Consolidation setup

Consolidation setup is Phase 2 of the consolidation lifecycle. The four setup areas below prepare the consolidation environment before group consolidation runs. Each area follows the same pattern: Input template → Rules configuration → Reports.

Carry forward

The carry forward rule transfers closing balances from the prior reporting period to the opening balances of the current period without manual intervention. It applies to balance sheet accounts only — P&L accounts reset to zero at the start of each period.

Executing carry forward

1. Open the consolidation sheet. Click Sheet details on the Level 2 header.

2. Go to the Features tab and locate the Carry Forward rule. Confirm it is Enabled.

3. Click the Play icon. Select the target Time and Version members.

4. Click Run.

5. Review the Carry Forward report — confirm opening balances match prior-period closing balances before proceeding.

Note: When Opening Balance Carry Forward is enabled, users cannot input directly to Flow member F00. Warnings appear when F00 is selected — this is expected behavior.

Standard business rules for consolidation

After carry forward runs, verify:

• Carry Forward report — opening balances match prior-period closing balances for all balance sheet accounts.

• Net Variation report — balance sheet movements are mathematically correct (opening + additions + disposals = closing).

Account mapping

Account mapping rules transform and align financial data from entity-level chart of accounts structures to the target group reporting structure, ensuring all entities contribute data in a consistent format before consolidation runs.

Creating an account mapping rule

1. Open the consolidation sheet. Click Sheet details on the Level 2 header.

2. Navigate to the Actions tab. Under Auto Mapping Rule, click + Add Metrics.

3. Select Standard Rule. The Rule Details pane opens.

4. Enter a unique Name. Configure the Input — Dataset, Account, and Flow members.

5. Configure Output: Dataset (Same as Source or Single leaf member); Account or Flow (Same as Source — but not both simultaneously).

6. Select Applicable Metrics — typically Entity Input.

7. Optionally enable Reverse Sign in Output to multiply all output values by −1.

8. Click Save.

Note: Standard rules execute after Advanced rules. Reorder Standard rules by dragging and dropping — the system saves sequencing automatically.

Standard business rules for consolidation

After creating rules, verify:

• Account Mapping report — all source accounts are mapped correctly.

• Unmapped Account report — no source accounts without a mapping defined.

Currency conversion

Currency conversion rules convert entity financial data from local currencies to the group reporting currency. The conversion formula is Amount × Rate. Lineos applies the correct rate type to each account based on the RATETYPE property on the Account dimension.

Entering exchange rates

1. Navigate to App > [Functional Area] > Rates > Exchange Rate model.

2. For each foreign currency, enter rates for all required rate types: AVG, END, HISTAVG, and CTR.

3. Confirm rates are entered for the correct Time and Version members before saving.

Creating a currency conversion rule

1. Open the consolidation sheet. Click Sheet details > Actions tab > Currency Conversion > Add.

2. Configure Apply to Entity (optional). Select the Conversion Type (END, AVG, YTDAVG, HISTAVG, CTR, Units, or Spot).

3. Set Applicable To — the Version and Group members in scope.

4. Configure the Input Flow and the Output (account and flow members where results are posted).

5. Click Save.

Standard business rules for consolidation

After entering rates and creating rules, verify:

• P&L Currency Conversion report — income statement account conversion is correct.

• BS Currency Conversion report — balance sheet account conversion is correct.

• CTR Currency Conversion report — currency translation reserve calculation is correct.

Ownership structure

The ownership structure defines the entity relationships, ownership percentages, and consolidation methods that drive all group consolidation calculations. Without a correctly defined ownership structure, the system cannot consolidate, calculate NCI, or scope eliminations.

Defining an ownership structure

1. Navigate to App > [Functional Area] > Rates > Ownership Structure model.

2. For each subsidiary, define: Parent Entity, Child Entity, Ownership Percentage, Consolidation Method (Full, Equity, or Proportional), and Consolidation Group.

3. For indirect and multi-tier holdings, define the full chain: parent → intermediate holding → subsidiary.

4. Save the ownership structure.

5. Review the Ownership Structure Verification report to confirm all relationships and percentages are correct.

Note: The Method property in the ownership structure is required for the Relationship field to function correctly in auto journal rules and intercompany elimination rules.

Standard business rules for consolidation

After updating the ownership structure, verify:

• Ownership Structure Verification report — entity relationships and percentages are correct.

• Consolidation Scope report — all entities in scope for the current cycle are listed.