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GL Consolidation

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GL Consolidation

GL Consolidation

Consolidation:
Consolidation is functionality in the General Ledger module that allows you to combine/consolidate Accounting/Financial results of multiple companies from multiple set of books (SOB), Currencies, Calendars & Accounting flexfield structures.
In other words, Consolidation is a period-end process of combining the financial results of separate subsidiaries with the parent organization to form a single, combined statement of financial results.


Consolidated data is required at the end of year usually when companies prepare their   balance sheets.

Overview of Consolidation:

  • Consolidation of companies within a Set of Books
  • Consolidation of companies across multiple Sets of Books in the same instance
  • Consolidation of companies across multiple Sets of Books across multiple instances.
  • Accounting for some companies is maintained in non-Oracle applications
  • Same or Different Charts of Accounts
  • Balances or Transactions
  • Same or Different Calendar
  • Same or Different Currency
  • Balance Type
    • Actual/Translated
    • Budget
    • Statistical

Consolidation Steps:

  • Create Consolidation mapping: parent and subsidiary sets of books
  • Post all Journals in subsidiary set of books
  • Revalue foreign currency balances in subsidiary sets of books
  • Translate subsidiary balances to the functional currency of parent set of books
  • Run and review trial balance report
  • Transfer data from subsidiary to parent
  • Run Journal import
  • Post the consolidation journal in parent set of books
  • Eliminate inter company balances
  • Run trial balance and other financial reports

Consolidation Tools:

To consolidate financial information of the businesses two consolidation tools are there i.e.

  • FSG (Financial Statement Generator)
  • FSG is used to consolidate financial information for businesses using single ledger as well as businesses using different ledgers that share the same Chart of Accounts & Calendar.

  • GCS (Global Consolidation System)
    As name itself says, GCS is used to consolidate financial information for different Financial Systems & Geographical locations, multiple ledgers including both owned application & legacy application.

Example:

Below mentioned diagram is the example of Consolidation for Multiple countries i.e. U.S, Norway & India where Set of Books for multiple countries are consolidated.

gl-consolidation


Bharti Patil

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