This workflow is used to consolidate the financials of your Subsidiary companies for a single period only. Use this workflow if you want to review a trial balance like extract of financials from each subsidiary company and the resulting consolidation journal entry prior to posting into your consolidation Parent company.


You can also use the Multi Period / Company workflow to extract and post consolidation entries for all companies for a period in one button click (time saving) and if you wanted to later review the extract details, you can use the Single Period / Company consolidation workflow to lookup the details after the fact.


Lastly, this workflow enables you to run a full quarter or full year consolidation only - useful if you want to consolidate multiple prior years and don't need or want monthly financials.



HOW TO USE THIS WORKFLOW


  • STEP 1 (PERIOD SELECTION)- Select the period you need to consolidate. Your options include:
    • fiscal month (i.e. calendar month in QuickBooks)
    • fiscal quarter, as defined by the fiscal calendar of the parent
    • fiscal year, as defined by the fiscal calendar of the parent
    • When you select a consolidation period, any connected subsidiary company that has balance activity in that period will immediately display in the workflow matrix table


  • STEP 2 (EXTRACT SUBSIDIARY BALANCES) - click the 'Run Workflow' button in the Extract Subsidiary Balances column to extract the required account balance details from each of the QBO subsidiary companies. You can select all to run this workflow across all subsidiary companies


  • STEP 3 (REVIEW & POST)- for each subsidiary company, click the 'Review' button;
    • The table on the left side is simply a display in trial balance like format of what was extracted from the underlying QBO company for that subsidiary. The beginning balance, period activity and ending balances are all displayed in DR(CR) format
    • The table on the right side is a display of the extracted period activity balances now in the format of the parent company COA. The balances are displayed in a traditional DR/CR trial balance format - this is the consolidation journal entry that will be posted to your QBO parent company
    • Click the 'Confirm & Post' button to post the Consolidation JE to your QBO parent company, otherwise you can click the 'Reviewed' button to mark that you have reviewed the JE but not ready to post it
    • Repeat the review & post step for each subsidiary company that has period activity to consolidate


  • STEP 4 - OPTIONAL  (CONFIRM & POST) - if you reviewed but did not post the consolidation JE you can then select the 'Confirm' button to again review then post the consol JE



CONSOLIDATION JOURNAL ENTRY DETAILS

  • Journal entries are posted to the division name (location category) our system created in your QuickBooks Online parent company for each of your connected subsidiary companies
  • Journal entries are posted to the last day of the fiscal period you selected
  • If Class IDs are used in the QBO subsidiary companies, you will see Class IDs carry across when the consolidation journals are booked into your QBO Parent company
  • To make it easy to identify the journal entries our system posts to your parent company, we use the following syntax for the journal entry number for consolidation related entries:
    • PDXXX(realm ID of QBO company)


CONSOLIDATED REPORTING

  • When you have completed posting consolidation journals for each subsidiary, you will finish consolidation and reporting work in your QBO parent company
  • Adjusting entries to consolidated financials such as intercompany eliminations, minority interest, etc. are booked directly in your QBO parent company. You can create a division name (location value) in your QBO Parent company to segment your adjusting entries from your subsidiary financials
  • Remember, you can modify P&L's, Balance Sheets and CF reports in the QBO to filter or display by Division (location) and Class so you have complete flexibility to run segmented and consolidated reports