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Reversal of Entries in Consolidation Company

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Posted on by Revan Jaunt

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Hello Everyone,

Good Day Everyone.

Could you please help me understand about the consolidation process including elimination and the consolidation entries reversal?

Also, how many time can I run the process? Please clarify.

Best regards.

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Dynamics 365 Business Central

Microsoft Dynamics NAV

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Sohail Ahmed 4,741 on at

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Reversal of Entries in Consolidation Company

Hope this might be helpful:

The Business Central consolidation process combines financial data from multiple subsidiaries (business units) into a single consolidation company.

Consolidation Process:

Setup Business Units: Define each subsidiary as a "Business Unit" in the consolidation company, linking to their respective G/L Accounts and specifying their Consolidation % (ownership).

Run Consolidation: Use the "Consolidate" function (or "Consolidate Business Units"). You specify the source companies, date range, and G/L accounts to consolidate. Business Central then pulls the G/L balances from the subsidiaries (applying the Consolidation %) and posts them to the consolidation company.

Elimination:

Purpose: Elimination entries are crucial to remove intercompany transactions (e.g., sales, purchases, loans between subsidiaries) to prevent double-counting and accurately reflect the consolidated group's performance with external parties.

Method: In standard Business Central, elimination is primarily a manual process. You typically identify intercompany balances/transactions in the consolidation company (or by reviewing intercompany accounts in the subsidiaries) and then post manual adjusting entries in a General Journal within the consolidation company to reverse or offset these intercompany effects. Business Central does not have automated elimination rules.

Consolidation Entries Reversal:

Method: You can reverse a previously run consolidation batch. After running the "Consolidate" process, a G/L Register entry is created. Go to the "G/L Registers" list, find the entry for the consolidation, and use the "Reverse Transaction" action. This will reverse all the G/L entries posted by that specific consolidation run.

How Many Times Can You Run the Process?

You can run the consolidation process as many times as needed for a given period. Business Central's consolidation functionality is designed to be re-runnable.

When you run consolidation for a period where entries already exist, it typically adds to or overwrites the previous consolidation entries, ensuring the consolidated figures always reflect the latest balances from the source companies. It's not just for "new" transactions but pulls the current balances.

This re-runability is useful if subsidiary data changes, or if adjustments are made after an initial consolidation run. You just re-run the process for the same period to update the consolidated figures.

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Gerardo Rentería Ga... 20,638 Most Valuable Professional on at

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Reversal of Entries in Consolidation Company

Hi

If any of the replies have answered your initial question, please mark it as a confirmed answer. I see you've already registered this question as a new thread.

Consolidation Process Queries

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Revan Jaunt 283 on at

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Reversal of Entries in Consolidation Company

Hi Everyone,

Thank you everyone for taking time to share your knowledge.

I have tried all your recommendation and was able to setup business units and Chart of Accounts. However, I got a few queries.

1. In Business Unit, I could see an option called consolidation %. Will it consider only given percentage of balances from all G/L Accounts of a Business Unit?

2. Everytime when I run consolidation, will it only consider additional transactions that posted newly in the business units? If nothing is new, it will not create any new entries in Consolidation company? Is that right?

3. Also for reversing the entries should I use G/L register for Bulk reversal?

4. For elimination, should I eliminate both sales and purchase related intercompany transactions between both companies? Or can I eliminate anyone company?

5. Finally, can I define elimination rules in Business Central?

Please share your thoughts.

Thanks.
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Sohail Ahmed 4,741 on at

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Reversal of Entries in Consolidation Company

Hello Revan,

In Business Central, the consolidation process involves bringing financial data from one or more subsidiary companies into a consolidation company for combined reporting. Here’s how it works in brief:

Consolidation Entries: When you run the consolidation process (via Business Units → Import Consolidation from Database/File), BC creates G/L entries in the consolidation company based on the selected dimensions and filters.

Elimination Entries: These are manual journal entries that you create in the consolidation company to eliminate intercompany balances (e.g., intercompany payables/receivables or revenues/expenses).

Reversal of Entries: Consolidation entries can be reversed using the Reverse Consolidation function, which lets you undo the last import. This is helpful if there were errors in the mapping, dimensions, or data.

