Dynamics Community Forum Thread Details

Hi experts,

I'm working on a scenario for the Consolidate online (aka Hard consolidation) functionality. This company operates across multiple legal entities (A to F) setup in D365 Finance. The company presents statutory requirements to produce two separate consolidations and related statements:

A full-group consolidation covering all legal entities (A to F)
A "partial" consolidation covering only a subset of those entities (C and D)

A few additional details regarding the scenario:

All entities share a common chart of accounts.
All entities share the same reporting currency (accounting currency may vary).
Several of the entities have intercompany relationships (highlighted in the pictures below).
Ownership is at 100%.

Given this premise, I am evaluating two possible approaches in D365 Finance (SCHEMA AS ATTACHMENTS):

Option 1 - Two-level consolidation

Under this option, we would create 4 additional entities (Elimination CD, Consolidation CD, Elimination ALL, Consolidation ALL). We would then create a two-level consolidation template where the results of the first consolidation are transferred to the second one.

Consolidation CD --> C + D with elimination of trades between C and D only
Consolidation ALL --> A + B + CD + E + F with elimination of trades between A and B, CD and E (?), F and E.

Option 2 - Separate consolidation

Under this option, we would still create 4 additional entities (Elimination CD, Consolidation CD, Elimination ALL, Consolidation ALL). We would then create two separate consolidation templates and elimination rules:

Consolidation CD --> C + D with elimination of trades between C and D only
Consolidation ALL --> A + B + C + D + E + F with elimination of trades between A and B, C and D, D and E, F and E.

Questions:

Do you see anything particularly incorrect with either of the approaches particularly with regards to the elimination rules?
Would you consider any of the options preferable to the other? I believe Option 2 would be easier to implement due to the intercompany relation between D and E.