In AX2012 and AX2009 you can identify a field ‘consolidation’ account in the COA of each company that you want to consolidate. Enter the consolidation account there. Thereafter, change to the consolidation company and start the consolidation process. Here you can decide whether a separate COA in the consolidation company exists that shall be used or whether you want to use the consolidation accounts specified at the different companies that are going to be consolidated. For details, check the standard AX training documents. They show you the two options available.
For the problem with the different currencies… unfortunately there is no solution available at the moment. You can either make an adjustment to the AX standard to identify and post foreign currency revaluation differences automatically or you use a separate financial consolidation software. I have not seen any company using the standard AX consolidation features - all used a separate software due to the complexity of this process.
I have faced the same problem while running a consolidation for companies with 2 different currencies and yes I did run into the error of voucher imbalance. Is there a way to get out of this issue? Here are the steps that I have done while performing the consolidation in AX. I logged this issue with Microsoft and their suggestion (?) was to run a currency revaluation. I’m not sure how a foreign currency revaluation is related to this as this is a very basic problem in the system. Your inputs will be appreciated.
Create a consolidation-elimination company with accounting and reporting currencies as USD.
Create a company with SGD and another company with GBP. Reporting currencies should be USD for these.
Perform an intercompany transaction between SGD and GBP for a value of 10,000 SGD.
In the elimination rules in the consolidation-elimination company setup the accounts Intercompany payable and Intercompany receivable.
Run the consolidation in the consolidation company and generate an elimination proposal while consolidating the companies. You will find the same imbalanced voucher generated in the elimination company.
in answer to your questions there are a couple questions you would need to answer.
are you just wanting to consolidate financials or consolidate databases so as to run one company.?
in general yes they should have the same coa structure.
But i would recommend that you look into a product such as CRG Company combiner. it can consolidate multiple companies into one operating database/company. it also does all the intercompany ar and payables along with single reporting source of info.
there are a few other nice features about it , i don’t remember all the particulars but the link is here to their products.
Yes Lally. The solution is to maintain either a cross rate in a way that GBP and SGD in result to the same value of USD. To achieve this, the best solution would be to maintain USD as a triangulation currency and maintain denomination currencies for USD to any other currency. This will potentially solve the exchange rate issue.
In any case, if you wish not to maintain the triangulation currency feature, the other option would be to perform a foreign currency revaluation in the consolidation legal entity and after that use the elimination rule.
Elimination rules should be setup in the consolidation entity, in your case entity D. The accounts depends on what you are trying to do. If you are eliminating revenue and cost of sales, it should be those accounts and if you are eliminating AP v/s AR those should be the accounts that you should be eliminating.
Generation of elimination entries depends on your requirement. If you have a case like I mentioned in the post earlier, then you might need to consider the elimination entries generation after the consolidation and running of foreign currency revaluation. if you don’t have such a scenario, then simple make sure that you have the elimination rules mentioned on the elimination tab of the consolidation form.
You can see the elimination entries under General Ledger → Journals → Elimination. General journal transactions will also have the transaction type as elimination.
when it comes to Consolidation in the Axapta , we need to take the closing rate for balance sheet accounts and average rate for P& L accounts .
Can any one explain where we need to select the closing rate & average rate option while the consolidation process ?