26 Overview to Multi-Site Consolidations
This chapter contains this topic:
26.1 Multi-Site Consolidations
Many organizations with subsidiary or branch operations have JD Edwards World systems running in multiple locations. Most of these organizations consolidate general ledger information at the headquarters level for statutory and management reporting. In many instances, organizations specify the account ranges in the corporate chart of accounts where information from subsidiary or branch operations must be consolidated.
Multi-site consolidations enable you to consolidate account balances at multiple locations so that you can send the information to a central location. At the central location, you process the resulting journal entries into the general ledger using batch journal entry processing.
The information you consolidate is accessible to all standard JD Edwards World programs.
Working with multi-site consolidations consists of:
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Defining business unit structures
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Defining account structures
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Defining multi-site consolidation rules
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Consolidating multi-site information
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Running integrity reports
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Sending consolidated balances
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Generating and processing batch journal entries
Two types of locations are involved in multi-site consolidations:
| Location | Explanation |
|---|---|
| Source | Any of the locations where consolidated account balances originate |
| Target | The central location (headquarters) which receives the consolidated account balances |
The following example illustrates how multiple source locations might consolidate account balances to send to a central target location:
Figure 26-1 Consolidating to Send to a Central Location
Description of "Figure 26-1 Consolidating to Send to a Central Location"
At each source location, the multi-site consolidation process consists of the following steps:
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Define the business unit structure
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Define the account structure
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Define multi-site consolidation rules
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Consolidate multi-site information
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Run integrity reports
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Send consolidated balances to the target company
Each source location defines its own consolidation rules, but all consolidations must meet the requirements of the target location.
At the target location, the multi-site consolidation process consists of the following steps:
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Run integrity reports
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Generate batch journal entries
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Process batch journal entries
The following illustrates the multi-site consolidation process:
Figure 26-2 Multi-Site Consolidation Process
Description of "Figure 26-2 Multi-Site Consolidation Process"
You can have more than one consolidation. After you consolidate account balances at multiple source locations and send them to a single target location, you can consolidate balances at multiple locations (that were previously targets, but now sources) and send them to yet another target location.