Merge your companies together with the Consolidation option
Description

The consolidation option merges financial data from multiple companies into a single set of financial accounts. You can then print management reports for the consolidated company. Let's take a look.

Cause
Resolution

This feature is available in Sage 50 Accounts Professional and Sage 50 Accounts Client Manager.

Are you using Remote Data Access? 

While your data is linked with Remote Data Access you can't use the consilidation option. As a workaround, you can remove all companies from Remote Data Access, consolidate your data, then upload your data again. 


What Consolidation does

When you run the Consolidation option, the following processes occur:

  • Any nominal codes that don't exist in the parent company are created
  • Sage Accounts looks at the monthly buckets for every nominal code in each of the companies to be consolidated.
    The bucket values are totalled for each nominal code and populated in the parent company. This includes Actuals, Budgets and Prior Year bucket values
  • A journal is posted in the parent company for the total on each nominal code

There are some limitations around what can be consolidated -

 NOTE: To consolidate, you must have an unused company available in which to consolidate. For example, if you want to consolidate 3 companies you need at least a 4 company licence.

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Prepare the companies to be consolidated

Consolidation is usually performed at month end or year end. You should ensure that all required transactions have been posted and that any month end routines have been run.

 NOTE: You should ensure that the nominal code ranges are the same, as the chart of accounts aren't copied to the new parent company.
For example, if you use the 4000 range for sales you should ensure this is the same in both companies. If they aren't the same your financial reports may be incorrect.


Prepare the parent company

The parent company is only used to consolidate the accounts of other companies. Before consolidating, you must:

1. Rebuild the data

  1. Click File then click Maintenance and confirm Yes to close any open windows.
  2. Click Rebuild.
  3. Select Keep my Nominal Account records and Keep my Chart Of Accounts check boxes.
  4. Click OK the click Yes.
  5. Click OK then Close.

2. Ensure the parent company has the same financial year and base currency

Make sure the finacial year start date and base currency is the same as the companies to be consolidated.


Consolidate the companies

  1. Open the parent company.
  2. Click Tools then click Period End and click Consolidation.
  3. Select the companies to be consolidated then click Consolidate and click Yes.

 NOTE: After consolidating you may have warnings in the data regarding the aged balances. This is normal and can be ignored as there are balances on the nominal codes but no invoice transactions.

Once the consolidation is complete, you can post any required adjustments then print the required management reports.


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