited to its investment in the foreign operation.
Also,there is two kinds of system account for AX consolidation exchange rate differences need to be created
- Profit & loss account for consolidation differences
- Balance account for consolidation differences
Posting-Type “Profit & loss account for consolidation differences” used for “integrated foreign subsidiaries”
Posting-Type “Balance account for consolidation differences“ used for “self-sustaining subsidiary”
Source reference: AX Documentation Application and Business Process (prepare a consolidated company for a consolidation) If the company has integrated foreign subsidiaries, select an appropriate account for the Profit & loss account for consolidation differences value in the posting type field.
If you are consolidating a self-sustaining subsidiary or a company that contains the results of several self-sustaining subsidiaries, (and you are using translation methods to consolidate this data), select an appropriate account for the Balance account for consolidation differences value in the Posting type field.
About the Author
With 13 years of experience in ERP, specialising in AX functionality across versions , Solution designing ,Project Management and delivery.
Rohan also has special interests in reading about new business processes and features along with understanding their viability. He also enjoys spreading this message across through his blogs.