Simplify Multi-entity Consolidation with Consolidated Budgeting and Planning

By implementing a budgeting and planning tool that helps you automate global consolidation, you can save hours every month on your intercompany eliminations and provide consolidated financial reports in minutes. For example, with AppComputing integrated with Acumatica, you’ll be able to manage complex ownership structures easily.

Global mergers and acquisitions broke records again in 2021 according to a report from PwC and are on track to be even higher in 2022. As a finance leader, it will be important to keep ahead of the anticipated demand to supply consolidated financials quickly and accurately. If you’re doing that in Excel today, you may already be suffering from redundant data entry and time-consuming foreign exchange calculations. There is a better way to eliminate those pain points and increase financial accuracy and efficiency.

Streamline the Consolidation Process

AppComputing’s Global Consolidation streamlines the entire consolidation process across all the operating entities, for either simple or complex multi-layer ownership structures. Each operating entity can use Acumatica ERP to manage entity operations and use the AppComputing platform to manage entity consolidation across global operations.

This integrated solution provides users visibility into each operating entity so you can maintain control of each regional group, as well as the entire global organization.

Simplify Complex Ownership

Global Consolidation enables you to control all your consolidations automatically including currency conversions, intercompany eliminations, consolidations, and consolidated financials. With AppComputing, it is easy to configure multi-entity relationships in a number of useful ways, including:

• Configure multiple subsidiaries in any combination of foreign or domestic entities.
• Reflect subsidiaries that own other subsidiaries that will need to roll up to the parent company as well.
• Indicate whether each of those subsidiaries is wholly, partially, or majority-owned.
• Set the percentage the parent will share costs and margins when the subsidiary is also a service provider.
• Specify the VAT rate where applicable.

Automate Foreign Currency Exchange

Conversion rate assignment for subsidiaries that use a different currency is managed on the backend with AppComputing’s user-friendly configuration controls. Each currency rate assignment is based on the best practices and requirements specified by International Financial Reporting Standards (IFRS). Rates can be set by account in your chart of accounts. You can choose from several conversion rate selections including:

• Average rate
• End of month rate
• Historical rate
• Special rates you configure

Instant Intercompany Eliminations

Once a conversion rate is assigned, now you can set up automatic elimination by simply checking a box to eliminate due to and due from intercompany transactions. The application automatically eliminates any intercompany transactions including investments in subsidiaries. You can also eliminate intercompany revenue with a click of a box for any subsidiary that rolls up to the parent. Dynamic elimination control in AppComputing allows you to pick and choose the transactions you need to eliminate.

These system defaults are preset to eliminate the due to/due from, cost-plus model, revenue and expense. This is controlled by the intercompany relationship configuration at the application level and cannot be changed by users inadvertently, giving you better internal controls.

Quick Consolidations

AppComputing makes your consolidations much easier. Start by selecting the subsidiary to consolidate. In most cases, your consolidations start at the bottom layer of your subsidiaries. Once you have completed your currency conversion to your pre-configured base currency, you can roll up the subsidiary’s data to the parent level instantly.

The application will calculate and carry over the proper amounts based on the percentage ownership you set up for the company relationship, making it easy to see top-level financials. And your consolidated reports can be exported to Excel, making it easy to share with investors, management, etc.

Get Started

If you’re ready to start saving time and increasing the accuracy of your multi-entity consolidations, contact the experts at AppComputing. We’ve helped companies just like yours achieve granular visibility with increased accuracy and tighter controls, and we can help you too. Contact us today to see a demo of Global Consolidation and find out how to automate your consolidations and eliminations.