Integration to Odoo
The consolidation module draws necessary information directly from the Finance database. Similar to the "posting lines" in the Finance app, there is the main table "Group posting lines" in the consolidation module. Data is transferred or updated aggregated to monthly slices via import buttons from the Finance app. Manual upload, e.g. from group companies outside Odoo, is also possible via the standard Odoo import functions.
Group chart of accounts
Odoo always uses local charts of accounts for the individual country packages. It is almost impossible, or at least not recommended, to implement group charts of accounts at individual company level.
In order to still be able to use an uniform chart of accounts for consolidation and group reporting, a new field has been added to the chart of accounts in the Finance app, the "group account". Here, each local account is linked to a group account. The group chart of accounts is in turn entered in the module itself and contains additional information such as: the group account type, which determines the translation method, or group account tags for later reporting.
When importing data from the individual companies, aggregation is performed using the group accounts.
In the first version of the consolidation module there is only one method of translation:
- balance sheet accounts (without equity accounts) at the closing rate
- Equity accounts at the historical exchange rate
- P&L accounts at the monthly average rate (cumulative rate will follow in later versions)
In the background, the currency translation difference is also posted to special exchange rate difference accounts, so that the balance sheet is always zero. Also, for all items in the background, a translation is performed at the monthly average exchange rate, which in turn is relevant for the determination of the indirect cash flow statement (later expansion stage).
IC reconciliation and elimination
IC reconciliation (or reconciliation of receivables/payables and expenses/income between group companies) is an essential part of consolidation. In the first stage of expansion, there is a central IC reconciliation table. Here you can see the corresponding values per partner combination and per account. Any differences are automatically recorded in exchange rate difference accounts affecting the income statement.
If the user is satisfied with the reconciliation, one can directly trigger the actual elimination and thus generate consolidation/elimination entries.
As standard, the raw data level as well as 3 valuation levels (HB1 to HB3) have been integrated as journals in the consolidation module. Thus, one still has the possibility to reclassify or adjust values in local currency but outside of local accounting.
For the consolidation itself the journals “Expenses /income”, “Receivables/Liabilities”, “Interim profit”, “Equity”, “Deferred Taxes” and “Others” are available in the standard. Only the elimination of the levels "Expenses /income”, “Receivables/Liabilities” is automated (manual additional entries are possible).
As in the Finance App, the "Transaction lines" table serves as the base table in the Consolidation module. In principle, everything can be filtered, grouped or pivoted here.
In addition to a consolidation monitor and various master data tables, there is also the so-called "Notestool" and the "Konsotool". The Notestool is similar to a totals and balances list. It shows all group accounts for all companies and all consolidation levels as well as the totals and group values. Currency conversion is also possible (to a limited extent).
The Consotool in turn shows the final balance sheet and P&L structure from an aggregated and hierarchical perspective.