Financial Consolidations process:
3 steps to perform consolidation in Microsoft Dynamics Ax 2009.
I ) Consolidation company setup
II) Subsidiary company setup
III) Perform consolidation
I) Consolidation company setup:
Consolidation company creation: Consolidation designated company will not be available for any operational process except having consolidation entries posted in here.
Path: Dynamics Ax > Administration > Common Forms > Company accounts
GL Parameters setup:
Path: Dynamics Ax > General Ledger > Setup > Parameters > Ledger tab
Set value "Consolidated company accounts ' = True
Path: Dynamics Ax > General Ledger > Setup > Posting > System accounts
1. Balance account for consolidation differences
2. Profit & loss account for consolidation differences
Currency and Exchange Rates:
Path: Dynamics Ax > General Ledger > Setup > Exchange rates > Consolidate tab
The Exchange rates form displays an additional tab, Consolidate, when you select the consolidated company accounts field in the General ledger Parameters form. Closing rate field is used for balance sheet accounts and the value in the Average rate field is used for profit and loss accounts. Add exchange rates for each currency and specify 'Closing rate' & 'Average rate' for all currencies in this form (Overview tab will display all currencies, specify exchange rates & select each one of them and click Consolidate tab and consolidation rates).
Chart of Accounts:
Path: Dynamics Ax > General Ledger > Common Forms > Chart of accounts details
3. Closing (or) Average: Use Closing or Average options for utilizing rates specified in 'Consolidate tab' of the exchange rates form.
4. Historical : Use Historical to utilize exchange rates specified in the setup.
This process completes consolidation company setup for consolidations in Dynamics Ax 2009.
II) Subsidiary Company:
The subsidiary setup depends on chart of accounts setup, so following are possible alternative options.
Chart of Accounts Option 1: Identical Chart of Accounts
When this is the situation, the Consolidation account field is selected in the Consolidate Online form during the consolidation process to transfer the balances to the correct accounts.
Chart of Accounts Option 2: No Consolidated Chart of Accounts
In this scenario consolidated company does not have chart of accounts, here two alternatives to perform consolidation.
5. Enter a manual mapping on the Chart of Accounts in the subsidiary. This causes the mapped accounts to create automatically.
6. Do not enter any mapping. This causes the Chart of Accounts to be created in the consolidated company when data transfers from the subsidiary.
Note: This method is not appropriate for consolidation of a foreign currency subsidiary because conversion principles cannot be applied.
Chart of Accounts Option 3: Different Chart of Accounts
Having different chart of accounts in subsidiary & consolidated companies must be mapped to the consolidated company.
Map Chart of Accounts: (This process should be done for all subsidiary companies)
Path: Dynamics Ax > General Ledger > Common Forms > Chart of account details
Map Dimensions: (This process should be done for all subsidiary companies chart of accounts)
Path: Dynamics Ax > General Ledger > Common Forms > Dimensions
This completes subsidiary company setup and Consolidations. Please refer 'Financial Consolidations - Dynamics Ax 2009 (Part 2)' for next steps.
Note: This article has divided into 2 parts as first part describes about setup of consolidation & subsidiary companies and part 2 does contains 'Perform Consolidation' steps.