Consolidate Financial Reports of Multiple Companies

[sofia]

Hello,

Is there a way to consolidate financial reports of multiple companies using ERPNext without creating an umbrella company?

thanks!
Sofia

[umair]

Sofia,

This feature is not available out of the box. You should export financial statement for each company from ERPNext and merge it externally.

[sofia]

Hi Umair,

Okay, thanks!

Sofia

[Tropicalrambler]

I think we should sponsor this feature!

Enable reporting to consolidate companies financial statements.
Configurable cascading of Chart of Accounts to child companies (when you create a company, specify if sister company, or simply related company)
Configurable “mapping” of accounts, so that companies with different nomenclature (chart of accounts) can be “seamlessly” merged in reports.

Any other ideas on how to go about this?

[fblauer]

If its a parent/child relationship then child may not be owned 100% by the parent. For example they may only consolidate 50% of the child company. Also, the different companies may have different home currencies. There is also another complication if the year ends are not the same. If there are intercompany transactions, they have to be elimitated by journal entry, for the purposes of the consolidation. It can get complicated. I have a client who has used this utility to link the GL to excel and do the consolidations that way:

Not Found | F9 Financial Reporting

[Tropicalrambler]

You are absolutely right, it depends on the legal ownership structure, meaning which percentage means “merge” and which percentage means “separate accounting” Will look into your proposed excel, but I still insist a plugin should be made where ERPNext can help configure this with relative ease, using best practices.

[fblauer]

That would be great. Being able to include budgets on there might also be useful.

[Tropicalrambler]

So, I perused some more posts and found that indeed, there is a project underway to setup consolidation, and it does take into consideration the usage of % stake in each company. I believe we should move this discussion over to that thread and contribute there.

Consolidation of Financial Statements

I’m starting this app with my initial idea. Consolidated Financial Statement are for a Parent Company with subsidiary and associate relationships. there are adjustments to be made for intra-group, depreciation, financial expense, etc. Currently the reports are available for individual company. I’ve created a Doctype for Consolidation - it establishes Parent, Subsidiary, Associate relationships and percent stake I’ve copied 3 Basic Reports - Consolidated Balance Sheet, Consolidated Cash Flow…

[fblauer]

Looks like a good start. I agree its better to work together

[Sachine_P1]

is there any update on this issue,it will be great addition for corporate companies which is owned by one ownerr or government, they can have a corporate balance sheet, profit and loss, Cash flow and so on.

[realestate]

please add consolidated accounting, and being able to transact between companies. Would be excellent!

[Sachine_P1]

on IFRS consolidated financial reports for multiple companies is one of the basic key points, and now most of the world countries are accepting IFRS so we must incorporate this feature.thanks