Exploring consolidation and its approaches
Consolidation and elimination are two different processes but they are connected. Consolidation is gathering transactions from several company accounts into a single entity to print consolidated financial reports. Elimination is excluding inter-company transactions between subsidiaries and it is performed prior to the consolidation process; the elimination process could be executed separately or within the consolidation process.
Microsoft Dynamics 365 for Finance and Operations has four consolidation approaches; the company's CFO and controller should decide which approach will be followed and of course this will be driven by business needs.
The following diagram illustrates the different consolidation approaches in Microsoft Dynamics 365 for Finance and Operations:
As shown in the preceding diagram, the consolidation approaches are:
- Online consolidation: It represents the process of consolidation that will be executed within Microsoft Dynamics 365...
