When is Consolidation Needed - Summary

Common situations when the Consolidation application is needed:

• When you have multiple ERP (Enterprise Resource Planning) or GL (General Ledger) systems

• When you have multiple charts of accounts (with different account types across different entities)

• When operating in different countries with multiple currencies

• When you have multiple divisions or subsidiaries

• When you have complex or changing ownership or regulatory requirements

• When you have a need for IFRS or GAAP regulatory reporting

• When retained earnings need to be rolled forward to the next period

Consolidation Processing

The Consolidation Process runs conversions and other calculations for common currency, local currency, interim currency, and reporting currency all at once. For example, let’s say you wanted to post Eliminations, Dynamic Journals (in common currency), and Reclassifications. You will run the Consolidation Process, then Eliminations, and then the Consolidation Process again so that interim and reporting currency reflect the eliminated intercompany transactions.

Planful offers a User Defined Consolidation Process so that you can process local currency and common currency, post Eliminations and common currency adjustments (if any) and then consolidate interim and reporting currency.

User Defined Consolidation Process

Planful offers a User Defined Consolidation Process feature that allows users to configure and personalize the Close process. For example, users can balance books at local and common currencies during the Close process and require interim and reporting currencies get processed after Consolidation is complete. For Budget and Forecasts, users have the flexibility to run the Consolidation Process for specific financial years (period range) for the scenario versus all years.

Read all about the User Defined Consolidation Process in the Consolidation User Guide under the Custom User Defined Consolidation Process - What Is It and How Does It Work topic.