Consolidation can be run as frequently as required. Once the process is complete, you can log into the Consolidation Entity and run Consolidation reports.

Prerequisites

Ensure that the consolidation group is set up correctly to meet your business needs. See Group Consolidation Setup for more details.

To perform consolidation, the user must have Consolidation Manager checked in their account-level permissions‍.

See:

📗Group Consolidation Setup 

▶️ How to run the consolidation process in AccountsIQ (12.2) - AIQ Academy

▶️ Consolidated Reporting (12.3) - AIQ Academy 

Update Consolidation Exchange Rates

If an entity base currency is different to the Consolidation Group Currency, the consolidation routine translates actual and budget amounts into the Consolidation Group Currency. The translation rates come from the Consolidation Exchange Rate table. 

1. In the Consolidation Manager select the group you want to update.
2. Go to the Consolidation Exchange Rate tab and select the relevant currency from the Currency dropdown.
3. Use the Year and Period column filters to find the relevant period.
4. Click Edit and make updates to the relevant fields: 
   • P&L Avg. Period Rate: This rate is used to translate foreign currency Profit and Loss GL subsidiary Accounts into the reporting currency of the group. 
   • Bal. Sheet Period End Rate: This rate is used to translate foreign currency Balance Sheet GL Accounts and Foreign Exchange Revaluation Journals within each subsidiary. Note, that the equity section in the balance sheet of any foreign currency subsidiaries will not be retranslated every month. The initial rate used when the equity is posted will be used to translate the equity section and cannot be changed.
   • Budget Rates, Revised Budget Rates: This rate is used for budgets. 
     • Ignore both columns if you do not use consolidated budgets. These will default to the P&L Avg. Period Rate for the same period.
     • Budgets are consolidated automatically by consolidation routine. This allows you to prepare more accurate consolidated group and revised budgets at a pre-defined exchange rate, including forecasted future rates. You can also prepare monthly consolidated budgets at the same rate to ensure consistency. These rates will only be used when consolidating budgets. They are not used when consolidating Actuals.  
5. Click Update. The updated rates will have a white background. Updating an average rate will automatically update other rates in the column, so edit as necessary. 
6. Click Save.
7. Run a Revaluation Journal in each subsidiary. See FX Revaluation Journals.
8. Proceed with the consolidation process as outlined in the next section.

Exchange rate calculation when a subsidiary has a different base currency to the top consolidation entity

Example for JPY

The exchange rates set in the top consolidation entity determine the rates for subsidiaries.

Top Consolidation Entity Base Currency: USD

• EUR to USD = 0.987650.
• JPY to USD = 141.000

Sub-Consolidation Entity Base Currency: EUR

• USD to EUR = 1.012504 USD. This is calculated based off the USD to EUR rate from top consolidation entity.
• JPY to EUR = 142.763 EUR. This is calculated using the formula JPY to USD * USD to EUR (141 * 1.012504).

Consolidate the Group

1. In the group layer Entities tab, open the Consolidation Manager.
2. Go to the Entity Groups list and select the correct group.
3. Click Consolidate. This will consolidate the actual and budget amounts for all entities in the Consolidation Group. 

Verification Results

If no errors are found, the consolidation process will proceed automatically. The Verify Consolidation Data window will open, showing the progress of the financial and statistical data consolidation in the following order:

• Verifying CTL Account consistency (Control Account)
• Verifying GL Account consistency 
• Verifying GL Categories consistency 
• Verifying GL Sub Categories consistency 
• Verifying Currencies consistency 
• Verifying Period consistency 
• Verifying Dimension Tags consistency 
• Verifying Reporting Information consistency 

If errors are found, fix them. Click View Details for more information on any errors.

Details of the error will then appear on screen:

If needed, you can click Print All Errors. 

Click Consolidate again. Wait for the consolidation process to complete. On completion, a confirmation message will appear. 

Ensure consolidation has been run for the relevant period before running reports.

Consolidated reporting is available in the following places:

• Report Manager‍ 
• OData Connector‍ 
• GL Explorer‍ 
• Dashboards

Report Manager

The Consolidation Entity contains fewer reports than its subsidiaries. See Reports Glossary for more details.

The most commonly used are:

• Consolidated Balance Sheet - Split By Subsidiary: This allows for comparison of the balance in each entity, and lets you drill down to transaction level. All reports that are split by subsidiary let you view data using either the consolidation entity GL categorisation or that of a subsidiary.
• Consolidated Profit and Loss - Split By Subsidiary: Similar to above but with a P&L breakdown.
• Consolidated Trial Balance - Split By Subsidiary: Lists all GL Codes split by subsidiary.
• Aged Debtors/Creditors: All outstanding payments. This can be viewed in the currency of the group or subsidiary.
• Consolidated Cashflow: This summarises the amount of cash and cash equivalents entering and leaving a group.
• Consolidated Bank Reconciliation Report: An overview of the group's bank reconciliation status. You can drill down into the unreconciled items.
• Management Accounts Pack: This includes Profit and Loss Forecast, Balance Sheet, Profit and Loss versus Budget, and Profit and Loss versus last year.
• Intercompany Balance: Shows intercompany balance for all subsidiaries that have processed intercompany transactions during a selected financial period.