It is a common requirement between our clients to create consolidated reports of their companies. To manage this requirement, they have two options: create a consolidation entity in AX or create consolidation report in Management Reporter.
This article presents the configuration and process of the consolidation entity in AX, eliminating the transactions from Due to/from accounts.
1. Create consolidation and elimination entity and check the boxes for “Use for financial consolidation process” and “Use for financial elimination process
2. Add the new entity into the organization hierarchy.
3. Generate number sequences using the Generate wizard in the new entity.
4. Create a number sequence for elimination journals.
5. Modify the General ledger parameters to use transfer mode Synchronous.
6. Configure the General Ledger setup, adding the Chart of accounts, account structure, fiscal calendar and accounting currency.
7. Create an elimination journal name and use the number sequence created previously.
8. Configure the accounts for automatic transactions.
9. Create elimination rules, adding the accounts that should be consolidated.
This is an example of how the consolidation process will work with intercompany transactions, consolidating the Due to/from ledger accounts for the entities.
1. Create intercompany transaction
2. Run the consolidation in the option General Ledger > Periodic > Consolidate > Consolidate [Online]
In the legal entities tab, select the legal entities that should be consolidated. Click on OK.
3. Go to General ledger > Journals > Elimination, create a new journal and open lines. Click on Proposals > Elimination proposal.
This proposal will create a journal with the amounts from the intercompany accounts to consolidate them.
4. The final step is to validate the Trial balance in the consolidation entity. Due to/from accounts will be zero and the other accounts will have the total sum from the entities selected.
About the Author
Liliana Orjuela is a Systems Engineer with a Master’s degree in Management Engineering. She has been working with Microsoft Dynamics AX since 2010 and currently is a Microsoft Dynamics AX/365 for Enterprise Senior Consultant at Pangea Group. Liliana’s experience includes customers in industries as technology, construction and telecommunications.