R12 GL Consolidation Documentation for LG Group

CONSOLIDATION:Consolidation is used to merge the multiple subsidiary ledger information in

parent ledger.

Setup for Consolidation:

Step 1: Define Parent and Required Subsidiary Ledgers:

Nav: Setup Financials Accounting Setup ManagerAccounting Setups

Ex: 1. LG Parent Ledger (INR) 2. LG Subsidiary 1 Ledger (USD) 3. LG Subsidiary 2 Ledger (GBP)

Step 2: Define Parent and Subsidiary Ledgers GL Responsibilities

Nav: System Administrator SecurityResponsibilityDefine

Ex: LG_ Parent GL Responsibility (INR) LG_Sub1 GL_ Responsibility (USD) LG_Sub2 GL_ Responsibility (GBP)

Step 3: Assign Parent and Subsidiary Ledgers to Their Related GL Responsibilities.

Nav: System Administrator Profile System.

Ex: 1. Assign Parent ledger to Parent GL responsibility 2. Assign sub1 ledger to sub1 GL responsibility (USD) 3. Assign Sub 2 ledger to Sub 2 GL responsibility (GBP)

Step 4: Define User

Nav: SecurityUser Define

Step 5: Assign All GL responsibilities to User

Step 6: Open Periods in Parent and Subsidiary Ledgers

Nav: Setup Open/close

Step7: Define Exchange Rate type:

Nav: Setup Currencies Rates Types

Step 8: Define Exchange Rates:

Nav: Setup Currencies Rates Daily

Step 8.1: Define Exchange rate between INR to USD

Step 8.2: Define Exchange Rates between INR to GBP:

Step 9: Define Consolidation:

.Nav: Consolidation Define Consolidation.

Step 9.1: Define Mapping Sub 1 to Parent:

Nav: Consolidation Define Consolidation

Click on Mapping Tab

Click on Segment Rules Tab

Save

..Lick Accounting Rules Tab

Save

Step 9.2: Define Mapping Sub 2 to Parent:

.Nav: Consolidation Define Consolidation

Click on Mapping Tab

Click on Segment Rules Tab

Save

Click on Accounting Rule Tab

Save

Step 10: Define Consolidation Set:

Nav: Consolidation Define Consolidation Set

Save

Step11: Complete Translation Options in Parent and Subsidiary Ledgers:

Nav: Setup Accounting Setup Manager Accounting Setups

Click on Update Accounting Options for Parent ledger

Click on LG parent ledger--------------click on Update

Go to Ledger Options

Enter Default Period End rate type : LG Exchange RateEnter Default period Average Rate type: LG Exchange rate Enter CTA account.Then Click on Finish

In This Way we complete Translation Options to Two Subsidiary Ledgers.

Step 12: Create Journal and post in Subsidiary Ledger (SUB1_USD)

Nav: Journal Enter New Journal

Save it and post it.

Step 12.2: Create Journal and post in Subsidiary Ledger (SUB2_GBP)

Save and Post it

Step 13: Run Translation in all Sub ledgers:

Nav: LG_Sub1 Currency Translation

Step 13.1: Run Translation in Sub ledger 1(USD)

Lick on Translate

Click on Ok

Step13.2: Run Translation in Sub Ledger 2(GBP)

Click on Translate

Click on Ok

Step 14: Run Consolidation Transfer in the Parent Ledger:

Nav: LG Parent GL ledger ConsolidationTransferData set

Click on Quarry Consolidation Tab

Click on Transfer Tab

Click on Ok

Step15: Quarry the Consolidation Journals in Parent Ledger and Post it:

Nav: Journal Enter Find

Now Click on Review Journal And Post the Journals..