Elimination and Adjusting entries using Reporting Ledgers for Consolidation Accounting in Microsoft Dynamics GP and Management Reporter.

How to use Reporting Ledgers for Consolidation Accounting in Dynamics GP and Management Reporter.

When a business is operated as a parent company with subsidiaries, separate accounting records are kept for each entity. Investments in Subsidiaries, Dividends, Transfer Pricing, Intercompany Transactions, etc., require Elimination and Adjusting entries for consolidation. These entries are only for consolidation and are not posted to an entities books and records (General Ledger). The challenge is where to record elimination entries to provide a reliable audit trail and internal controls.

Given the many challenges, you can successfully leverage an investment in Dynamics GP to record and manage elimination entries to facilitate the Consolidation Accounting process with the use of Reporting Ledgers.

Reporting Ledgers in Dynamics GP and Management Reporter

Reporting ledgers were introduced with the release of Dynamics GP 2010. Reporting Ledgers provide 3 financial ledgers, the general ledger (BASE) and two optional reporting ledgers. This allows for the separation of financial adjustments (Statutory adjustments, Eliminations, Transfer pricing, etc.) from the general ledger.

Organizations would add separate accounts or maintain separate company databases to separate management reports from published financial statements for these types of adjustments before reporting ledgers.

The purpose of the White Paper, “Eliminations and Adjustments using Reporting Ledgers in Microsoft Dynamics GP® and Management Reporter”, the 3^rd White Paper in the Consolidation Accounting Series for Dynamics GP, is to provide design concepts for performing Elimination and Adjusting entries using Reporting Ledgers for Consolidation Accounting in Microsoft Dynamics GP and Management Reporter.

Turning On Reporting Ledgers in Dynamics GP

• Elimination and Adjusting Entries
• Consolidation Scenario
• Parent Company Elimination and Adjusting Journal Entries

Management Reporter Consolidated Financial Statements

• Management Reporter Consolidated Balance Sheet Building Blocks
• Management Reporter Consolidated Income Statement Building Blocks
• Transfer Pricing and Reporting Ledgers
• TIPS

Summary

Managing elimination entries for multiple subsidiaries requires more than just a link to an Excel spreadsheet. With the increased focus on audit trails and internal controls for SOX compliance, Dynamics GP’s addition of Reporting Ledgers provides the needed controls for Consolidation Accounting.

This white paper is intended for Accounting and Financial users and consultants that are responsible for producing consolidated financial statements in Dynamics GP and Management Reporter.

Request a free copy “Eliminations and Adjustments using Reporting Ledgers in Microsoft Dynamics GP® and Management Reporter”