If your organisation is made up of several subsidiary companies, you can use consolidation in Sage 200cloud to produce management reports at the parent company level.
If you're a multi academy trust, you can use consolidation in Sage 200cloud to create reports at trust level, such as the SOFA report, that include the required financial information for all the schools within the trust.
How it works
- The consolidation is run from each subsidiary
- Each nominal account (Code, CC and Dept) in the subsidiary
company schoolis linked to a nominal account in the parent company reporting company.
- The balance of all nominal accounts, at the end of a selected period, is transferred from each subsidiary to the parent
company reporting company. This is posted as a single consolidation transaction in the parent company reporting company.
- The balance of each nominal account in the subsidiary is posted to the linked nominal account in the parent
company reporting company.
- The value of the consolidation transaction is the difference between the actual trial balance in the subsidiary, at the end of the selected period, and the trial balance the last time the consolidation was run.
company reporting companyshould only be used for reporting on consolidated balances, grouped together from a number of subsidiaries. The parent company reporting companyshould not be used for trading, i.e. transactions should not be entered into the parent company reporting companydirectly.
- The parent and all subsidiaries must have the same base currency.
The parent and all subsidiaries should all have the same chart of accounts.
This includes the same cost centre, department,
andreport category and SOFA category.
The parent and subsidiaries should have the same accounting periods.
Nominal account balances are passed to the parent by accounting period. If the accounting periods are different in the parent and subsidiary companies, this could lead to discrepancies in the your financial reports.
If the only consolidated report that you need to run from your parent
company reporting companyis an annual management report, such as the SOFA report, then we recommend that you only run the consolidation once a year, at the year end.
Just consolidating the balances once a year makes errors less likely.
This is because:
- All transactions should be posted to the correct accounts in your subsidiaries by the end of the year.
- It'll be easier to check that any new nominal accounts that have been added to a subsidiary
company schoolare linked correctly.
- If mistakes are made, you only need to correct them for one period rather than 12.
Consolidating to more than one parent
When consolidating, the parent should only be used for reporting purposes. If you want to consolidate to more than one parent, then you'll need a Sage 200cloud company for each parent.