Tuesday, May 8, 2018

Dynamics NAV - How to Consolidate financials across multiple companies - Consolidation and Intercompany Overview

https://www.archerpoint.com/blog/Posts/consolidation-microsoft-dynamics-nav-what-it-does-and-doesn%E2%80%99t-do

https://docs.microsoft.com/en-us/dynamics-nav-app/accross-how-consolidated-company-reporting

  • Multiple Companies in NAV
    • Option 1 (If all companies are generally the same)
      • Multiple companies in the same database on the same server
        • Intercompany transactions and consolidations happen automatically between companies within the database
    • Option 2 (If companies require significantly different localization and customization)
      • Separate servers with separate companies in independent databases
        • Separate databases will require additional NAV server licenses
        • Intercompany transactions and consolidations must the exported and imported between servers using xml files that can be generated from NAV
  • Intercompany Transactions
    • Companies are linked by being setup as Customers and Vendors in other companies
    • G/L Accounts are mapped to an Intercompany Master Chart of Accounts
    • Purchases and sales can be created, and sent to other companies as required
    • Intercompany transactions are received by the receiving company and processed as required
  • Financial Consolidation
    • An additional "Consolidated Company" is created. This company is setup solely for consolidating financial data, and producing consolidated financial reports
      • It is possible to setup multiple "Consolidated Companies" to track smaller consolidations, that then roll up into a main Consolidated Company for structures that have multiple companies within divisions
    • Each subsidiary company is configured and linked to the Consolidated Company as a Business Unit
    • Each business unit's G/L accounts must be mapped to a standard Consolidated Chart of Accounts in the Consolidated Company (Mapping can be imported)
    • It is possible to re-consolidate past periods if G/L balances in a subsidiary company have changed
    • Subsidiary companies can have
      • Different charts of accounts
      • Companies with different fiscal years
      • Either the full amount or a specified percentage of a particular company's financial information
      • Different currencies
      • For each subsidiary, each Account can have different translation rates for the consolidation rules (Average, Closing, Historical, Composite)
  • Consolidated Reports
    • Consolidated G/L Trial Balances can be printed
    • Consolidated Account Schedules can be configured to display financial reports as required within each Consolidation Company

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