Group consolidation
Group consolidation is Phase 3 of the consolidation lifecycle. It executes the consolidation calculations in a fixed sequence and produces consolidated financial results. Trigger it from the BPF board or Activities task pane after completing Phases 1 and 2.
Before you begin
Ensure these manual inputs are complete before triggering Phase 3:
Subsidiary Acquisition Template — required for any entity consolidated for the first time. Enter: acquisition cost; net assets at fair value at acquisition date (not book value); PPA fair value adjustments by asset and liability; applicable tax rate for deferred tax.
Manual journal entries — any group-level adjustment journals not covered by automatic rules.
Configuring group consolidation
Open the consolidation sheet. Click Sheet details > Actions > Group Consolidation.
Click Add Matrix. Set Update Method to Rule.
Add the predefined rules — IC Elimination, Auto Journal, and Group Consolidation.
Confirm the execution sequence: Currency Conversion first, then Eliminations, then Auto Journals, then Group Consolidation.
Save. Run from the Features tab Play icon or from the Activities task pane.
Configuring an intercompany elimination rule
Prerequisites: the consolidation sheet and the ownership structure must both exist before you define this rule.
Navigate to App > [Functional Area] > Rules. Click + Add Rule > Intercompany Elimination.
Select the Reference Sheet and Ownership Structure.
Configure Dataset, Account type, and Flow type.
Select the Elimination Method: Seller, Buyer, or Offset.
Set the Relationship filter — Entity and Interco relationship from the Ownership Structure.
Save. Add the rule to the Group Consolidation matrix in the Actions tab.
Configuring an auto journal rule
Auto journal rules generate automated journal entries for investment elimination, NCI, goodwill, deferred tax, CTR, and other consolidation adjustments.
Navigate to App > [Functional Area] > Rules. Click + Add Rule > Auto Journal.
Set the Output Dataset, Applicable To (Version and Group members), and confirm the Active toggle is on.
For each journal line: configure Description, Input Dataset, Input Account and Flow, Formula, Debit Account and Flow, Credit Account and Flow.
Set Relationship — Entity and Interco relationship from the Ownership Structure.
Click Insert Posting to add additional journal lines within the same rule.
Save. Add the rule to the Group Consolidation matrix in the Actions tab.
Standard business rules — execution sequence
The system enforces this sequence. It cannot be changed:
Step |
Rule type |
Why it runs in this position |
|---|---|---|
1 |
Currency conversion |
All entity data must be in the group reporting currency before any eliminations or journals can run against it. |
2 |
Intercompany elimination |
Runs after currency conversion so it operates on converted amounts. |
3 |
Auto journals |
Runs after elimination so auto journals see post-elimination balances. |
4 |
Group consolidation |
Final rollup of all entity data to group level — runs last to capture all prior adjustments. |
Reports
Consolidated financial statements
Consolidated balance sheet — assets, liabilities, and equity at period end.
Consolidated income statement (P&L) — revenues and expenses for the period.
Consolidated cash flow statement — cash movements for the period.
Consolidated statement of changes in equity — equity movements including NCI and CTR.
Analysis and detail reports
Intercompany Elimination report — pre- and post-elimination IC balances by entity pair.
Investment Consolidation report — goodwill, PPA, and deferred tax detail.
NCI report — non-controlling interest equity and profit by entity.
CTR report — currency translation reserve by entity and period.
Entity vs Group comparison — entity-level alongside the consolidated group view.
Control checks
Balance sheet control — Assets = Equity + Liabilities. Blocking.
P&L control — Revenue − Expenses = Net profit. Blocking.
Carry Forward proof — confirms opening balances match prior-period closing balances.