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Ledger Consolidation Part 1

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Transcript

In this video we are going to discuss about consolidation consolidation. In the last video we had discuss discuss about the reporting currency right reporting currency means a partially or functional currency what other currency we use? So that all comes under the reporting currency Okay. Now what is the consolidation? consolidation means the company maintains more than one primary Ledger's. The company maintains more than one primary ledgers at the time we required the consolidation So, when the company maintains more than one Ledger's suppose, already we defend our company primary ledger so that the currency of the ledger is INR because our companies in India Functional currency of our companies I enter already predefined, but we have a start one branch in us we have a start when branch in us versus another country right.

Suppose if you want to store US company transaction, very creative and more primary ledger right, merely query one more primary ledger, why because yes is another country the currencies are different. If you want to store the years currency transaction, we require the currency right dollar currency one and also the current is currency countries are different. If you want to pay the taxes in US country compensated we need one more legal entity. Right. So, if you have multiple country operations at the time, we maintain the business tape of the ledger but always the ledgers are consolidated with the parent always whatever the child Ledger's you can have always at the time of year ending all the child Ledger's are consolidated with that parent with the dark parent okay. So how we can do the consolidation means we are going to do the mapping of the segments before the consolidation firstly how to go for that translation of the currency before go for consolidation firstly how to go for translation of the currency after translation is completed.

Then we have to mapping the segments with help of the mapping rules the consolidation process is completed. Okay, so this is also another important interview Question when the consolidation is mandatory if the company maintains more than one Ledger's and then we need to use this consolidation in the consolidation, we have a translation. Okay, so now let's start the cancellation process already our company primary ledger is created. And also we define the different type of the journal entries with help of our primary ledger. Our primary ledger currency is Ayana. Okay, next, now, I want to create a one more row ledger of our company.

Now my company started in one branch in us. Now I want to create a one more primary ledger for the US transactions. Okay, so here There isn't one condition is there. So if you want to create a secondary ledger account company, the ledger is different for the parent ledger. Actually what is the ledger? A ledger is a collection of traces, Chart of Accounts, currency and calendar, right?

Any ledger you take it's a parent ledger or dessert a ledger, any ledger you take compulsory comprising of the three services. The first one is the chart of accounts. Second one is the currency and third one is the calendar. On the primary ledger we define our primary ledger. Santa Fe consists comprising of the four segments and our functional currency we declared as a INR currency and we created a calendar right that is the fiscal calendar starts from close to January and ending is 31st of December already completed. Okay, now I want to create a secondary ledger of our company here there is one condition is there.

So, how to create a secondary ledger with help of the three system but whenever we define a current Chart of Accounts and currency there is one rule you must have should follow that rule on what is the role whatever primary Ledger's you can have the secondary legends you can have the second ledger chart of account is not equal to the primary ledger. This is the most important point one company maintains more than primary more than secondary Ledger's, okay. So, if the if you want to create a secondary ledger if your company has still created Chart of Accounts, how to define the chart of account with the help of the segments right. So, whenever we want to define the segments into the secondary Chart of Accounts, the segments are not same With the primary ledger Chart of Accounts, number of segments, number of segments. In our case, the primary measure, chart of account can contain the four segments.

But now, I'm going to create a secondary ledger chart of account here. This we cannot define the four segments, maybe we can define three. And maybe we can define to two as a mandatory company account. Maybe we'll define three but not four. means the number of segments are not same into that to check. This is a important point.

Okay, the number of segments are not equal into that to check if it comes compulsory, the already parent we created we cannot make any more changes on the parent. But now we are about to create it. Changed right? So, at the time of printing the chair then we have to follow this rule why because already we know parent content the four but check now I'm going to create a child we have to follow this rule. We cannot define the four neighbors maybe we can define two or maybe we can define three or five or six or seven, but not for there is a first second tool is currency. Already our primary parent or primary ledger currencies, if not already be defined we cannot make any more changes on that ledger.

Okay. Now we are able to create a secondary ledger currency. Now our companies in India now what is the currency of us? dollar hundred. The currency is also different from one ledger to another ledger parent ledger to but not both are the same. Okay, so these are the two points are most important to creating of the secondary tournaments you can create any type of calendar there is no constraint from the calendar.

Maybe you can create same physical candle also not a problem, but chat Africans and currency. currency is always different. And chat ethic constructor is also different for the parent. compulsory for follow this rules, okay. Okay, now I'm going to define a secondary primary ledger of our company. Okay.

So first go to define a chart of accounts, the navigation sector, financials, Lexus key segments. Now go to query our structure. application, go to query mode, query the app Application Now select the title of the flexibility accounting key flex open and click on the code repo to create a new button. Let's do the name of your company set test a content structure is a grid sub accounting structure okay and go to the binder segments. The first one is a company so segment one and what is the value set go to create a value set for the secondary company sup company This type is a list of files security type is a non hierarchical security correct attack maximum size is 10 and it is a independent token okay save it and sign here sub company okay and the second one is department maybe in that should fit in there is a four segments right but not four you can define three are two are five but not four because the both of them child and parent structures are not same, but always these are the two different structures on okay number of segments Sub department.

List type is a list of values. Security type is a no security, character type, maximum size is 10 and independent assign the department and last one is a count segment the three factor segment Mr President is tough values non hierarchical security director maximum sizes 10 independent okay go to our side now. Okay. Come okay now I declared the three segments here, but not four okay. Maybe we can define five others okay but not both are not equal. Okay.

