Update Parent Company with Consolidation Transactions

Outcome

Budget Transactions

The parent company's budget is updated with transactions from the subsidiary's budget with the same year, period, budget number and budget version.

General Ledger Transactions

A voucher with the consolidated balances for each subsidiary is created. The accounts used to post the transactions are the ones included in the consolidation proposal.

If the consolidation currency is the local currency of the subsidiary, the offsetting account is retrieved from 'Settings – Parent Company' (GMS090). If the consolidation currency is the local currency of the parent company, the offsetting account is retrieved from 'Settings – Transfer of General Ledger' (GMS015).

If the 'Consolidation conversion method' check box is selected for the subsidiary in 'Subsidiary. Open' (GMS320) and there were any exchange rate differences when converting the consolidation transactions to the parent company's currency, those differences are posted with a separate revaluation voucher. The account used for the revaluation voucher is the account specified in (GMS090).

For a further description of the outcome, see Managing Group Consolidation.

Before you start

• The subsidiaries must have created and transferred approved consolidation figures to the parent company in 'Consolidation Proposal. Create/Transfer' (GMS200).
• The budget transactions to be received must be in a budget with the same year, period, budget number and budget version as the parent company's budget.
• FAM function GM01 must be registered in 'FAM Function. Open' (CRS405).

Follow These Steps

1. Start 'Consolidation Proposal. Update' (GMS320).

   The consolidation proposals transferred from each subsidiary are displayed with the following information: the ID of the subsidiary in the accounting strings; the date when the proposal was received; the date when the proposal updated the parent company's general ledger along with the voucher number and voucher number series; the date when a revaluation voucher was created and the voucher number and voucher series used; and the name of the application the consolidation refers to (general ledger or budget application).

2. Select option 8='Create consolidation voucher' for a proposal with general ledger balances to update the general ledger of the parent company.

3. If the cumulative conversion method for balance sheet accounts was selected for the subsidiary in 'Subsidiary. Open' (GMS090), select option 9='Create revaluation voucher' to post any exchange rate differences that may have occurred during the currency conversion to the parent company's currency.

   For more information on the cumulative conversion method, see Register Subsidiary for Parent Company. The account for exchange rate differences selected for the subsidiary in (GMS090) is used to post the differences.