To create a consolidated set of financials, you will first need to create separate client files for each of the subsidiaries and the holding company.
Then create a new group client file. If you require the 4 column financials (Group CY/PY, Company CY/PY), select one of the Consolidation templates.
Open your Working Trial Balance:
Click on the Consolidate menu on the top right:
Select the entities to be consolidated, as well as the Company structure (Holding Company vs Subsidiary/Division - both are treated the same):
If you are consolidating foreign entities and would like to convert currencies, click on Display Rates on the bottom right, then go and enter the Spot and Average rates for the Year. If you are consolidating Prior year(s), enter the rates for those years accordingly. Spot rate for Balance Sheet, Average rate for Income Statement. (P Spot/Ave is Prior Year, P2 Spot/Average is Prior Year 2, etc)
Note: The translation reserve will automatically be inserted into your Trial Balance as well as the Equity section of your Statement of Financial Position.
A screen will pop up with a few options:
Include Prior Year/Prior Year 2 will consolidate those years as well. This shouldn't be necessary if you have rolled over and finalised prior years, but useful if it is the first engagement.
Monthly Management Accounts - if you are compiling consolidated monthly set of accounts.
Update Link of existing accounts - will update the links from the subsidiaries into the group Trial Balance. Not necessary if its the first engagement, but useful if you have changed the Link Codes in the subsidiaries during the current year and need to disclose accordingly.
Your Working Trial Balance will reopen, and you will notice 2 additional columns on the left: Client is the Hold/Sub entity's Trial Balance; h/s tells you if its from the Holding Company or a Subsidiary:
If you need to disclose items differently at Group level, simply go and amend any Link Codes.
When you run the financial statements, you will see the 4 columns, split between Group and Holding:
Don't forget that you will need to process Intercompany Elimination Journals. See the article on Journals for more information.
If a value changes in one of the subsidiaries and you need to refresh the Group Trial Balance, simply go back to Consolidate and Refresh Opening Balances.
