To setup the consolidation process, perform the following tasks:

1. Define the consolidation companies in the Intercompany Landscape application and set their Company Type as Consolidation.
   

In the Administration Console, on the Company Registration page, for each branch, head office, and lower level consolidation company, choose the Browse button next to system name. In the Company Details window, update the following properties:

Note

All companies for which the Company Type is set as Consolidation will appear in the consolidation details table.

1. Consolidation Source
   Indicates whether the financial data for consolidation is retrieved from the company in the company’s local currency or in its system currency. Choose an option from the dropdown list. If you choose System Currency, the system assumes that the system currency is same as the consolidation currency (that is – Local Currency Code of the Consolidation Company).
2. Consolidation Percentage 
   This field indicates the percentage of share that the organization holds in the company. Enter the percentage that indicates how much of each account for this company should be included in the consolidation. Do not enter the percent sign. For example, if the consolidation percentage is 50%, enter 50. If you are consolidating to more than one company, ensure that the sum of the consolidation percentages for all of the consolidation companies is not greater than 100.
3. Journal Voucher Consolidation 
   The Intercompany Integration Solution allows you to consolidate journal vouchers as part of the consolidation processing. You can set the system to export/import journal vouchers from branch companies.

To set up this task, perform the following steps:

1. On the Preferences page of Intercompany Administration Console, click the Configure Consolidation link in the left frame. The configuration parameters are displayed in the page body.
   
2. Select the Replicate Journal Voucher checkbox.
   
3. Choose the Save button.
   

2. Use the Chart of Accounts window of SAP Business One in the consolidation company to prepare a consolidation chart of accounts. Ensure that none of the accounts are set as control accounts.
   

This chart of accounts:

1. Is independent of the charts of accounts in the other branch companies
   
2. Should be based on the reporting needs of the company
   

You prepare the consolidation chart of accounts for the purpose of generating financial statements, either to meet the requirements of statutory authorities or to accommodate corporate-internal reporting requirements.

The chart of accounts in the individual branch companies may differ from one another.

3. Consolidation Account Setup 
   Setup the Consolidation Account Setup in the consolidation company. 

To display the Consolidation Accounts Setup window, choose Administration → Setup → Intercompany → Consolidation Accounts Setup

4. Chart of Accounts Distribution
   Use the Chart of Accounts Distribution window in the Consolidation Company to perform the following steps:

To display the Chart of Account Distribution window, choose Administration → Setup → Intercompany → Chart of Account Distribution

Export the consolidation chart of accounts from the consolidation company to the B1i server by choosing the Export button in Export tab. Choose the Status button to view the status of the export process.

In Import tab - one by one select a branch code from the dropdown list and choose the Import button. The dropdown only displays the companies which are setup to consolidate into the logged in consolidation company. Choose the Status button to view the status of the import process. Repeat this step for all branch companies.

Alternately, the user can select All from the dropdown list to import the consolidation chart of accounts in all the companies in one go.

Caution

If any changes are made to the consolidation chart of accounts, you must re-export and import the consolidation chart of accounts.

Repeat above steps for all the consolidation companies.

5. Users in the branch companies:
   

1. Can view the consolidation chart of accounts from the SAP Business One Main Menu: Consolidation → Consolidation Chart of Accounts.
   

Note

Application will open the consolidation company selection window; if branch company is consolidating in to more than one consolidation company.

2. Cannot make any changes to the consolidation chart of account from this window; it displays the consolidation chart of accounts for reference only.
   

Consolidation Chart of Account Window

Field	Description
Account Code, Account Name	Displays the account code and name of the G/L account.
Title / Active Account	Indicates whether the G/L account serves as a Title or an Active Account: Title: G/L account with child accounts that can be summarized. Active Account: G/L account that must be associated to one of the groups in order for it to be included in the total.
Level	Indicates the level of the G/L account: Level 1: Drawer level; not valid for Active or Title accounts. Level 2 to 4: Suitable for either Title or Active accounts. Level 5: For Active accounts only.
Drawer	Indicates the name of the drawer.

6. Exchange Rate Translation 
   For each branch company the user must update the Exchange Rate Translation Method on the SAP Business One Chart of Accounts window.

If the local currency of the company is different than the consolidation currency the system uses from the following three translation methods for exchange rates while translating the account balances:

1. Historical Rate – The system will use the exchange rate defined for the date of the journal entry. This is set by default in chart of accounts.
   
2. Closing Rate – The exchange rate defined for the closing date of the consolidation period. For example, if consolidating between Jan 1st and Jan 31st the closing rate will be the exchange rate for Jan 31st.
   
3. Average Rate – A user-defined exchange rate is set in the Average Rates window.
   

Note 

1. You can also use Define Account Consolidation Translation Method window available in Intercompany Setups to update the consolidation translation method for a group of accounts in the chart of accounts. To display the Define Account Consolidation Translation Method window, choose Administration → Setup → Intercompany → Define Account Consolidation Translation Method.
   
2. Exchange rates for translation are determined from the consolidation company.

7. Consolidation Account Mapping 
   Users in the branch companies must specify accounts for consolidation. For each active G/L account in each branch company, specify an active G/L account in the consolidation chart of accounts to which the balance will be transferred on consolidation. The account mapping can be performed using the Consolidation Account Mapping window in SAP Business One.

Note

If a branch company is consolidating to more than one consolidation company, the application opens the Consolidation Company Selection window.

Consolidation Account Mapping Window

Side	Field	Description
Branch Company Information	Account Code	G/L account codes of the active accounts from the branch company‘s chart of accounts.
Branch Company Information	Account Name	Name of the G/L account.
Branch Company Information	Drawer	Drawer code of the G/L account.
Branch Company Information	Level	Level of the G/L account.
Consolidation Company Information	Account Code	Press the TAB key in this field to display a list of G/L accounts from the consolidation chart of accounts.  Select a G/L account to enter its code. On consolidation the balance is transferred to the selected account.
Consolidation Company Information	Account Name	Name of the G/L account.
Consolidation Company Information	Drawer	Drawer code of the G/L account.
Consolidation Company Information	Level	Level of the G/L account.

Caution

The user must map all active G/L accounts in all drawers to the consolidation chart of accounts

Note

1. If the chart of accounts structure in a branch company is identical to that of the respective in the consolidation company, then choose Auto Map Account to automatically map the G/L accounts to the consolidation chart of accounts. 
   
2. You can also use Microsoft Excel-based Consolidation Account Mapping Tool to update the Consolidation Account Mapping window.

To display the Consolidation Account Mapping Tool window, choose Administration → Intercompany Tools → Consolidation Account Mapping Tool.

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Caution

This step must be completed in all companies that will consolidate into the consolidation company.

Next Step: Manual Consolidation in Intercompany Solution