- Consolidation vs Elimination companies. You need to remember that you CANNOT post any manual entries in a consolidation company. So if you do intent to use your consolidation company as your elimination company as well, keep in mind that you won't be able to manually post eliminations. Also, a company cannot be deleted from AX 2012 (although it can in previous versions of AX), make sure to think about your consolidation structure before creating those entities in AX.
Once the entity is created, you will need to flag the company as consolidation entity or elimination entity or both. For that go to Organization administration > Setup > Organization > Legal Entities. Under the General tab you will find two flags "Use for financial consolidation process" and "Use for financial elimination process".
- Consolidation and open balances. If you have been using AX for several years but you just start to execute consolidation in AX, you will need to bring all your activity over in the consolidation company in order to get your open balances. The Online consolidation doesn't have an option to bring opening balances. Opening balances will be created once you execute the year-end close process. So if you do have data like me since 1994, you will need to close almost 20 years before getting your open balances for the consolidation numbers to be correct
- Rebuild balances during consolidation process. I suggest to un-check this option as AX will schedule a job to rebuild all dimension sets you have setup. However, if you don't consolidate at the dimension level, you don't need to rebuild all dimension sets. Also, you might have to run the consolidation several times before verifying the numbers and it's faster to execute the rebuild manually in that case
- Elimination during consolidation process. If you created a different entity for the elimination then this option will not be valid for you since the proposal should be created in the elimination entity and not in the consolidation entity. Also, it's always better to verify the elimination proposal before posting it. Finally, you might need to calculate fixed amount and modify your elimination rules based on the consolidation result before being able to execute the elimination rules.
This is some food for thoughts, I will soon post more details about the consolidation process and the currency conversion. Looking forward for feedback and reviews. Enjoy!
Thank you for the Post Caroline.
ReplyDeleteSeems to be you had done the good research on the consolidation. I had lot of questions in mind before read your post .After this most of my questions are cleared.
Still i have some questions as mentioned below , hope you would help me.
a) In the above post you mentioned that " Opening balances will be created once you execute the year-end close process. So if you do have data like me since 1994, you will need to close almost 20 years before getting your open balances for the consolidation numbers to be correct "
In which company we need to close the 20 years ?
Could you explain bit more ?
Could i know your suggestion that do i need to main the two companies like a) Consolidation b) Elimination company or in the same Consolidation company it self run the elimination entries also ?
Thanks in advance.
Hi Lally,
ReplyDeleteHere are my answers to your questions:
a) You will need to run the year-end close process in your consolidation company, assuming you already did in the original company where the data has been originally posted.
b) I selected to create 2 separate companies: one for consolidation and one for elimination. I did that because:
- I like to see the transactions separated, I can now run a trial balance from AX just with the consolidation numbers
- For reporting in MR, it is actually much easier to report on entities directly instead of transaction type
This is just a preference and having the consolidation and elimination entities being the same should work well too
I hope this answer your questions :)
Thanks,
Caroline.