Multi-Company Financial Consolidation
Organizations that operate in a multi-company structure requiring consolidation of operations and financial positions often need additional time to create and publish need financial reports. Beyond the need to perform a month-end or year-end closing process for each individual business entity, the corporate accounting team needs to perform the same processes at the consolidating level of the organization.
In Plex Online, the process of creating a consolidating structure for an organization is simple. An authorized user selects a name for a consolidation group, than assigns the individual entities/subsidiaries to the group. Within Plex, each entity is effectively its own operating company. Larger organizations that consolidate many entities/subsidiaries can design and build complex structures very quickly. Sub-groups can be created to house and report their own subsidiaries, and can be rolled up to a higher consolidation level. There is no limit to the depth of consolidation levels.
Plex Online functionality automatically consolidates entities which have different base currencies. Currencies are translated based on period end spot rate (balance sheet current asset and current liability accounts), period average rate (profit & loss accounts) or using historical rates (long term assets, long term liabilities, and equity accounts). Financial statements at the consolidated level can be designed to report foreign currency gain/loss.
Consolidated statements within Plex Online are reported at a category level. The user has the option to view the consolidated numbers by themselves or to view the consolidated numbers along with each subsidiary published numbers and the eliminations. For data validity, when an accounting period is closed at the consolidated level, none of the reporting entities are allowed to enter or generate transactions for that period. When a consolidated fiscal year is closed, the fiscal year for all reporting entities is also closed.