Required Two balance sheets (Apr-Mar) and (Jan-Dec)

Finance and Operations/AX User Forum
1

Hi all,

I have a company in USA and another company in India. So I need two balance sheets ie, for India based company calender period is 01-Apr to 31-Mar and USA based company calender period is 01-Jan to 31-Dec. how can we map in dynamics Ax 2009?

Thanks in advance

Regards,

Satya.

2

Hi Satya,

I guess I want to consolidate the different financial statements, right?

There is no quick and easy answer to your question available as you need to consider the accounting regulations (typically) of the parent company. I am not sure whether this is your Indian or US company. So, ask one of the accounting guys first which accounting rules are applicable. I guess that some adjustments are required but this should be defined in the accounting regulations the parent company follows.

Hint: You can take a look at IFRS 27 Section 22 and 23 to get an impression of what that follow IFRS accounting standards have to do. (see e.g. http://ec.europa.eu/internal_market/accounting/docs/consolidated/ias27_en.pdf)

All the best,

Ludwig

3

Hi Ludwig,

You are correct. Thnaks for your reply,

The parent company is in USA. But I need the solution, How to map this screnario/work arround in MS Dynamics Ax 2009.

Thanks in advance.

regards,

satya

4

Are you using interompany?

In case of multi country operations, you need to close the books for company in one country and than you can use the balance information in another company/country.

For instance, Since Fiscal closes in Dec (U.S.), you have to close the books according to 31 Dec only. That means you have to reconcile accounts, inventory, Post Depreciation and other task as on 31 Dec and than you can use the balances and can make Financial Reports, this is complex task wrt accounts. User needs to be careful while performing this task.

However, it depends on the setup which you have made.

5

Hi Satya,

I assume that you need to generate a consolidated financial statement that includes your US and Indian company. If I am not wrong, US GAAP determines that the Indian company has to make a special ‘year-end close’, i.e. generate Balance Sheet and Income statement at the day when the US parent company makes its year end Balance Sheet and Income Statement. The accountants might also need to make some adjustments for the differences between Indian and US GAAP. But I believe that these issues are not your ‘problem’.

Once you have the Indian and US financial statements you have to consolidate them. Actually Dynamics AX has a consolidation functionality built in - maybe check the GL parameters and the training documents. But (!!!) do not expect too much from this consolidation functionality, as it is only a very very basic consolidation feature that cannot handle most consolidation steps properly, especially when it comes to questions how to treat foreign currency differences, how to deal with consolidation differences in future periods, etc. etc. etc.

If your customer has only two companies to consolidate, he might be faster to do the consolidation in Excel. If your customer has many other companies that he needs to consolidate and if the corporate structure is complex or changing often, I suggest that you use a special consolidation software for that purpose because you will never get happy with the consolidation features Dynamics AX offers … you only get ‘grey hair’ and lots of headache.

Hope this info helps.

Cheers,

Ludwig

6

Thanks Ludwig

Regards,

Satya