Consolidated Ledger > Consolidation Processes > Create Consolidation Company

When the Consolidated Ledger module is activated, several companies’ account balances can be easily combined into one consolidated company to facilitate the generation of consolidated financial statements and other reports.

Here are the factors that make a consolidation company distinct from a regular company:

•A consolidation company is able to consolidate or receive postings of account balances coming from its designated subsidiaries.

•Users can access only the General Ledger and Consolidated Ledger modules in a consolidation company.

•There can be any number of subsidiary companies in a consolidation company.

•A particular company can be a subsidiary of two or more consolidation companies.

•The consolidation company is set up for the sole purpose of consolidation, and the “parent company” is actually set up as one of its subsidiaries. This way, the “parent company’s” own transactions and balances can be kept separate from the consolidated companies’ transactions and balances.

Creating a consolidation company is almost the same as creating a regular company except that you must mark the Consolidation Company checkbox. Marking this checkbox designates the company as a consolidation company. It is a one-time setup; you can no longer change it once records are created for that consolidation company.

Refer to the Set Up Company Settings topic that discusses the procedures of creating a company including a consolidation company.

Create Consolidation Company

Create Consolidation Company

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