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Set up a subsidiary legal entity for consolidation [AX 2012]

Updated: January 28, 2014

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

The method that you use to prepare subsidiary accounts for consolidation depends, in part, on the extent to which the structure of the chart of accounts in the subsidiary legal entity reflects the chart of accounts in the consolidated legal entity.

Before you start a consolidation as part of period-end closing, complete the preparatory activities for the period-end closing, but do not close the subsidiary accounts until the consolidation is completed. For more information about period-end closing, see Closing the month, period, and fiscal year and Fiscal year closing checklist.

NoteNote

We recommend that you use Management Reporter for Microsoft Dynamics ERP to combine the financial results for multiple legal entities in a consolidated format. Management Reporter lets you create consolidated financial reports across legal entities, use Microsoft Excel to import consolidation data from other sources, and translate amounts into any number of reporting currencies without having to run the consolidation process in Microsoft Dynamics AX.

For more information about how to consolidate transactions by using Management Reporter, see Financial consolidations and currency translation.

If the chart of accounts in the subsidiary legal entity does not follow the chart of accounts in the consolidated legal entity, you can map the main accounts in the subsidiary to the main accounts in the consolidated legal entity. Follow these steps in the subsidiary legal entity.

  1. Click General ledger > Setup > Chart of accounts > Chart of accounts.

  2. Select a chart of accounts. On the Main accounts FastTab, select a main account, and then click Edit.

  3. Select each subsidiary main account that must be mapped to a consolidated main account. On the General FastTab, in the Consolidation account field, enter the account to which the balance or transactions of the selected subsidiary main account must be transferred in the consolidated legal entity. You can enter the same consolidated main account for several subsidiary accounts.

    NoteNote

    If the main account types of the subsidiary accounts that are mapped differ from the main account types of the accounts in the consolidated legal entity, the values of accounts that have a main account type of Total are overwritten during consolidation.

  4. To prepare reports and financial statements for the consolidated legal entity that are based on financial dimensions, map the financial dimensions that are used in the subsidiary accounts to the financial dimensions in the consolidated legal entity.

    1. In the subsidiary legal entity, open the Financial dimension values form. (Click General ledger > Setup > Financial dimensions > Financial dimensions. Select a financial dimension, and then click Financial dimension values.)

    2. Select the financial dimension value to map to a different financial dimension value in the consolidated legal entity.

    3. On the General FastTab, in the Group dimension field, enter the financial dimension in the consolidated legal entity. During consolidation, this financial dimension is assigned to transactions and balances that use the selected financial dimension in the subsidiary legal entity. The financial dimensions that you enter here must be used in the consolidated legal entity. You can assign the financial dimension that is used as the group financial dimension to several subsidiary financial dimensions.

  5. If you are performing an online consolidation, use the Consolidate [ Online ] form in the consolidated legal entity. (Click General ledger > Periodic > Consolidate > Consolidate [Export to].) To make sure that the transfers occur as you intend, select the Use consolidation account: check box on the Criteria tab.

    You must also select the appropriate financial dimensions on the Financial dimensions tab in the Consolidate [ Online ] form. For each financial dimension that you select, enter a number in the Segment order field to indicate the order in which the dimensions are displayed

The main accounts in the subsidiary legal entity might have the same account numbers and the same structure for the chart of accounts as the main accounts in the consolidated legal entity. In this case, you do not have to manually map the main accounts in the subsidiary to the main accounts in the consolidated legal entity.

Follow this step in the consolidated legal entity: In the Consolidate [ Online ] form, select the Use consolidation account: check box before you start the consolidation. During consolidation, transactions and balances are automatically transferred to the correct account.

NoteNote

If the accounts do not correspond, the consolidation stops, and a message is displayed.

You can perform the consolidation even if a chart of accounts has not already been created in the consolidated legal entity.

  • If you have planned the account structure to use in the consolidated legal entity, you can map the subsidiary accounts to this structure.

  • If you do not map any subsidiary accounts, the accounts in the consolidated legal entity are created automatically when subsidiary data is transferred to the consolidated legal entity. These accounts are based on the main account. Subsequent data is accumulated in accounts in the consolidated legal entity that have the same account number as the subsidiary accounts.

Regardless of whether you have mapped accounts, clear the Use consolidation account: check box in the Consolidate form in the consolidated legal entity before you run this kind of consolidation.

NoteNote

You can use this method to create a chart of accounts in the consolidated legal entity from the chart of accounts in one of the subsidiary legal entities. Delete the consolidation transactions by using the instructions in View and delete consolidation transactions. Then assign an appropriate consolidation conversion principle to each consolidated main account, and run the consolidation for all the subsidiary legal entities.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).
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