If you’re producing consolidating financials for multiple companies, there are a couple of ways to handle the consolidating entries in Microsoft Dynamics GP and Frx.  Which way to go depends on how you want to track the intercompany activity through your companies.

1. Designate a set of accounts for intercompany entries.  If you will have intercompany entries in multiple departments, profit centers, and so on, then this method can make it easy to track these entries.  Use a range of accounts such as 10990 to 10999 for intercompany receivables; 20990 to 20999 for intercompany payables, and so on.  You will be able to produce reports that track intercompany activity at any level of your company.
2. Designate a segment of the GL code for intercompany entries.  If you want to segregate all intercompany activity from normal activity, then use one of the GL segments other than the natural account.  For example, if your GL structure is Account – Department – Location, use 999 in the Department of Location segment.  You will be able to produce consolidated and company-level financials that separate out the eliminations, but will not see these entries included at the individual department or location levels.
3. Designate an eliminations company

At InterDyn-Artis, we have used both methods to help our clients create the financial statements that they need.  FRx uses GL links and reporting trees to produce consolidating financial statements.  MS Dynamics GP Analysis Cubes allow you to analyze the financial balances – use the first method if you want to see the intercompany activity along with the rest of the financial activity; use the second method to segregate it.  Management Reporter, which will be available starting with the release of MS Dynamics GP 2010, will also accommodate either method for creating financial statements.

 by Lisa Suggs, Senior Consultant at InterDyn – Artis, a Microsoft Gold Certified Partner located in Charlotte, NC

Related Posts

1. Challenges for Multi Company Processing
2. Microsoft Dynamics GP Interfund Management – It’s Not Just For Non-Profits
3. New IFRS Compliant Reporting Features in Microsoft Dynamics GP Version 11 Will Make Your Job Easier