Consolidation (NL settings)

About consolidation settings

These settings are only relevant for a subsidiary company that you intend to consolidate into a parent company.

These settings are entered in each subsidiary company, not the parent company.

Before you begin

You must:

• Create the parent company.
• Set up the chart of accounts in the parent company.
• Set up the chart of accounts in the subsidiary company.
• Link the parent company to the subsidiary company.

Enter consolidation settings

Note: The Consolidation tab only appears if the company is a subsidiary company and has a parent company set up in System Administration. See Set up consolidation.

Open: Nominal Ledger > Utilities > Ledger Setup > Ledger Settings.

1. Move to the Consolidation tab.
2. Select Enable Consolidation to consolidate the subsidiary company into the parent company.

3. Select the relevant currency setting.

   Although Nominal Ledgers only work in one base currency, you can have your subsidiary companies operating in different currencies and to that of the parent company. Foreign currency conversions are dealt with using the exchange rate set in the parent company.

   • Parent uses same base currency: Select this if the currency of the subsidiary company is the same as that of the parent company. This is set by default.

   • Parent uses different base currency: Select this if the base currency in this subsidiary company is different to the base currency in the parent company.

     • Select the base currency used by this subsidiary company from the list.

       If you do not select the correct currency, inaccurate postings will be made to the parent company.

       Note: The list displays the currencies that are set up in the parent company. The currency of this subsidiary company must be set up in the parent company.

Link your nominal accounts to the parent company

There are different ways to link nominal accounts from the subsidiary company to the parent company:

• Select the linked consolidated account for individual nominal accounts, as you create or amend your accounts.
• Use Amend Report and Consolidation Setting after you have created the nominal accounts, to quickly change category or nominal account codes.
• Apply default nominal accounts (in Nominal Ledger Settings), after you have created the nominal accounts.

To find out about the other ways to link nominal accounts, see Set up consolidation.

To apply default nominal accounts:

1. Select Apply defaults to create the links to the nominal accounts in the parent company automatically. The nominal accounts in your subsidiary company are linked to a nominal account in your parent company (with the same account code).

2. Select Use default cost centre to link to the cost centre you have created in the parent company to represent the subsidiary company. Select the cost centre from the Default cost centre drop-down list.

Sage 200 then automatically assigns consolidated nominal accounts, based on this cost centre. Your chart of accounts in the parent company must match the chart of accounts in the subsidiary company.

Use Amend Report and Consolidation Settings to view the linked nominal accounts and to make any necessary changes.

This overrides any existing consolidated account codes assigned to your subsidiary nominal accounts.

If at a later date you decide not to consolidate the ledger and clear the Enable Consolidation setting, the system will remove the default consolidation accounts from the subsidiary company's nominal accounts.