Recording consolidating adjustment journal entries
How to use Reporting Ledgers for Consolidation Accounting in Dynamics GP and Management Reporter.When a business is operated as a parent company with subsidiaries, separate accounting records are kept for each entity.: In a locked down file, only federal tax adjustments can be posted or modified.
Thanks to accounting software, the closing entries are quite effortless.[The following paragraph was effective for audits of financial statements for periods beginning on or after December 15, 2002. Return to the current version.] The auditor should use professional judgment in determining the nature, timing, and extent of the testing of journal entries and other adjustments.It was amended, effective for audits of fiscal years beginning on or after December 15, 2010. Reporting ledgers were introduced with the release of Dynamics GP 2010.Reporting Ledgers provide 3 financial ledgers, the general ledger (BASE) and two optional reporting ledgers.The purpose of the White Paper, White Paper in the Consolidation Accounting Series for Dynamics GP, is to provide design concepts for performing Elimination and Adjusting entries using Reporting Ledgers for Consolidation Accounting in Microsoft Dynamics GP and Management Reporter.Managing elimination entries for multiple subsidiaries requires more than just a link to an Excel spreadsheet.The company may have deferred the expense by recording the amount in the asset account .During the accounting period some of those premiums expired (were used up) and need to appear as expense in the current accounting period and the asset balance reduced.Any transaction entered in the Adjusting Journal Entry worksheet appears in the adjustment column in the trial balance documents.Although any type of transaction (e.g., cash disbursements) could technically be recorded here, the preferred method would be to use the Other Entries worksheet for these bookkeeping types of transactions (see Other Journal Entries command for more information).