Validating results with reports in the consolidation process involves ensuring the accuracy and consistency of financial data.
By using reports, you can check that the data has been processed correctly and find any errors that need to be fixed. Proper validation helps maintain the integrity of financial statements.
The useful reports include:
Balance Sheet Consolidated
This report is useful for seeing a consolidated working paper-style report for each level in the Entity hierarchy. The Elimination entries are broken down by Audit members. It's easy to know where the consolidated amounts are coming from. This report also has three features that are helpful in drilling into the details of each consolidated amount.
- Details
- Calculation lineage
- Contribution
The consolidated balance sheet displays the financial position of the company across all locations. It uses consolidation entries to eliminate intercompany transactions and present a single, accurate financial picture. Each column shows how each Entity contributed and what needs to be eliminated to get a real consolidated view. The final column shows the aggregated figures after applying all elimination entries.
Details
It allows the user to drill into a specific Audit member and view which entities contribute to the total consolidated amount.
The Journal Detail report displays the data broken down by entity. The report displays the Entity's account data.
Calculation Lineage
You can further drill into any account from the Details view to view how an amount is calculated. You must select an amount, right-mouse click, and select Calculation Lineage. It lets you look at the account's calculation structure based on different entities and find any differences or inconsistencies.
Contribution
It allows the user to view the contribution of each entity by the Audit members. It breaks down various accounts' contributions to the overall financial picture. The report shows:
| Parameter | Value |
| Accounts | It lists the individual accounts, for example, Cash, Accounts Receivable, and Intercompany Receivables. |
| Input | It shows the initial input value for each account. |
| Source GL | It's the source general ledger account value. |
| Source | It's the source of the data. |
| Local Reporting | It's the value of the account as reported in local currency. |
| Intercompany Eliminations | It displays adjustments made to eliminate transactions between related entities (Intercompany). |
| Shares | It represents the share allocation, if applicable. |
| Total Intercompany | It's the sum of the Intercompany Eliminations. |
| Stock Holder Equity | It's the amount impacting Stockholder Equity. |
| Exchange Difference | Displays the adjustments for currency exchange rate fluctuations. |
| Profit on Inventory | Displays the profit recognized from changes in inventory valuation. |
| Total Other Automatic | Shows the sum of all other automatic adjustments. |
| Consolidation Adjustment | Displays further adjustments made during the consolidation process. |
The report helps you understand the parts of the consolidated financial statements. It lets you look at how each account contributed and find areas that need to be looked into more or changed.
Consolidated Financials – by Audit
This report details the reconciliation of financial accounts to the final reported figures. It shows how various adjustments are applied to arrive at the consolidated values. The columns represent different Audit members in consolidation process.
For example, intercompany eliminations remove transactions between related entities to avoid double-counting. The equity method is used to account for investments in Associate companies. You'll see detailed breakdowns by account, allowing you to track changes at each step. This granular level of detail allows for a better understanding of the final reported numbers.
Consolidated Financials – by Entity
This report shows the contribution shows the contribution of each entity to overall consolidated numbers at group level by Account. Each entity's financial figures are displayed separately for detailed analysis, with a final consolidated total.
Intercompany Matching report
The Intercompany Matching report helps identify discrepancies between intercompany transactions. It lists intercompany transactions by entity and intercompany pairs, showing the amounts and highlighting any differences. A checkmark indicates a matching transaction; a red X indicates a mismatch.
You can review unmatched items and take necessary actions to correct any inconsistencies. The Run Journal Action button allows you to process identified corrections (after review and approval). Max Difference indicates the maximum allowable discrepancy before a manual review is required.
| Parameter | Value |
| Audit | It identifies the specific Audit member being reviewed. |
| Accounts | It specifies the intercompany account. |
| Movement | It shows whether the account had an increase or decrease. |
| Amount | It displays the numerical value of the transaction. |
| Difference | It displays the discrepancy between the receivables/income and payables/expense entries for a given transaction. A difference of zero indicates a match. |
| Check | It indicates whether the entries:
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Validation – Movement
The Movement Schedule provide the breakdown on various balance sheet accounts by various movement dimension members like opening, additions, variation and closing.
| Parameter | Value |
| Opening | It shows the beginning balance of each account for the period. |
| Allocation | It represents the allocation of Current Earnings to Retained Earnings on balance carry forward. |
| Business Acquisition | Displays the changes resulting from business acquisitions. |
| Decrease | Shows the reductions in the account balance. |
| Variation (Auto) | Displays the calculated or system-generated changes. |
| Amortization | Shows the amount amortized during the period. |
| Result of period | Captures current period's net profit from P&L to Current Earnings account. |
| Closing | Specifies the ending balance of the account. |
| Difference | Displays the variance between closing and sum of opening with all other movements. |
| Check | It shows if the closing balance calculation has been validated. |
Validation – Opening Period
This report allows you to validate an Entity's opening balances for a given period. It compares opening balances with closing balances from the previous year. The report also flags any discrepancies.
| Parameter | Value |
| Closing | Shows the closing balance for each account at the end of the previous year. |
| Opening | Specifies the opening balance for each account. |
| Difference | Displays the difference between the closing balance of the previous year and the opening balance of the current year. |
| Check | A checkmark indicates that the opening balance entered matches the closing balance from the previous period for that specific account. |
Validations – Validation Rules
This report provides a detailed breakdown of the financial data for Movement validation. The table shows the account, transaction type, amount, and a check if there are any differences based on set rules.
For each item, the report displays the calculated amount and a check mark (or red circle) indicating whether the value passes validation checks. Discrepancies between expected and actual values are flagged for review.
