Consolidation Setup
Overview
GoldFinch can help companies consolidate subsidiaries at multiple levels using various base currencies.
To illustrate the process, these consolidation help pages are written for a fictitious US Holding Company (using USD) with three 100% owned subsidiaries operating in the US (using USD as the base currency), Canada (using CAD as the base currency) and Europe (using Euro as the base currency).
GL Ledger Setup
The following GL Ledgers must be set up.
GL Ledger Name | Ledger Type | Base Currency |
|---|---|---|
Actual-US | Actual | USD |
Actual-CA | Actual | CAD |
Actual-Euro | Actual | EURO |
Actual-CA (USD) | Converted | USD |
Actual-Euro (USD) | Converted | USD |
Elimination (US & CA & Euro) | Elimination | USD |
Parent (US & CA & Euro) | Consolidation | USD |
Elimination (US & CA & Euro)
GL Ledger with Elimination Ledger Type must have the same base currency as the parent. An elimination GL Ledger must be set up for each level of consolidation.
Actual-CA (USD)
GL Ledger with Converted Ledger Type must be set up to convert Actual-CA GL Ledger using CAD to USD because the parent company uses USD as the base currency.
Actual-Euro (USD)
GL Ledger with Converted Ledger Type must be set up to convert Actual-Euro GL Ledger using EURO to USD because the parent company uses USD as the base currency.
GL Accounts
Each subsidiary should have one intercompany GL Account set up to track Due To/Due From.
Field Name | Field Help |
|---|---|
Is Intercompany | It must be checked to be used in the intercompany transactions and later eliminations. |
Consolidate Rate Type | Default to Current since Due To/From GL Accounts are either Assets or Liabilities. You should use Historical for Owner’s Equity GL Accounts and Average for Income Statement GL Accounts. |
Accounts (Customers and Vendors)
Each subsidiary should have one account set up to track purchase and sell transactions.
Field Name | Field Help |
|---|---|
Is Intercompany | It must be checked to be used in the intercompany transactions. |
Default Receivable GL Account | Enter the Due To/Due From GL Account set up for the subsidiary |
Default Payable GL Account | Enter the Due To/Due From GL Account set up for the subsidiary |
Company Setup
The Cumulative Translation Adjust Account is used to record the currency transaction differences when converting a subsidiary’s financial information from its base currency to the consolidated parent’s base currency.
