syscoon legal consolidation

The ODOO-standard-app for consolidation "only" acts as manaement consolidation. Therefore you can aggregate the financials of different companies, translate them into group-currency and - that's all.

In reality, you have currency tranlation differences due to conversion in group-currency. Usually they are shown in other comprehensive income. In standard-odoo this position is not even calculated (therefore balance sheet will never match asset  and liability side).
Also there is no "elimination" of IC-transactions but ODOO-standard just "does not show IC-postings". as a consequence, also currencydiffrences due to consolidation are not shown. To only "leave away" certain IC-postings is not representing common prectice, at least not in Germany, where autitors expect to have a very detailed IC-reconciliation and a very transparent overview of IC-issues, followed by (automated) elimination postings for income/expense and receivables/liabilities. i.d.R.

The new syscoon-app "legal consolidation" closes those gaps. Is is not an "add-on" for the existing-ODOO-standard-consolidation-app, but a new stand alone development. The functions are decribed below:

Estimated release: beginning of Q3 2022.
For third quarter we also plan several extensions, e.g. a "mulit-hierachy-consolidation and a fully intergrated indirect cashflow. 

Integration with ODOO

The consolidation-app is directly connected to the Standard-Finance-app. Similar to the Finance basis model "Journal Items", in consolidation we have the "Group Journal Items" as basic-model. Via an import-function the journal items are aggregated (on a monthly basis) and modified into the group journal items.  
A manual upload of finance data from companies not in ODOO is also possible via the ODOO-standard Excel-Upload.

Group Chart of Accounts

When having different companies in ODOO you are more or less forced to use country-individual chart of accounts. To implement a groupwide consistent chart of account is nearly impossible in ODOO and we do not recommend it.

To enable the group accountant to have one group chart of accounts, we added a new field inside the local accounts called "Group Account". All local accounts can be matched to a global existing group chart of accounts which is maintained inside the consolidation app. It is a pretty simple table, only with some additional information like "group account type" (important for currency conversion) or "group account tags" for building reports.  

When importing from the legal entities into the consolidation app, local accounts get converted into the group accounts. You can also easily analyze if an group account is missing.

Currency Translation

- Balance Sheet accounts (w/o equity accounts) on closing rate
- equity accounts with historic rate
- p&l accounts with  monthly average (option for accumulated average follows in a later version)

In the backgroud there is a calculation of all the currency differences which are posted on separate currency tranlation accounts (OCI). In contrast with the ODOO-consolidation, this leads to a "balanced" Balance Sheet (assets = equity + liabilities). Also there is a parallel calculation of all accounts with average rates to show the indirect cashlfow (relevant for later extension/version).

IC-Reconciliation and Elimination

IC-Reconciliation (reconciliation of receivables/liabilities and expesnes/earinings within the group companies) is one of the essential functions of legal consolidation. In our first version there is a centralized IC-reconciliation-model where you can see all partner combinations per account and grouped by account types. Small differences are recognized as currency-tranlation- expenses(earings automatically.

If you are fine with reconciliation, you can start the automated elimination and create consolidation-postings. 

Group Journals

In the standard configuration there is the "raw-data" journal (where all data from Finance-app is shown) as well as three additional valuation levels (in Germany called HB1 to HB3). Here you can do revaluations or adjust values on certain group conventions. Those Journals still represent the "local" view on each entity and therefore you can analyse the data in local or group currency.

For the consolidation there are some more predefined journals: "expenses/earnings", "receivables/liabilities", "interim profit", "equity", "deferred taxes" and "other". Only the first two consolidation-steps are done automatically, for all the rest you need to do manual group journal entries. 

Reporting

Similar to the Finance app you can analyse a lot using the basic table "group journal items". Filtering, grouping, pivoting etc.

Next to a Consolidation Monitor and several configuration tables, there is the "Notestool" and the "Consotool". The Notestool is similar to a trial balance (account in the rows) which shows all legal entities in the columns together with the consolidation steps and the group figures. The report can be analysed in local or group currency.
The Consotool is splitted into Balance Sheet and p&l and is build up with hierachies to show the official annual reports.
In later versions we plan to have more reports, e.g. registers (group assets, group provisions, group loans, group equity), group total income and indirect cashflow etc.).