1. FI10 Consolidations: challenges and solutions
Amanda Mayer, Ellsworth Corporation

2. Your presenters Amanda Mayer Global Finance Controller - Corporate
headshot
Amanda Mayer
Global Finance Controller - Corporate
CPA, CGMA

3. Session objectives
Enable you to identify how you can use NAV consolidations at your organization. Gather tips and lessons on the different options for foreign currency translation. Identify the financial reporting needs of your organization and how NAV consolidations can help.

4. Agenda Consolidation Setup Additional Reporting Currency (ARC)
Chart of Accounts
General Ledger
Currencies
Additional Reporting Currency (ARC)
Reporting versus Consolidation
Translation during Consolidation
Foreign Currency
Same Currency

5. Consolidations: challenges and solutions

6. Purpose and function of consolidation
With many companies as part of a larger group, consolidations allow various companies’ financial statements to be reported in a single location. A consolidation company is required. Within the company, the total amounts for all accounts in the group are added together. Setup is required in both the consolidation company and the business units.

7. Setup overview Business Units and Consolidation Company
Chart of Accounts
Global Dimensions must be the same in subsidiary companies and consolidation company.
Home currency will always be blank. Additional currencies need to be setup in:
Currency Table
Exchange Rate Table
General Ledger Setup
Reporting (ARC)

8. Chart of accounts – subsidiary company
Identify the account for debit and credit postings in the Consolidation Company.
Foreign Currency subsidiaries – Identify the Consol. Translation Method (must match in both companies).
Fisnar Asia Ltd

9. currencies
Currency card – will be used in either the subsidiary and/or the consolidation company, depending on the consolidation process being used.
Fisnar Asia Ltd

10. currencies
Exchange Rates – do not need from beginning of time, but a decision needs to be made about how far back you update the exchange rates. For every $100USD, you get HKD (.12902HKD for every $1).
Nning of
Fisnar Asia Ltd

11. Additional reporting currency

12. Additional reporting currency (Arc)
Allows foreign currency subsidiaries to report in parent (or other) currency.
Can use to consolidate into a consolidation company.
Currencies are setup in Subsidiary companies.
Things to consider – reporting requirements of consolidation:
GAAP, Dimensions, etc.

13. General ledger setup
Fisnar Asia Ltd

14. General ledger entries
Additional reporting currency amount is updated using the rates ($4, / HKD =
Nning of
Fisnar Asia Ltd

15. Adjust balance sheet
Will not work if dimensions are setup as Code Mandatory
Choose Adjust Additional- Currency Amount on Balance Sheet accounts
Uses Relational Adjmt Exch Rate Amt
Fisnar Asia Ltd

16. Adjust balance sheet
Fisnar Asia Ltd

17. Adjust balance sheet
Fisnar Asia Ltd

18. Consolidation company
Enter the following information:
General Tab
Code = Short name for company (initials)
Name = Full name for company
Company Name
Click up arrow for options of companies on database
Select the company you want
Click ‘ok’ to confirm
Currency Code = leave blank
Currency Exchange Rate = Business Unit
Consolidate = checked
Consolidation = 100%
Starting Date = leave blank
Ending Date = leave blank
Date Source
Add. Rep. Curr. (ACY)
File Format = Version 4.00 or Later (.xml)
G/L Accounts Tab
Translation account
Fisnar Asia Ltd

19. IMPORT Choose dates, dimensions, and business unit to test / import.
Fisnar Asia Ltd

20. IMPORT
No Parent Currency Code needed for ARC method.
Fisnar Asia Ltd

21. Translation during consolidation

22. Translation during consolidation
Allows foreign currency subsidiaries to be translated at the time of consolidation.
Can be used in conjunction with Additional Reporting Currency.
Currencies are managed in the Consolidation Company
Things to consider – reporting requirements of consolidation:
GAAP, Dimensions, etc.

23. Consolidation company
Enter the following information:
General Tab
Code = Short name for company (initials)
Name = Full name for company
Company Name
Click up arrow for options of companies on database
Select the company you want
Click ‘ok’ to confirm
Currency Code = enter currency of business unit
Currency Exchange Rate = Local
Consolidate = checked
Consolidation = 100%
Starting Date = leave blank
Ending Date = leave blank
Date Source
Local Curr. (LCY)
File Format = Version 4.00 or Later (.xml)
G/L Accounts Tab
Translation account
Fisnar Asia Ltd

24. import Update Average and Closing rates for the current period.
Fisnar Asia Ltd

25. import
Parent currency code must be filled in.
Fisnar Asia Ltd

26. General ledger entries
Fisnar Asia Ltd

27. questions

28. what are your constraints?
How many companies?
How many currencies?
Dimension reporting requirements?
Accounting and Audit requirements?
Fisnar Asia Ltd

29. Thank you
Contact information
Amanda Mayer, Ellsworth Corporation –

30. Final reminders
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