In many businesses, different branches of the business are processed as different companies in Pastel.  However, reports will need to be done on the business as a whole, which will require the separate companies to be consolidated into one.

You can consolidate the general ledgers of up to 10 companies at a time when running the Consolidation Assistant, subject to certain conditions.

You can consolidate the general ledgers of up to 10 companies at a time when running the Consolidation Assistant, subject to certain conditions.

The system consolidates companies as follows:

  • You specify a name for the new consolidated company.
  • You specify which existing companies you wish to consolidate.
  • The system creates the company by reading data from the existing companies, leaving them unchanged.

Once the consolidation is complete, you can work in the consolidated company. However, the consolidated company is not a normal company:

  • Although it contains balances, it does not contain transactions. For this reason, you cannot run a data integrity check on a consolidated company.
  • Depending on the degree of synchronicity in the charts of accounts of the original companies, it is possible that the trial balance and / or balance sheet in the consolidated company do not balance.

What you can do in a consolidated company is:

  • Print standard financial statements, and/or use the Report Writer to create custom reports. Since this is a new company, you usually create the reports in another company and then copy the report specifications from that other company.
  • Adjust values in the consolidated company via journal entries. Remember, however, that there is no on-going link between the original companies and the consolidated company. You may therefore prefer to create any journals in the original companies, and then to re-consolidate.

You need to be aware of some limitation as far as consolidating companies is concerned:

  • The system consolidates general ledger and budget balances. The system does not create transactions or sub-ledgers. The consolidated company is a general ledger-only company you can use to generate financial reports.
  • The system assumes that the company parameters in each company you consolidate are the same or compatible. This includes periods, report writer categories, and so on.
  • The consolidated company inherits the parameter settings of the last company you consolidate.
  • The consolidated company inherits any or all reports written with the report writer in the last company.
  • The system assumes that general ledger accounts with the same number represent the same items.
  • The consolidation adds new general ledger accounts into the consolidated company the first time it encounters the account, and thereafter it updates balances for that account. The financial category of a general ledger account is the financial category of the first account the system encounters.
  • There are two possible mismatches:
    • The system generates a warning if there accounts that have the same numbers but different financial categories. In this case, it is possible that the trial balance and/or the balance sheet end up out of balance.
    • If in one company a general ledger account has sub accounts, but not in another company, the trial balance will not balance at the main or sub account level.

This function runs as an Assistant.

Open the Consolidation Assistant by selecting File… Consolidate from the menu bar.  The screen below will display:

The first two screens of the Consolidation Assistant outline the process and the limitations that apply to the consolidation process. Click the Next button to move through these screens once you understand their contents.

On the New Company Name and Password screen, you accomplish two things:

  • You specify a new company name and path. The consolidation process creates this new company, leaving all data in the originating companies untouched.
  • You specify a supervisor password. As a security measure, each company you consolidate must have the same supervisor password as the one you provide.

Click the Next button to move to the Choose Companies screen.

In this screen, you use the first frame to select Pastel data folders.

The frame works as follows:

  • Company folder names display. You choose one by double-clicking the name or by dragging the name to the list box below.
  • Use the [..] line to move up to a higher folder.
  • Drive names display with – signs, for example [-C-].

Once you’ve selected the companies to consolidate, click the Next button.

The Confirm Operation screen displays.  Click the Process button to perform the consolidation.

Note:

  • It is recommended that the chart of accounts of companies to be consolidated be identical.  Differences in the account structure, periods and report writer categories can cause the Trial Balance and Balance Sheet of the consolidated company to be out of balance.
  • A consolidated company has no transactions.  Only balances are consolidated and the customer, supplier and inventory sub ledgers are blank.
Please subscribe to view the full article

Please subscribe to view the full article

You have Successfully Subscribed!