✅ You can run the consolidation process multiple times, but keep in mind:

Each run appends new entries unless you reverse the previous one.

Reversing is only possible before posting other manual entries in the consolidation company for the same period.

For detailed guidance:

📘 Official Microsoft Docs – Consolidation Overview

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Mansi Soni 4,979 on at

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Reversal of Entries in Consolidation Company

Hello,

In Business Central, the consolidation process combines financial data from multiple companies (subsidiaries) into a single consolidated company for group-level reporting. During this process, elimination entries are created to remove intercompany transactions (like intercompany sales, loans, or investments) to avoid double-counting. These entries can be posted manually or through consolidation journals.
If needed, you can reverse consolidation entries, which removes previously imported data and allows corrections before re-importing. You can run the consolidation process as many times as needed, especially if data changes or adjustments are required - it’s a repeatable and flexible process. However, always ensure that elimination entries and mappings are accurate to maintain correct financial consolidation.

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-consolidated-company-reporting#eliminate-repeated-transactions
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Jainam M. Kothari 9,226 on at

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Reversal of Entries in Consolidation Company

Hello,

The consolidation process allows you to combine financial data from multiple companies into a single consolidated company for reporting. This includes setting up business units, mapping accounts, and importing G/L balances. Elimination entries, which remove intercompany transactions to avoid duplication, must be created and posted manually. You can reverse or re-run the consolidation process as often as needed, especially if there are updates or corrections in the subsidiary data.

https://archerpoint.com/using-consolidations-in-microsoft-dynamics-365-business-central/
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Andrés Arias 1,193 on at

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Reversal of Entries in Consolidation Company

Hello,

You could check the following links:

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-consolidated-company-reporting

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-how-reverse-journal-posting

https://www.youtube.com/watch?v=I8LKSrcYfPM

I hope I can help.

Regards,

Andres
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YUN ZHU 85,503 Super User 2025 Season 1 on at

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Reversal of Entries in Consolidation Company

Hi, hope the following helps.

Consolidation in Microsoft Dynamics 365 Business Central

https://dynamics.tensoft.com/consolidation-microsoft-dynamics-365-business-central/

Solved: Multiple Consolidation & Reversal of consolidation Entries

Thanks.

ZHU
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Holly Huffman 6,339 on at

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Reversal of Entries in Consolidation Company

Good morning, afternoon, or evening—depending on where you are in the world!
Hope you're doing well.

Overview of the Consolidation Process
In Dynamics 365 (both Finance and Business Central), the consolidation process is used to combine financial data from multiple legal entities into a single consolidated company. This is typically done for reporting purposes when a parent company owns one or more subsidiaries.

Elimination Entries
Elimination entries are used to remove intercompany transactions—such as sales, purchases, or loans between subsidiaries—that would otherwise be double-counted in consolidated financial statements.
There are two main ways to handle eliminations:

Automatic Elimination Rules (in D365 Finance):

You can define elimination rules that specify which accounts and dimensions to eliminate.

These rules can be processed during the online consolidation or via a separate elimination journal proposal.

Manual Elimination Journals (in Business Central):

You can manually enter elimination entries in a journal batch.

Use the Eliminations report to preview and validate entries before posting.

Reversal of Consolidation Entries

In Business Central, if you need to reverse consolidation entries (e.g., due to errors or adjustments), you can:

Use the General Journal to post reversing entries manually.

Or, if the entries were posted via a batch, you can reverse the entire batch using the Reverse Entries function.

In Finance, reversal depends on how the entries were posted:

If posted via elimination journals, you can reverse them like any other journal entry.

If done through the online consolidation process, you may need to re-run the process with updated parameters or post correcting entries.

How Often Can You Run Consolidation?
You can run the consolidation process as many times as needed. It’s common to:

Run it monthly for management reporting.

Run it quarterly or annually for statutory reporting.

Each run can be configured to:

Include only new or changed data.

Overwrite previous entries.

Or append to existing data, depending on your setup.

Note: I collaborated with AI to help craft this response and ensure it’s as accurate and helpful as possible.
Hope this helps some!