Today’s financial reporting service is dynamic and competitive, and your supporting software needs to be able to accommodate rapid change and growth. Sage 300 Financial reporting and consolidations gives you the ability make strategic decisions, pilot your business, and improve your profitability with efficiency.
Financial consolidations combine subsidiary transaction data into a singular set of reports for a parent corporation. These statements almost always include Profit & Loss, Balance Sheet and Cash Flow reports, and are made up of subsidiary information, directly demonstrating a parent company’s health. Consolidations can include currency conversion for multiple money types, eliminations for transactions between subsidiaries, and any additional adjustments that need to be done manually without modern tools. There are several reasons to consider today’s consolidation software, but there are a couple of overarching reasons that are driving some CFOs to shop around for a stronger tool to implement.
There are some basic reasons your finance team might be looking for an automated, modern consolidation solution. Some are seeking to change their older tools that are too simple to meet today’s business demands, like manual Excel spreadsheets. Others are hoping to retire their mature applications that are too complicated for business end users to manage. Sage 300 erp in UAE is the best choice for financial department for this purpose.
Companies with less subsidiaries to consolidate, with less complicated or no currency conversions required, and/or without a reason to perform large, simultaneous data queries would be okay to utilize Sage 300’s native roll-up capabilities. You can also use Sage 300 if you aren’t planning on pulling data from other sources into your analyses, producing complex automated eliminations, or additional adjustments beyond what Sage 300 can do. However, BI data stores tend to enhance financial consolidations by pulling GL data from Sage 300, so this option might be advantageous for parent corporations with more complex aggregations.
You should consider what modern consolidation functions you need to tackle your specific consolidation demands.
Intercompany eliminations. Sometimes, one subsidiary might buy or sell goods or services from another subsidiary, resulting in cancelled out line items. As a function, intercompany eliminations remove these transactions from the P&L and balance sheet, instead re-allocating the resources, which can be performed with Sage 300 or a BI data store. Some BI tools even have configurable Excel input forms that you can utilize to manually eliminate or adjust inter-company exchanges in easy ways.
Currency conversion and consolidation adjustments. We’ve discussed currency conversion a little, and it is exactly how it sounds: multiple currencies get converted into a singular money type in the set of statements. Consolidation adjustments enable finance professionals to meet domestic and global accounting standards, update inventory, and/or temporarily fix incomplete subsidiary data, along with other tasks. In other words, these adjustments assist in statutory statement submissions.
Allocations, reconciliations, and modeling organizational changes. Some companies choose to allocate specific expenses or revenues to certain departments, divisions, and/or subsidiaries. Allocations can be done within Sage 300, or there are some data stores in which you can build allocation processes of varying complexities within the cube or data warehouse. If you elect to go the BI data store route, lots of corporations like to have either parent company or subsidiary staff reconcile data to confirm accuracy, which can be done with Sage 300, BI front-end software, or in a BI data store. Finally, some data sources empower you to model acquisitions, divestments, and/or reorganizations by duplicating and changing infinite company trees or hierarchies that you need.
For viewing the impact on your portfolio with this function of sage 300 in Dubai contact our experts.