What to do with disparate COA Account structures in Consolidation
Consolidation accounting in Dynamics GP using different Chart-of-Accounts with very different numeric, or alpha, account code logic can present a challenge. Add in Non-Dynamics GP companies complicated by different industries, lines-of-business, and organizational structures only adds to this challenge.
What these situations all have in common is the requirement to map their accounts to a consolidated trial balance for financial reporting. Dynamics GP provides several options to manage the creation of consolidated financial statements.
The following options provide the opportunity to successfully manage the consolidation of all subsidiaries and a strategy to move more organizations into Dynamics GP over time.
Redesign the COA
Redesigning a current COA works if you have a good Chart-of-Accounts already and are only looking to add some additional consolidation logic. In these situations, Dynamics GP Professional Services Tools allow you to change the account number and merge existing accounts. These tools move all the history and default posting account setups to the new account. After you redesign the COA, you must reorient the accounts in your Management Reporter financial statements.
Companies not on Dynamics GP
What can be done with companies using non-Dynamics GP accounting systems? This is a challenge regardless of what software you choose to consolidate your financial statements. There are two options, use a Dynamics GP consolidation company, or use an Excel file to consolidate companies not running their accounting systems on Dynamics GP.
Creating Dynamics GP consolidation companies
Dynamics GP allows for the creation of unlimited separate company databases. Create a new Dynamics GP company for each subsidiary using a different accounting system. If you have many subsidiaries to manage, consider using one database for a group of companies. Monthly results are imported using the Dynamics GP consolidation company. This is one of the best options to manage the consolidation process!
Using Excel reports for each company
Importing the net change trial balance every month may be overkill for smaller subsidiaries. Management Reporter has the option to link to an Excel File for financial reporting consolidation of companies not using Dynamics GP. This is a great option when a subsidiary reports their period results in Excel already converted to the corporate consolidation account code.
Microsoft Dynamics GP and Management Reporter can be successfully designed to manage the consolidation process!
Request a free copy of “Consolidation design in Microsoft Dynamics GP® 2013 and Management Reporter® 2012” at https://unifiedbiz.com/consolidation-accounting/