Example of Balance Transfer Consolidation Method

If multiple subsidiaries and the corporate ledger don't share the same chart of accounts and calendar, use the Balance Transfer Consolidation method and reporting solutions.

Here are the reporting solutions: Financial Reporting, General Accounting Dashboard, Smart View, online inquiry, Oracle Analytics Publisher, and Oracle Transactional Business Intelligence (BI).

The following figure illustrates a scenario where two subsidiaries use their own local charts of accounts and currencies. The corporate ledger uses a corporate chart of accounts and corporate currency. The balance transfers convert the local balances to the corporate chart of accounts and currency.

With the Balances Transfer consolidation method, perform the following tasks:

• Translate balances to the corporate currency for ledgers not in the corporate currency.

• Create a chart of accounts mapping to map subsidiaries account values to the corporate chart of accounts.

• Transfer balances from the subsidiaries to the corporate consolidation ledger using the Transfer Ledger Balances process, which transfers between any source and target ledger pair, or the Transfer Balances to Secondary Ledger process for balance level secondary ledgers. In the parameters, select:

  • Source and Target Ledgers

  • Chart of Accounts Mapping

  • Amount Type

  • Source Ledger and Target Ledger Periods

  • Run Journal Import

  • Create Summary Journals

  • Run Automatic Posting

  • Balancing Segment

• Create eliminating entries using journal entries or the Calculation Manager in the corporate consolidation ledger.

• Generate a report on the consolidated balances net of eliminations in the corporate consolidation ledger.