Financial Consolidation - Inter Company

The Financial Integration (FI) aspect of Compiere means Accounting Consequence, and stuff that makes Accountants rule. Well, IANA.

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Financial Consolidation - Inter Company

Postby orbov » Tue Aug 29, 2006 5:16 pm

I have been tyring to figure out how to create a holding company and 3 subsidiaries, ecah with their own accounts visible both individually under the respective org codes and rolled up under the holding company for accounts consolidation purposes. Questions:

1. Do I set up different organizations for each of the 4 entities under one client?
2. Is the holding company the client and the 3 subsidiaries the organizations?
3. How do i create 4 sets of accounts (elements) each with their own set of element values?
4. Do all the necessary entries get created for intercompany transactions if the accounts (elements) are separate?
5. How do I do a consolidation to merge the accounts of all the 4 companies?
6. How can I see the breakup of each element value broken into the 4 organizational entities?

I would be obliged if I can be guided as i am currently doing some testing to see if Compiere will be suitable for us.
orbov
 
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Postby red1 » Sun Sep 03, 2006 10:42 am

Firstly, lets talk about the basis of inter-company in Compiere, which may resolve document processing but not sure if it meant the accounts required here.

There is a way where u create a specific Organisation for that internal Company i.e. SubCo. Then u create a BusinessPartner called SubCo and check its linked to Organisation box in its record. The system will then create a CONTRA document when dealing with that SubCo. I.e. when buying from SubCo, u issue a PO to it, and it automatically issues an SO to u back. But i havent heard yet of anyone following thru to see if their respective invoices posted well. Thus u have to setup like stated here and follow thru.

To your questions, here are the short answers:
1) Yes
2) Yes
3) Depends on your accountant, if he wants to work on the individual accounts in his books. Otherwise its not necessary cos during reporting u shuld be able to drill into the same account but filtered by Org.
4) see above notes.
5) -above-
6) -above-
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