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Solver Global

Financial Consolidations for your Dynamics NAV Experience


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Scores of Microsoft Dynamics NAV users are managing the finances of multiple subsidiaries under a parent company.  Consolidating company information from more than one organization, at times dealing with multiple currencies and different country regulations, can be a logistical challenge without the organizational features and functionalities of a modern, dynamic financial reporting and consolidations tool.  The rapid growth in size and importance of company data is important to the fine-tuning of decision-making for the future of your business.  Now is as good a time as ever to join other executives in seeking an easy-to-use, but powerful solution to the tedious challenge of aggregating data into a unified set of financial reports.  This article is for you if you are a Dynamics NAV customer who has to oversee more than one organization’s financial information – and it is an essential read as there are not a lot of options that are both business user friendly and accelerated for the NAV experience.

Let’s start by defining the term: financial consolidation refers to aggregating financial data from disparate subsidiary companies into one set of financial statements.  These financial reports consolidate the data of the entities that comprise a parent company in one clear, straightforward functionality by converting currency when more than country is involved, as well as transactional eliminations for subsidiary exchanges and any other adjustments that are performed manually without today’s powerful financial consolidation tools in order to check the vital signs of the parent company.  There are plenty of reasons why finance teams are shopping for a tool that makes the consolidations process easier.


Consolidations for Dynamics NAV

 

Your accountant(s) could be looking for something that automates and accelerates financial consolidations for different reasons.  Some are hoping to get away from the older software, such as Hyperion or Cognos that are a little complex for business end users, which necessitates the involvement of the IT department to manage and maintain the product.  Others might be more than eager to retire the mature consolidation solutions that are a little too basic for today’s business standards for aggregation, like FRx or Enterprise Reporting.

Recently, we spoke with a CFO who uses Microsoft Dynamics NAV for a global parent company and the several subsidiaries.  Her responsibilities include dealing with country-specific standards and currency conversions (one of the most common being International Financial Reporting Standards to Generally Accepted Accounting Principles adjustments, also known as IFRS to GAAP).  Nowadays, there are more flexible tools that perform consolidations with the option to drill down beyond the General Ledger, and are positioned within a comprehensive Business Intelligence (BI) suite, fully integrated with other functionalities, such as ad-hoc reporting, budgeting, forecasting, modeling, dashboards, and data warehousing tools.  This article is going to perform some drill down of its own – to better understand the facets of financial consolidations for your Dynamics NAV experience, with an emphasis on what you should be shopping for in a tool for your specific team’s goals.

To continue learning more about your options for financial consolidation solutions, read the rest of this article here.

by Solver, Inc.

 

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