Now go to save which transaction complete for records supplied and saved. After that go to assign the flexibility qualify state without the qualifiers, the structure is not successfully created. After defining the segments you must enter assign the qualifiers, flexibility quality So compulsory two qualifiers are mandatory right one is de balancing segment qualifier and second one is a national I put the cursor on the company segment click on the flexible qualifies button. Now we have to make it this is as a balancing segment after that go to savage closet and put the company cursor into account account is an actual account maybe it is enabled so you can close it okay. So department is a call center you may assign may not be also it's not a mandatory but this was Amanda savage and closet. So Allah dynamic inserts now freeze the flexible definition.

After freezing you cannot make more changes. If you want to make more changes, first unfreeze it and make changes Combine Okay. Now the structure is combined successfully. Now the chart of the conscious created with three segments after that go to enter the values on each and every segment. corridor application General Ledger accounting structure is the accounting structure and segment this customer is company find 01 is F test underscore TCS same qualifies to Allah budgeting Allah zero to a standard Got to say thanks next under the valuation department. So go to the Fed now the department is our department Go to search next.

Mandatory cash cash is nothing matter bank account expenses are non mandatory incomes are nothing more than revenues Are you gonna count is the ownership account so here we require one mandatory account in September 2 eligible ledger translation adjustment account Okay, so first we'll define our mandatory accounts okay this is our chat icon okay. And what is a currency currency is also different right? Go to define our function currency for secondary company setup. So currencies set up currencies to define Setup currency doesn't go to define your function currency of your secondary company that is a compulsory it's added then I or not why because I enter is our function currency of the primary company is a USD your currency dollars countries in effect states and symbol is dollar symbol precision is to decimal punch transaction complete when required upgraded soon Okay chat Africans currency both are different for two Ledger's compulsory these two as a different current calendar which you can use same calendar also because a calendar sources your periods are the same, right?

So you can use the same conundrums. Okay. So we tell them this sentence We're going to define a secondary primary ledger. The navigation is setup. So financial accounting Setup Manager accountants define a primary ledger of the secondary company. So here compulsory we need a legal entity right?

So why because the legal entities are mandatory for the US government if you want to pay the taxes into the US, compulsory we need a legal entity. Go to click on the Create accounting setup and go to click on that create legal entity. compulsory we need a legal entity now everybody's interested Nearby because our company novena us on right now we want to create a legal entity based on the US country and what is a legal entity name? You can give any name the name is purely us, us, us under scope. standard score anonymization underscore underscore identifier means your legal entity so the short name I'm here to ask him that ID number because previously we created a desert India right at the time retasking the pan number now it didn't work number enter the PIN number 10 Tax Identification Number go to select the address select any researches San Francisco okay so that it managers are not mandated to apply Yeah, now the legal entity created go to add another row, go to query your legal entity with the help of the name.

Okay, this is your legal entity regions. After that go to click on next button now asking them like Germany test underscore sub underscore ledger and what is it a comment, test underscore sub accounting structure and the calendar The calendar and the current segments okay now the sub ledger method is not mandatory now. So go to up next so carefully review your accounting structure before saving once you save or you will be unable to change move your primary ledger move backwards if you want to make changes move back to the previous step everything is okay quarter finished after solution now the structure is a dispenser configuration okay now the ledger is completed but there is no accounting options. status of the ledger is in progress on click on Update button to assign a contact option displays the error message some time compilation error message, closet and recompile the structure one more time.

Setup financials flexibles key segments and put the cursor noticed at company structure. That's the subject content structure and before going to make changes recompile it past present present. Click on the segments marriage and again freeze it Okay, okay, now that structure is combined okay. After that, go to our content setup window. Complete the accounting setup, setup, financial accounting Setup Manager account. Go to the ledger, Korea ledger that's the sub ledger.

Okay now the status of the sub ledger is in progress. Go to click on Update accounting options, click on Update button, select their retained earnings icon This is a first page here there is no retirement account, go to the next. The next page there is a return in second quarter select the core combination of returning second because the return on the second is mandated right Okay, click on the Create button. Okay now the combination is dispersion after that go to next. Next, finish it after finishing. Now if our primary ledger is successfully completed go to click on complete button.

Okay, we'll get a concur warning message. Yes Okay. Now this is a secondary ledger now the secondary ledger is completed. Okay, now we have two Ledger's one is a primary ledger second one is a secondary ledger okay if you want to do the transactions into the secondary ledger first we need to open the PDFs in the secondary ledger right. So if you want to open the periods first we need to assign the secondary ledger to the responsible delivery outlets and it means with help of the system admin responsibility. Again go to system admin responsibility file is which response will select the system administrator.

The navigation is profile system. application is general ledger and the response to this general ledger mission operations to us Find now here, reporting currency the right now gotta sign your second religion. After that again login to the GM I'm going to open the period setup open and close. Find Okay, now the January period open. Yes. Next open period February open.

Much. Open. Yes. Okay. Okay. Now I opened the three periods up to January to March.

Why because marches are less let us be right. Let's go to see the records with us. plus is successfully completed or not. So first complete all this. problems after completing let's go to find out whether the period is open or not. Completed okay let's go to see whether the threads are open set up open or close fine okay the TPS are open Okay.

So now next up is now we have two Ledger's primary ledger and secondary data after that next step is go to define a setup for the consolidation. We first define the setup further consolidation on what is the first step first step here go to define a conversion rate and also we'll create One transaction per second the ledger. Before that, we have to assign the translation adjustment account into a second relationship. Before that, assign that translation at this moment at contra secondary ledger, so maybe we'll we'll see the setup into the next video. Okay.

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