CONSOLIDATIONS OVERVIEW

In Consolidations, you use multiple companies to create a transfer of summary balances and send those balances to the consolidation ledger for financial and project reporting. You can also transfer summary balances between companies within the same database. You can complete transfers within the same database ("internal") or to another database ("external") in a different currency.

Each Consolidations screen represents a different step in the consolidations process. After you run the consolidation, you can create elimination entries or make any other necessary adjustments. Consolidation entries are posted as journal entries in the General Ledger. After you make adjustments, you can run a consolidated trial balance report or a consolidated financial statement report.

The terms "company" and "location" are used interchangeably throughout this help system and have the same meaning.

Consolidations and GAAP Regulations

The consolidation process is in compliance with US Generally Accepted Accounting Principles (GAAP) rules and regulations. You can create consolidations using an Inception-to-Date or Year-to-Date calculation method. The different financial statements are translated using the applicable currency exchange rates as identified under US GAAP. Additional capabilities (such as using historical and weighted average historical exchange rates to translate stockholders' equity accounts) are described in the help system.

Mapping Tables

The transfer of the summary balances from the subsidiaries uses mapping tables to allow each subsidiary to have its own chart of accounts. Costpoint uses the mapping table while creating the transfer to map the subsidiary accounts and organizations to the accounts required by the consolidation ledger.

The primary purpose of the mapping table is to allow for summarization of accounts to a higher level and summarization of internal organizational information to a higher reporting level required by the consolidation ledger. However, the mapping table can also support a true account/organization conversion. The transfer is in the form of a summary, balanced entry that you can load and then post to the consolidation ledger.

Summary Project Data

In addition to the general ledger information, Costpoint:

• Transfers summary project information for inquiry and reporting

• Transfers Account, Organization, and Project Master tables so that reports and inquiries show names and related project data

• Summarizes and transfers Project Summary (PSR) and Revenue Report tables

These transfers provide the consolidation company with summarized project reports and inquiries.

When to Create Consolidation Entries

You can create consolidation entries as often as necessary. You should post accounting transaction journals to the General Ledger before creating consolidation entries. Export projects only after computing burden and revenue and after creating report tables.

Consolidations - General Capabilities

Using Costpoint Consolidations, you can:

• Use the Inception-to-Date or Year-to-Date calculation method

• Override the default historical exchange rate to use weighted average historical rates to translate stockholders' equity accounts

• Use wildcards to create a mapping from existing accounts and organizations to consolidation accounts and organizations

• Create trial balance and consolidated financial statements by organization

• Process data in the host or consolidation company

• Make adjustments to the consolidated ledger

• Create elimination entries for intercompany revenue and expenses

• Receive transfers from multiple subsidiary databases or companies within the same database

• Complete a transfer in a currency different from your functional currency (sending company only)

• Select the level of project, organization, and account to transfer

Consolidations— Limitations

Consolidations contains the following restrictions:

•  Consolidation ledger transfers are made by period only.

•  Detail transactions are not available in the consolidation ledger.

•  Labor and employee information is not available in the consolidation ledger.

•  Project detail, by transaction, is not available.

•  You must run project reports and inquiries at the transfer level or higher.

Table Accessed During Consolidation

Costpoint accesses the following tables during the consolidation: