In this blog I will take you through the steps for running Consolidation in Microsoft Dynamics NAV 2016, for companies within the same database as the consolidated company.
Consolidation is combining the financial data of two or more separate companies (subsidiaries) into one consolidated company for financial reporting.
Below I outline the setups required to be completed for the Consolidation and the process of consolidating the data in Microsoft Dynamics NAV 2016.
Setting up the Consolidation
1. Set up a Consolidated Company
A new consolidated company needs to be set up first. You can use the ‘Copy’ functionality from the ‘Companies’ page in Microsoft Dynamics NAV, to easily create the consolidated company.
2.Set up Consolidation information on all G/L Accounts for each subsidiary company
Specify the Consol. Debit Account, Consol. Credit Account and the ‘Consol. Translation Method’ for all the G/L Accounts in Microsoft Dynamics NAV.
3. Setting up Business Unit Information
Set up a Business Unit for each subsidiary on the consolidated company.
4.Specify Exchange Rates for Consolidations
There are three exchange rates that the program uses when consolidating the financial data of subsidiary companies involving foreign currency, in Microsoft Dynamics NAV. They are Average Rate (Manual), Closing Rate and Last losing Rate.
5.Setting up Dimension Information for Consolidations on each subsidiary company
It is also possible to consolidate dimension information as well as G/L Accounts in Microsoft Dynamics NAV.
Only fill in the Consolidated Code field where the dimension value code in the subsidiary company is to be consolidated to a different dimension value code in the consolidated company.
Consolidating the data
Open the Business Unit page on the consolidated company and then click on Actions → Import Database. Specify the ‘Consolidation Period’, ‘Copy Dimensions’ ‘Document No.’ and the Business Unit Code. Then click on ‘OK’.
This function will import the financial data from the subsidiary and post it to the consolidated company automatically.
Processing Consolidation Eliminations
Any elimination entries will need to be calculated manually and posted using a General Journal.
Note: For more information on any field, hit on F1 and online help will be displayed for the field. You can ‘Search’ in Microsoft Dynamics NAV to locate any pages.