Entity process

An entity is a legal entity. Commonly, this is an association, corporation, partnership, proprietorship, trust, or individual that has legal standing. It has legal capacity to enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued in its own right, and to be held responsible for its actions.

This high-level procedure describes how to prepare an entity statement:

  1. Set up the entity parameters with required data.
  2. If the entity currency has changed compared to the last period, maintain the rate with which all past data is calculated. For example, if a country joins the European Economic and Monetary Union, all past data that was reported in the country's currency must be converted into Euro. The current data must be reported in Euro.
  3. Maintain the entity's profit margins towards all intercompanies. Consolidation processes consume this information at a later stage.
  4. Run the Carry Forward Schedules and Rollover Journals processes to ensure that the closing balance of the previous period matches the opening balance of the current periods. Additionally, ensure that schedule details data is aligned with finance and segment data.
  5. Import data from the source system or Infor Data Lake, or specify data manually. Ensure that assets and liabilities balance.
  6. If any adjustments are required, post journals.
  7. Reconcile the intercompany relationships. That is, reconcile the data with the entity's intercompanies. Before you do that, you must maintain the standard and historical exchange rates because the intercompany reconciliation requires the group currency.
  8. To have the correct final cash flow statement, perform all previous steps and ensure that the cash flow is based on the latest balance sheet information.