Consolidation definitions are used to transfer consolidation data from your subsidiary ledger to your parent ledger. When you create your consolidation definition, you specify a subsidiary and parent ledger and a chart of accounts mapping that maps each ledger's chart of accounts.
When you subsequently transfer amounts from a subsidiary to your parent, General Ledger creates an unposted consolidation journal batch in your parent ledger based on the consolidation definition.
Additional Information: If you want to change how a subsidiary consolidates to your parent, change the subsidiary's chart of accounts mapping before you transfer the data.
After defining a consolidation definition, you can group multiple consolidation definitions into a consolidation set. You can then transfer the consolidation set to your parent, rather than transferring each subsidiary's data separately. See: Creating Consolidation Sets.
Prerequisites
Define your chart of accounts mapping to map your subsidiary and parent ledger chart of accounts. For more information, see Consolidating Ledgers with Different Charts of Accounts.
Define your parent and subsidiary ledgers. If you have average balance processing enabled, determine if the parent ledger needs to be a consolidation or non - consolidation ledger.
To define a consolidation definition, perform the following steps.
Navigate to the Consolidation Definition window.
Enter a Consolidation name and Description.
In the Consolidation Attributes region, enter the Parent ledger name.
Enter the Currency to use for the consolidation as follows:
If you are consolidating balances, enter the parent's ledger currency. Optionally, enter STAT to consolidate statistical balances.
If you are consolidating transactions, enter the parent's ledger currency. This must be the same as the subsidiary's ledger currency.
Note: If your subsidiary ledger's currency is different from the parent ledger, you can use the subsidiary ledger's reporting currency (journal or subledger level) to transfer data directly from the reporting currency to the parent ledger.
Enter the name of the Subsidiary ledger you are consolidating.
Choose a chart of accounts Mapping.
Choose a consolidation Method.
Balances: Consolidate actual, average, translated, budget, or statistical balances. This method does not include journal entry detail. If you have average balance processing enabled, your parent should be defined as a consolidation ledger with average balances enabled. Note that you are consolidating average balances.
Transactions: Consolidate actual journal entry detail from a subsidiary ledger. You can use this method only if both ledgers have the same ledger currency. You cannot use this method for budgets. If you have average balance processing enabled, your parent should be defined as a non - consolidation ledger with average balances enabled. Note that you are averaging balances once you consolidate detail from your subsidiaries' ledgers.
If you have average balance processing enabled, select a default Usage type from the poplist.
Standard: Only standard balances are transferred to the parent ledger.
Only average balances are transferred to the parent ledger.
Standard & Average: Both standard and average balances are transferred to the parent ledger.
Additional Information: You can create separate consolidation definitions for standard and average balances. This is helpful if you want to use different chart of accounts mappings to get different levels of detail. For example, you might map standard balances so you can view consolidated totals for each cost center within each company. However, you might map your average balances so you can view consolidated details for each cost center.
Note: If you choose Transactions as your consolidation method, General Ledger enters Standard as the Usage type. You cannot override this when you transfer your subsidiary data.
Select your consolidation run options. See: Consolidation Run Options. You can override these options when you transfer your subsidiary data.
(Optional) Select the Enable Security checkbox to apply definition access set security to your consolidation definition.
Definition access sets are an optional security feature that enable you to control access to your General Ledger definitions. For example, you can prevent certain users from viewing, making changes, or using your consolidation definition when you assign them to consolidation sets or use them to transfer consolidation data.
If you do not enable security, all users will be able to use, view, modify, and delete your consolidation definition.
If the Assign Access function is available for your responsibility, the Assign Access button is enabled once you select the Enable Security checkbox. Choose the Assign Access button to assign the definition to one or more definition access sets with the desired privileges. For more information, see Definition Access Sets.
Save your work.