When a firm grows and expands beyond its parent, the financial accounts must be carefully monitored and reports reviewed on a regular basis. Acquisitions, mergers, and various investments are all part of the growth process. It is critical to keep track of and analyze investment and acquisition accounts. The financial accounts of the subsidiary firms are consolidated and added to the parent company for reporting purposes. Consolidation is the term for this procedure.
Consolidation is defined as the process of merging two or more items into a unified whole. Consolidation, in terms of accounting, is a more complicated procedure that requires extra caution when combining. During the consolidation of financial statements, the subsidiary company's assets and liabilities become the parent company's assets and liabilities, respectively.
Previously, the accounting and finance departments of the firm performed the consolidation procedure manually. This may raise the chances of making mistakes and causing confusion. Many firms began utilizing software to assist in the consolidation of financial statements as technology advanced. Odoo ERP is a versatile and up-to-date solution for managing your business. Odoo makes it simple to manage business functions. The firm may be operated efficiently and successfully with the help of centralized databases and integration modules.
Accounting and finance modules are included in Odoo 14. The Consolidation module helps with the consolidation of financial statements. Odoo Applications makes it simple to install the module.
Let's have a look at the features and advantages of the Odoo 14 Consolidation module in this article.
Efficiency
The data and work process will be nicely structured using the Odoo 14 Consolidation module. The consolidation reports may be viewed in full detail and reviewed quickly. Each subsidiary's financial statements are clearly stated.
Accessibility
You can see all of the aggregated accounts data on the dashboard. This will make it easier for you to access the records. If you wish to see prior consolidated records while conducting the consolidation process manually, it will take a long time. Every consolidation record may be viewed directly from the dashboard with the Odoo 14 Consolidation module.
Easy to create new Consolidation
You may quickly build a new consolidation analysis in the Odoo 14 Consolidation module. The dashboard consolidation creation page will appear after hitting the CREATE button. By providing the name of the consolidation, the target currency, the start date, and the end date. The list of firms and the time will be presented, along with data such as the Consolidation Rate, Average Currency Rate, and End Currency Rate.
Define, Setup, and Create
There will be sister firms and subsidiaries acquired as the company expands. It is not required for all subsidiaries to use the same currency as the main business. When you try to merge financial statements, this will be a problem. The target currency in which the consolidation reports must be generated may be defined in the Odoo 14 Consolidation module. You can choose the technique for converting the company's currency into the target currency once you've chosen the target currency. Closing Rate, Average Rate, and Historical Rate are the three types of techniques available in Odoo. The closing rate technique employs the company's currency exchange rate at the end of a trading day or month. Historical rates are calculated using the supplied currencies' historical data and how they were traded in the past. The average rate is the rate at which the currency of a subsidiary business may be converted into any other currency. This will make the consolidation's currency conversion simple, and you won't have to perform it manually. You can set the currency rates after you've chosen a conversion method.
Journals
The Odoo 14 Consolidation module makes it simple to examine and evaluate the consolidation entries and journals of all companies that work under the same parent business. By selecting the Consolidated entries option from the Operations page, you may see consolidated accounts, as well as their analyzing periods and balances. The Filters option allows you to see manually produced journals and automatically generated journal entries separately.
Configuration
Odoo ERP's major benefit is that it allows you to adapt most of its modules to fit your business's needs. Periods, Account Groups, and Consolidation may all be configured under the Consolidation module. Simply select the Consolidation option from the Configuration menu to generate a new financial statement consolidation report. You may look at the current consolidated reports or create a new one by clicking the CREATE button. You may also see the target currency for each consolidation procedure, as well as the number of analyzing period records and consolidated records inside each consolidation.
Analyzing Period
You may simply specify the analyzing period of the consolidation using the Odoo 14 Consolidation module. You have control over the start and finish dates of the consolidation process. You may simply obtain a report for the specified periods if you want to have the report generated automatically. This functionality allows you to start the procedure at any point in time.
Account Groups
The Odoo 14 Consolidation module makes creating and updating account groupings a breeze. It would be easier to evaluate the reports if you create account groups. The consolidated accounts may be organized into account groups and subgroups, and you can choose which parent account group each account belongs to.
Closed and Re-compute Consolidation
After making modifications, you can recomputed the consolidation. After you've completed the consolidation, you may use the Closed tag to assist you remember what you've done. The modifications will be incorporated in the journals during recomputing, and you will get an updated report.
Saves Time
Consolidation takes a long period and requires careful monitoring. The Odoo 14 Consolidation module makes the process lighter and saves a lot of time. You may define the firms to be combined, set up consolidated accounts to prepare the chart of accounts, and construct an analysis period with only a few clicks. From the dashboard of the produced consolidated reports, you can see the consolidated balance. Each consolidation report's mapped and unmapped accounts are listed individually, and you may glance at them quickly.
The Consolidation module in Odoo 14 is a fantastic tool for organizations with subsidiaries in other countries. The authorities can consolidate finances in a straightforward and well-organized manner. The consolidation module makes accounting easier through setup and integration.