Consolidation Accounts

Consolidation Accounts would be used where there are multiple trading divisions or locations and you wish to add each of the Total Sales accounts into one Consolidated Account.

At present three Division / Location branches can be set up using the ID prefix of 10- 20- and 30- and a consolidation section of 80-.

Consolidating accounts are set up in numeric order,all of the 10-'s, then the 20-'s, 30-'s adding into the 80-'s.

When setting up a new GL ID, they have to add into the Consolidating account.

When running the Profit and Loss report all of these areas will be displayed. 

The chart in the Demonstration Company is set up using a consolidating account.

It is possible to have multiple locations or divisions ,  and to consolidate them into a summary section;

including consolidating the opening and closing inventory for each division into a consolidated opening and closing stock in the summary section.

e.g.

10           Opening

                Closing

20           Opening

                Closing

30           Opening

                Closing

All Consolidating into     

80           Opening

80           Closing

However it is not possible to have the opening and closing inventory accounts consolidate into multiple levels of consolidation

e.g.

Location 1

   Division A

   Division B

   Division C

Location 2

   Division A

   Division B

   Division C

Location 3                                                                           

   Division A

   Division B

   Division C

Cannot consolidate into

Location 1 Summary

Location 2 Summary

Location 3 Summary

As well as

All Locations

   Division A

   Division B

   Division C

NOR can it be consolidated into

 Location 1 Summary

Location 2 Summary

Location 3 Summary

As well as

All Locations

The limitation is due to the multiple passes that the reporting functions must make over the data before generating the financial report figures..

The Cost of Goods Sold (COGS)  section - including the Opening and Closing   accounts -

• should carry into any 2^nd or 3^rd tier consolidation sections as a whole
• any detailed reporting of the COGS, opening and closing inventory, required for the consolidation reporting, will need to be done outside of the software

Infusion Internal Reference Only:

There are sample datafiles and a FINPL report (modified) to help illustrate the issues that will arise.

This is available in

          Y:\New Zealand\Infusion Documentation\TestingWithConsolidations