Hello Hasan,

I wanted to know when I do the consolidation should I not have a seperate Consolidated Ledger and also a seperate value in the balancing segment - and say call it as Parent. Otherwise how will I distinguish consolidation entries in the Parent ledger and run reports and Trial Balance for consolidation only. Would it not become messed up if I do not have them seperated so that there are no entries in the Parent ledger other than consolidations.

Please let me know the details with examples as soons as you can. I went through your videos twice.

Thanks,

Arun

Hello Hasan,

Further to my querry on Consolidation please refer to the
"Creating segment values for Elimination scenario" Videos 4 where you explained how to use an eleimination set where there is no intercompany segment. But if there is an intercompany segemnt how will you do the same - what will be your source and target. Can you please give an example the same way you showed in your video? I will give the example that is ahowed in the video below.

Source Target

.40001. 90..

Thanks,

Arun

You can run consolidation transfer of data to a separate consolidated ledger as well as to the parent company's ledger as explained in my videos. Each subsidiary is represented by a separate balancing segments in the parent ledger therefore entries could be distinguished easily. Also check elimination videos which also touch in this topic.

Elimination concept videos gives an example of how subsidiary data is represented in the parent ledger.

The intercompany segement is optional and it tells you which company traded with which.
For example, lets say company 01 purchased services from company 02.
You can enter following journal:
COA STRUCTURE: COMPANY-ACCOUNT-INTERCOMPANY
DR: 01-EXPENSE-00
CR: 02-REVENUE-00
The intracompany balancing rules will add following two lines:
DR: 02-IC REC-01
CR: 01-IC PAY-02
See how intercompany segment shows the other partner.
I will discuss more on intercompany segment in intercompany videos.
Now lets come back to elimination. Whether the intercompany segment has been used or not, it does not matter. The intercompany journals as a whole needs to be eliminated.
The following journal needs to be eliminated:

DR: 01-EXPENSE-00
CR: 02-REVENUE-00
DR: 02-IC REC-01
CR: 01-IC PAY-02
Elimination:
CR: 01-EXPENSE-00
DR: 02-REVENUE-00
CR: 02-IC REC-01
DR: 01-IC PAY-02

Hello Hasan,

I went through videos again but I need some clarification. What I found from doing consolidation is you can actually run consolidation again for the same set of entry. Nothing prevents you from posting it again. In other words there is a big risk that you may consolidate entries twice or thrice if you are not really careful.I want to know how can I prevent consolidation of entries which have already been included. Also is there any way to do incremental consolidation? This is very important. can you please elaborate?

Please let me know whether I am getting the concepts wrong.

Thanks,

Arun

Hello Hasan,

Regarding the elimination entries - shouldnt' the Company be an elimination Company rather than 01 & 02? Please let me know.

Thanks,

Arun

An accountant can enter one journal twice, by mistake. The system will not prevent this from happening. Business procedures layer provide the protection. Double entries could always be reversed.

Sorry I did not quite comprehend your question. Use of elimination company is optional.