This option supports three consolidation units: "corporate," "by segment," and "by region."
In the Budget Consolidation Option, you can execute six consolidation logic processes sequentially for the detail data of each consolidation unit with a single click.
Using the "Scenario" feature, you can also calculate patterns with different exchange rates and ownership ratios.
1. Six Types of Consolidation Processing Logic
You can execute the following processes sequentially with a single click to calculate consolidated figures.
| No | Logic Process | Description |
|---|---|---|
| 1 | Translation | Translates foreign currencies into the consolidation currency (JPY) based on exchange rates, applying AR (Average Rate) for P/L accounts and CR (Closing Rate) for BS accounts. |
| 2 | Unrealized Profit/Loss Elimination | Automatically calculates and eliminates unrealized profits/losses included in intercompany transactions based on inventory counts. |
| 3 | Income Proration | Automatically calculates non-controlling interest based on ownership ratios, which can be defined in initial settings. If no ratio is set, companies with less than 50% ownership are identified as equity-method affiliates and their profit/loss is adjusted. |
| 4 | Intercompany Transaction Elimination | Automatically reconciles and offsets intercompany transactions based on counterparty details. In the event of discrepancies, adjustments are made automatically according to pre-set priority rules (e.g., credit-side priority). |
| 5 | Allocation | Allocates common expenses and other costs to segments in up to three steps according to defined logic (fixed or variable allocation). |
| 6 | Aggregation | Aggregates the detail data calculated in each processing stage for each consolidation unit (Corporate, By Segment, or By Region) to create consolidated financial statement data. |
Key Points
- You can skip unnecessary processes. Processing completes in a few minutes, even with large volumes of data.
- The system always performs processing in this order.
- You can verify P/L at each step in reports.
- You can realize processes other than those listed through the allocation process.
- Because income proration is applied to unrealized profits/losses but not to intercompany transaction elimination, the system performs intercompany transaction elimination after income proration.
Corporate Consolidation Process (same as consolidation by Segment and by Region)
2. Scenario
In the Budget Consolidation Option, you can maintain multiple setting patterns such as exchange rates and ownership ratios to run simulations.
These combinations of settings are called scenarios.
You can define up to five scenarios with different exchange rates and ownership ratios, and calculate and compare the consolidation results for each scenario simultaneously.