Question

Group Consolidation - History

  • 22 March 2022
  • 1 reply
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Hello,

I am new to group consolidation and is working on an implementation. Have one question on consolidation history.

Assume my client goes live on IFS on 7/1 (They are on fiscal calendar). They plan to load 20 subsidiary’s GL balance for all 12 months into IFS prior to go-live. They will have one master consolidation company. What is the easiest way to input group consolidation for pre-IFS history?

Option 1

Load consolidated balance history from legacy to master company only from 7/1/2021-6/30/22 to IFS.

In master company start group consolidation in IFS after going live 7/1/22. 

 

Option 2

Load GL balance history of each entity from 7/1/2021-6/30/22 to IFS. Run group consolidation in IFS for historical balance each month from 7/1/21-6/30/22.  This is my client’s preference.

 

Option 1 is easy, but no drill down from master to reporting entity on consolidation query.

Option 2 will require lots of work but will allow user to drill down from master to reporting entity.

Is there any other option I have not thought about that will work better? If so, please advise.

 

Thank you so much

 

Lan

 

 

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1 reply

ThushanWij
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Hi,

As per my previous experience those 2 are the best options you can come up with. 

however, if there are foreign entities in your consolidation structure, I would think better to go with option 2 where you will be running the consolidation from the first period in the current financial year. 

Reason: most of the companies would prefer to have a monthly average rate to translate their income statement balances instead of having a yearly average rate. Therefore, if you start the consolidation from the golive date ( assuming it is not the beginning of the financial year) , you will not see the exact translated values, since monthly average rates cannot be used without having historical balances. 

If above concern is not a problem to the customer, I don’t see any other major concern on going with the Option 1 for your matter. 

Hope this was useful.. 

Thanks,

Thushan Wijayawickrama 

GCD

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