Consolidating Ledger Records

Use the Ledger Consolidation utility to consolidate unconsolidated ledger records.

You can consolidate the ledger at the end of the year. When you select the Year End check box, the system posts CTA adjustment transactions to the ledger for the revenue and expense accounts.

These checks are performed:

The hierarchy is valid
The accounts map correctly
The unit codes map correctly
The currencies convert properly

The system uses the currency rate tables that are defined by each financial entity where the consolidation entries are being written. The translation is performed directly on data from the originating site's transaction.

Period totals are created, using the definitions at each entity additionally segregated by hierarchy.

As this utility runs, it creates a report of any exceptions, undoing only the affected ledger record and continuing with the remaining processing.

Before actually posting the transactions, you can run in Verify mode by not selecting the Consolidate check box.

Note: Before running this utility, you must specify a valid account in the CTA Account field on the General Parameters form at the corporate entity level; otherwise, an error message displays.

FASB 52 Compliance

To comply with FASB52 or GAAP standards, on the Chart of Accounts form, you must make sure the currency translation methods are set to Average for revenue and expense accounts and End for asset and liability accounts.

Note: This adjustment is necessary only when the ledger is consolidated in a multi-site setup where a subordinate entity's domestic currency is different from its parent entity's domestic currency, different account types are posted with different translation methods, and the exchange rates varies.