Consolidation Scenarios
This guide provides practical examples and guidance for using Advanced Spreadsheets and Reporting to create consolidated financial reports across multiple Business Central companies.
Consolidation Overview
What is Consolidation?
Consolidation combines financial data from multiple legal entities into a single set of financial statements, as if they were one company.
The App's Role in Consolidation
Advanced Spreadsheets and Reporting helps with:
- Combining data from multiple companies
- Currency conversion
- Creating consolidated views
Note: Advanced Spreadsheets and Reporting provides reporting consolidation. For full accounting consolidation with eliminations and adjustments, use Business Central's built-in consolidation features alongside it.
Common Consolidation Patterns
Pattern 1: Side-by-Side Comparison
Show each company in separate columns:
Company A Company B Company C Total
Revenue 1,000 800 600 2,400
Expenses 700 500 400 1,600
Profit 300 300 200 800
Setup:
- Column Definition: One column per company + Total
- Row Definition: Standard G/L account rows
- Totals: Formula columns
Pattern 2: Stacked Detail
Show each company as separate rows:
Revenue
Company A Revenue 1,000
Company B Revenue 800
Company C Revenue 600
Total Revenue 2,400
Expenses
Company A Expenses 700
...
Setup:
- Column Definition: Standard (Net Change, etc.)
- Row Definition: Rows for each company with Company field set
- Totals: Formula rows
Pattern 3: Single Consolidated View
Show only consolidated totals:
Consolidated Income Statement
------------------------------
Revenue 2,400
Expenses 1,600
Net Income 800
Setup:
- Multiple reports or hidden detail rows
- Formula rows to sum across companies
- Show only total rows
Step-by-Step: Income Statement Consolidation
Step 1: Design the Report Structure
Decide on your approach:
- Side-by-side columns (Pattern 1)
- Or stacked rows (Pattern 2)
For this example, we'll use side-by-side columns.
Step 2: Create Column Definition
Name: CONSOLIDATED
| Col | Header | Type | Company |
|---|---|---|---|
| A | Main | Net Change | (blank) |
| B | USA | Net Change | CRONUS USA |
| C | Europe | Net Change | CRONUS EU |
| D | Consol | Formula | (blank) |
For Column D, Formula = A+B+C
Step 3: Create Row Definition
| Row | Description | Type | Totaling |
|---|---|---|---|
| 10 | REVENUE | ||
| 20 | Sales | Posting Accounts | 40000..40999 |
| 30 | Services | Posting Accounts | 41000..41999 |
| 40 | Total Revenue | Formula | 20+30 |
| 50 | |||
| 60 | EXPENSES | ||
| 70 | Cost of Sales | Posting Accounts | 50000..50999 |
| 80 | Operating Expenses | Posting Accounts | 60000..69999 |
| 90 | Total Expenses | Formula | 70+80 |
| 100 | |||
| 110 | NET INCOME | Formula | 40-90 |
Step 4: Create Financial Report
- Create a new Financial Report
- Link to your row definition
- Link to your column definition
- Name it appropriately (e.g., "Consolidated Income Statement")
Step 5: Test and Validate
- Run the report
- Compare column totals to individual company reports
- Verify currency conversion if applicable
- Check that formulas calculate correctly
Step-by-Step: Balance Sheet Consolidation
Design Considerations
Balance sheet consolidation must consider:
- Inter-company balances
- Elimination entries
- Equity accounting
Basic Consolidated Balance Sheet
Row Definition:
ASSETS
Current Assets
Main Company Posting Accounts, Co: (blank)
US Company Posting Accounts, Co: CRONUS USA
EU Company Posting Accounts, Co: CRONUS EU
Total Current Formula: sum of above
Fixed Assets
(similar structure)
TOTAL ASSETS Formula
LIABILITIES & EQUITY
(similar structure)
Handling Eliminations
For inter-company eliminations:
Row 200: IC Receivable - Main Posting, Co: (blank)
Row 210: IC Payable - US Posting, Co: CRONUS USA
Row 220: IC Elimination Formula: 200+210 (should = 0)
Adding KPIs to Consolidated Reports
Example: Consolidated KPI Dashboard
FINANCIAL SUMMARY
Consolidated Revenue (Formula)
Consolidated Profit (Formula)
OPERATIONAL METRICS
Open Orders - Main Indicator, Co: (blank)
Open Orders - US Indicator, Co: CRONUS USA
Open Orders - EU Indicator, Co: CRONUS EU
Total Open Orders Formula
Customer Count - Main Indicator, Co: (blank)
Customer Count - US Indicator, Co: CRONUS USA
Customer Count - EU Indicator, Co: CRONUS EU
Total Customers Formula
Indicator rows are not currency-converted. Counts and quantities consolidate cleanly; an indicator that returns amounts from a company with a different LCY stays in that company's currency, so avoid totaling such rows across companies.
Currency Considerations
Understanding Currency Conversion
When consolidating companies with different LCY:
- Standard G/L-based cells are converted automatically using exchange rates
- Uses the rate effective on the WorkDate, read from the reporting company's Currency Exchange Rate table
- Converts to the reporting company's LCY
- Indicator rows are not converted
Translation Methods
The app uses a simple current rate method. For other methods:
- Historical rates: Custom indicators
- Different rates for different account types: Multiple rows
Checking Currency Settings
Verify in each company:
- Go to General Ledger Setup
- Check LCY Code field
- Ensure it's set correctly
Maintaining Exchange Rates
- Go to Currency Exchange Rates
- Add rates for each foreign LCY
- Update rates regularly
Best Practices for Consolidation
Report Design
- Clear Labels: Identify which company each row/column represents
- Consistent Structure: Use same accounts across companies
- Document Assumptions: Note currency rates, elimination methods
Data Quality
- Reconcile First: Ensure individual company data is accurate
- Check Currency Rates: Verify rates before running reports
- Review Eliminations: Ensure IC eliminations net to zero
Maintenance
- Regular Updates: Keep exchange rates current
- Version Control: Track changes to report definitions
- Periodic Validation: Compare to accounting system consolidation
Limitations and Workarounds
Limitation: Complex Eliminations
The app doesn't automatically generate elimination entries.
Workaround:
- Create manual elimination rows
- Use formulas to calculate eliminations
- Combine with BC's consolidation for complex scenarios
Limitation: Historical Exchange Rates
The app uses the work-date rate only.
Workaround:
- Create custom indicators for historical rate conversion
- Use separate reports for different rate needs
- Document the rate used
Limitation: Ownership Percentages
The app doesn't handle partial ownership.
Workaround:
- Create formula rows that apply percentage
- Example: Row = Company B * 0.60 (for 60% ownership)
Troubleshooting Consolidation
Totals Don't Balance
Causes:
- Rounding differences
- Missing companies
- Incomplete data
Solutions:
- Add rounding adjustment row
- Verify all companies are included
- Check data completeness
Currency Amounts Wrong
Causes:
- Incorrect exchange rates
- Wrong LCY code
- Rate date issues
Solutions:
- Verify exchange rates
- Check G/L Setup in all companies
- Review rate effective dates
Performance Issues
Causes:
- Too many companies
- Large datasets
- Complex formulas
Solutions:
- Split into multiple reports
- Add filters
- Schedule overnight generation