Today i perform the consolidation in AX 2012 first time, and before doing the consolidation i go through the manual and after doing the consolidation i have following doubts, if anyone can clear that:
On the Consolidation form following field:
Use Consolidate account field for what purpose we are using.
On Financial Dimension: Segment order, how i have to define the number and what is the difference between in Dimension and Group dimension in the drop down list.
on the legal entity tab “account type of conversion differences”, we have two P&L and balance type what is this and why we are using these field.
What is elimination. if possible can explain with some example.
The transactions and balances are transferred to the Consolidated company ledger account that is specified in each
subsidiary ledger account in the Consolidation account field in each company.
The dimension value that is entered in the Group dimension field in the Dimensions form of the subsidiary is the
consolidated company dimension value that receives the subsidiary dimension amounts
If you are consolidating subsidiaries that use foreign currencies, in the Account type of conversion differences field, specify whether consolidation exchange differences are posted to a balance account or to a profit and loss account in the consolidated legal entity
Transactions that occur between legal entities that are part of the same organization must be eliminated, because consolidated financial statements must include only transactions between the consolidated organization and other entities outside that organization.
Predefined elimination rules create elimination transactions in a company specified as the destination company for eliminations. You can generate the elimination journals during the consolidations process or by using an elimination journal proposal
For example inter company purchases and sales transactions.
first and third point is clear, if we are using the different COA for the subsidiary and the Consolidation company, in the subsidiary company we have to map the ledger account with the consolidation company ledger account. In this case we will check mark “use consolidation account” while running the consolidation.
Second point is not clear, what is the difference in the group dimension and the dimension. And in segment order what value to put. As i run the consolidation by selecting the “Group dimension” and in the segment order i put 1,2,3,4 and 5 (as in the Financial dimension form i define the same 5 Dimensions what i am using in subsidiary) and run the consolidation. And when i try to pull out the report based on the dimension it was showing blank. Then again i run the consolidation by selecting “dimension” and then run the reports it was coming fine. But here the values which i put 1,2,3,4,5 is not clear, on what basis we are putting.
After performing the consolidation and elimination, does this consolidation and elimination make any changes in the data of the subsidiaries.
For consolidation do i have to create the new company for every consolidation per year or i can just create the one company and every year in the same company i can make the consolidation and close the financial year.
first and third point is clear, if we are using the different COA for the subsidiary and the Consolidation company, in the subsidiary company we have to map the ledger account with the consolidation company ledger account. In this case we will check mark “use consolidation account” while running the consolidation.
Second point is not clear, what is the difference in the group dimension and the dimension. And in segment order what value to put. As i run the consolidation by selecting the “Group dimension” and in the segment order i put 1,2,3,4 and 5 (as in the Financial dimension form i define the same 5 Dimensions what i am using in subsidiary) and run the consolidation. And when i try to pull out the report based on the dimension it was showing blank. Then again i run the consolidation by selecting “dimension” and then run the reports it was coming fine. But here the values which i put 1,2,3,4,5 is not clear, on what basis we are putting.
Group Dimension field - Consolidated financial statements.
Example :
We have 3 companies , Each company has the Dimension
Department code - HR , Recruitment , payroll are dimension values
when it comes to consolidate company we need less detail than what exists in each company. So create Dimension
Department - Administration is the dimension value in Consolidation company.
This we call it as Group Dimension and this field can be used instead of Dimension all dimension values.
companies have dimensions broken down in to detail HR, Recruitment, payroll. When consolidation is performed , all of this are rolled up in to one – Administration. We would enter Admin in the Group dimension field for all dimensions in Consolidated company.
Means in “Group Dimension” all the dimensions defined in the Subsidiary companies club or consider as one and transfer & add the values based on the ledger Account number. Then what is the Difference in None and Group Dimension, i think the same happen if u choose the None. And what are the segment values, currently in all the subsidiary i am using the same Dimension what if use the different dimension in all the subsidiary.