There’s a significant number of Microsoft Dynamics AX users who are overseeing financial data for more than one subsidiary under a parent company. Aggregating operational and transactional data from multiple companies, sometimes with more than one currency, can be logistically nightmarish if you are not armed with a powerful, ultra-modern financial reporting and consolidations tool. Data amounts continue to increase in size and relatedly, value, so the importance of a tool to help Dynamics AX users who are charged with combining subsidiary information into a singular financial statement set cannot be ignored. If you are depending on Dynamics AX for parent company accounting, this article is just for you, so you can understand your options for easy to use, dynamic consolidation solutions for you and your team.
First things first – a defining the term. Financial consolidations refer to aggregation of transactional information from subsidiaries into one complete set of financial statements. These reports combine data and reconcile any currency differences, eliminate any transactions between two or more subsidiaries, make sense of differing year ends, and make any additional adjustments, whether manual or with the powerful functionality of today’s BI tools, to clearly understand the overall health of the parent company. There are plenty of reasons that Dynamics AX customers are or will be in the market for a solution that will simplify financial consolidations.
You might be searching an automated consolidation tool for plenty of reasons, but here are two simple ones. You might want to get away from older programs that are simply too simple for today’s business needs, like Microsoft’s Excel, FRx, or Management Reporter. Alternatively, you might be looking to upgrade from older applications that are too technically complex, like Hyperion, or Cognos/TM1, which usually require the involvement of the IT department to manage the software.
Having spoken to several customers, we know that there are a lot of professionals who are relying on Dynamics AX and an independent software vendor product to consolidate data from sometimes several subsidiaries internationally. This task requires that you meet global and country-specific standards regarding accounting, like International Financial Reporting Standards to General Accepted Accounting Principles, also known as IFRS to GAAP, as one example. And this is very doable with a modern consolidations solution. There are also reporting and aggregation tools that allow you to report beyond the General Ledger (GL), and some are even positioned within a complete, fully integrated BI toolbox, with
To continue learning more about your options for modern financial consolidations with Microsoft Dynamics AX, read the rest of this article