Consolidation of Financial Statements

ERPNext Accounting
9

@Rajiv @gvrvnk

10

@revant_one The work you are doing is great.I am a CA and not a developer and willing to contribute my accounting knowledge in any way you want .
This work if finished will make erpnext greater than some very costly ERPs
Fred

11
  • We can start with small pull request. Company Relationships
  • Add Child Table on Company instead of Separate Doctype.
    • Parent is Company and Child Table entries are % holdings in companies.
    • Basic Fields : Company (link) and Percentage.
    • Type of Stock, Voting Rights, any other things, if relevant in reporting (future)
  • Identify Validation / UI on Child Table, e.g. parent cannot be in Child Table.

@Tropicalrambler can you start a github issue with checkboxes and detail specification, validations for handling relations, percentages, fields required, Child Table vs Separate Doctype?

@Fred1 we will discuss it on the issue / pull
Post the issue here as well.

12

I will start the Github issue right away. Thanks!

13

@Fred1, @revant_one it seems that this Consolidation methodology is in full accordance with IFRS standards.

I just reviewed the link above and it all checks out! Let us work on this. I have submitted the GitHub issue.
Github issue #7025

14
15

@revant_one @tropicalrambler i hope this great work will not be limited to statement of financial position.Other reports like Statement of Comprehensive Income ,Statement of Cashflow, and Change in Equity should be considered for the project to be holistic. IFRS is a GAAP many nations have adopted and many more are joining.Nations that has not joined this GAAP can still modify the app revant is developing to meet their reporting need.

16

No! by all means not limited to balance sheet only! Will add these:

  • Income statement

  • Cash Flow statement

  • Change in Equity

At some point I am considering the addition of metrics similar to Economic Value Added® (aka Economic profit or similar)

17

@Tropicalrambler That will be great.

18

How do I access consolidated statements in v7?

19

Not existing yet, under development!

Please follow this issue on GitHub fo stay tuned:

https://github.com/frappe/erpnext/issues/7025

20

any update on this issue please?

21

Everybody needs this looks like. Somebody start a bounty. I’m sure it will get funded enough for it to get built quickly.

Thanks

Jay

1 Like
22

I will get the bounty started! Revant was beggining some work on it, I think he eill be happy with a Bounty!

23

Update :
Prerequisite for Consolidation, Ledgers must match,

Added Account No. field to Account and show it in trial balance,
Accountants can download trial balance for each company and compare / process accounts based on their number instead of name.

https://bitbucket.org/mntechnique/ixsystems_erpnext/wiki/Home

4 Likes
24

Great work revant_one, account number will help in the consolidation efforts for the account matching table for subsidiary companies!

25

any update on this issue?

26

Can we have a pull request please?

27

Account numbering needs more thought if it becomes default feature.

Right now there is just a custom data field for account number, Accountant needs to carefully set number for each account. There are no validation on hierarchy/series of numbers given to account.

Community inputs on numbering?

28

Numbering will not only solve consolidation of FS but will solve basic accounting presentation problems currently faced in erpnext.This is a much desired feature