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Consolidation Year End: Close by Business Unit Code

BenSydneyBenSydney Member Posts: 56
Hi,

I have created a consolidation company and have completed the import of the subsidiary companies. Now when I close the Financial Year (run 'Close Income Statement') I select Close By 'Business Unit Code'. This closes the Income Statement accounts by the 'Business Unit Codes' (what I want), but the Retained Earnings account only gets a single consolidated entry (the net effect of all the Income Statement accounts.

Is this by design or a bug?

Regards,
Ben

Additional Information:
NAV Version: 6
Database Version: MS SQL
Country Version: Australia

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    ssinglassingla Member Posts: 2,973
    This is by design though I don't why.
    CA Sandeep Singla
    http://ssdynamics.co.in
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    BenSydneyBenSydney Member Posts: 56
    Thanks. I thought so.

    Just a bit frustrated, why give functionality but it only works to a point?
    The system allows for the closing of years by Business Unit Code but this is only for income statement accounts not the retained earnings account. If the purpose of NAV's consolidations functionality is to only cater for reporting at the consolidation level, why then give you the option to filter columns in Account Schedules on 'Business Unit Code'? So in essence you can't really then use this functionality if you want to create a report with consolidated column and then also columns for all the individual business units.

    In my opinion consolidations is too basic and the 'standard' functionality could be improved (for example proper closing of year, allowing for Accounting Period mapping, etc) to bring it in line with other similar products in the market that have these sort of functionality.

    The answer is not always to 'customise' or to 'develop'.

    Just my opinion (for what its worth)
    Cheers,
    Ben
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    BenSydneyBenSydney Member Posts: 56
    Hi Alex,

    Thanks, I will do that.

    Cheers,
    Ben
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    veeraviveeravi Member Posts: 66
    I am also facing the same problem with one client.Is there any solution available for this?
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    mohana_cse06mohana_cse06 Member Posts: 5,504
    ssingla wrote:
    This is by design though I don't why.
    Alex Chow wrote:
    Submit your request for product enhancement here:

    https://connect.microsoft.com/dynamicssuggestions/
    :thumbsup:
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    jglathejglathe Member Posts: 639
    Hello,

    we have implemented this in the way one would expect:

    - Closing by Busines Unit and all Dimensions - always, no exceptions.
    - Retained earnings posting is split by all combinations of that.
    - You can always see what will be closed, even if reporting currency is used.
    - Also available with transaction currency, the closing will be by transaction currency as well.
    - Account Schedule has a totaling field for business units.

    This is part of our BuildingBlocks AddOn, soon to be released.

    with best regards

    Jens
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    veeraviveeravi Member Posts: 66
    Hi
    Thanks. Need to wait...!
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    gngngngn Member Posts: 3
    Hi Everyone

    Can someone help with something. Our fiscal year is coming up and wanted to know the procedure in closing fiscal year for consolidated company. we have 2 sub companies and 1 consolidate company. do i close each sub company first then go to consolidate and import the transactions and then close the consolidate company? or if i just go to consolidate company it does all of it ? thanks
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    jglathejglathe Member Posts: 639
    Hi,

    the consolidate function does not transfer postings on closing dates (at least not the standard function). So you need to do the closing in every company to the retained earnings account. I'd recommend to close by business unit, though it will (should) only have an effect in the consolidated company. As discussed in this thread before, the standard "close income statement" report posts only one accumulated line to the retained earnings account, not by business unit (and dimensions).

    with nest regards

    Jens
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    gngngngn Member Posts: 3
    HI Jens

    thank you soo much for the explanation. I have one more novice question. i learned how to do intercompany postings and importing everything to the consolidate company and everything matches and works perfectly. I have a question.

    i realize when i do intercompany postings it credits payable in one company and debits AR on the other company. this i undrstand because one company owes the other the amount. but does it stay there all the time? when do we offset this? when we close the year?

    Also i read something in the manual about eliminating in trasnfers what is that for?

    sorry to bug you and i know its novice questions but wanted to see if you can help
    thanks
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    jglathejglathe Member Posts: 639
    Hi gngn,

    !*%§$... it took me too long to write the answer, the whole text is gone. ](*,)

    To answer your question: Eliminations are part of the closing process for a consolidated company. You eliminate all IC relationships to get the net Balance and PnL of it. As far as NAV is concerned, IC eliminations are not well supported. IC amounts are not transfered by the consolidate function. To do the eliminations you have to retrieve the IC accounts and amounts from the source companies and post a G/L batch. If you have only a few subsidiaries and few IC relations, that's the most effective way to do it.

    with best reagrds

    Jens
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    gngngngn Member Posts: 3
    sorry to keep on annoying you. soo

    my fiscal year is end of this week. so first i close the fiscal year for
    each company. then i import the transactions from the 23 companies into the
    consoludated and then close the consolidated company. then when does
    eliminating process take place? can you give me some easy steps or details
    pleasseeeeee
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