Consolidation and translation
Translate entity results into the group currency, review eliminations and adjustments, and approve a reproducible consolidation.
6 stages · 2 approvals
Roles and responsibilities
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Step 1Readiness
Transaction NumberFrom EntityTo EntityTypeRecharge
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Step 2Create the run
EntityPeriod NamePeriod TypeStart DateQuarter
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Step 3Translate
Journal Entry NumberEntityDateDescription
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Step 4Eliminate
Journal Entry NumberEntityDateDescription
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Step 6Lock
From CurrencyTo CurrencyRate TypeEffective DateAverage
Process steps
Follow the process from start to finish. Select a step to see who acts and what changes.
Readiness
The preparing Controller checks that included entities meet the required close status for their mapped periods. Intercompany balances and timing differences are agreed or have an approved resolution. Closing and average rates exist for required pairs; historical balances have supported rates. Missing-rate and unresolved elimination exceptions remain visible.
Create the run
Controller creates the run for the group reporting period; its linked group journals must use an eligible posting period. The run retains included entities, source periods, close status, ownership and consolidation method. It identifies the rate versions and accounting policies to apply; their suitability is verified for the group's reporting requirements.
Translate
Controller reviews translation of each entity's functional balances into reporting currency. Account rules select reviewed closing and historical rates; income uses actual dated rates or an assessed suitable average. Translated balances retain source amounts and rates. Differences needed to balance the translated result flow to the group's translation adjustment account with supporting workings.
Eliminate
Controller prepares eliminations for matched intercompany activity, investment and equity, and other supported group adjustments. Non-controlling interest follows the reviewed ownership policy. Each entry retains its source and group period. A rate, timing or policy residue requires a documented adjustment rather than an assumed automatic match.
Approval required
Review
A different authorised Controller reviews the Consolidation Worksheet, rate evidence, entity-period mapping, eliminations and adjustment explanations. Errors return to the responsible entity or preparing Controller. Corrected source data supersedes the affected run and requires recalculation; prior versions remain available.
Approval required
Lock
The independent Controller signs off only after required entity hard closes and adjustment approvals are complete. Lock freezes the run and its used-rate versions. The group statements use this approved result. Reopening or replacing it follows the logged correction path and cannot silently overwrite the signed version.
Approvals and controls
2 approvals required in this process
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Review
Controller signs · lock waits
ConsolidationRuns, ConsolidationEntities, EliminationEntries, ApprovalDecisions -
Lock
Controller signs · closes the process
ConsolidationRuns, ApprovalDecisions, ExchangeRates, HistoricalRates - Separate preparation and approvalThe same role may be assigned to several people; the preparing Controller cannot sign off their own consolidation. Delegation preserves that conflict check.
- Map entity periodsDifferent fiscal calendars do not justify posting into a closed entity period. The reporting period and eligible group journal period remain explicit.
- Explain translation differencesThe worksheet retains each source balance, rate type, rate version and reporting amount. Translation adjustment is reviewed against those workings.
- Review elimination adjustmentsMatching in transaction currency does not guarantee equal translated values. Record the reason, accounts, evidence and approval for any adjustment.
- Track source changesA later entity adjustment invalidates the earlier consolidation basis. Recalculated or replacement runs retain their relationship to the previous version.
- Preserve the approved resultStatements and audit workpapers identify the locked run. Later changes create reviewable versions rather than changing historical output in place.
Records and postings
| Stage | Records | Dr | Cr |
|---|---|---|---|
| 1 Readiness | AccountingPeriodsIntercompanyTransactionsIntercompanyBalancesExchangeRatesHistoricalRates | none | none |
| 2 Create the run | ConsolidationRunsConsolidationEntitiesEntitiesAccountingPeriods | none | none |
| 3 Translate | ConsolidationRunsTranslatedBalancesJournalEntries | translation adjustment in the group unit |
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| 4 Eliminate | EliminationEntriesJournalEntries | reviewed eliminations and non-controlling interest in the group posting period |
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| 5 Review | ConsolidationRunsConsolidationEntitiesEliminationEntriesApprovalDecisions | none; corrections follow their approved workflow |
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| 6 Lock | ConsolidationRunsApprovalDecisionsExchangeRatesHistoricalRates | none | none |
Process reports
All reportsIntercompany Reconciliation
Every entity pair and currency for the period with each side's balance, the difference and the agreement status, drillable to the transactions in the period with both entities' booked amounts, so the consolidation cannot start with an unexplained difference.
Budget vs Actual
Per account per cost center, budget, actual, variance and variance percent for period, quarter-to-date and year-to-date, in entity currency or translated at the budget rate for the group view.
Balance Sheet
Assets, liabilities and equity rolled up per entity and consolidated, comparative to prior period and prior year, in functional or reporting currency, with the fixed-asset roll-forward as a supporting schedule.
Income Statement
Revenue, cost of sales, operating expense, other income and expense, tax and net income per entity and consolidated, month, quarter-to-date and year-to-date, with realised and unrealised exchange differences shown on their own lines.
Consolidation Worksheet
Per account, one column per entity in reporting currency from the translated balances, an eliminations column, a non-controlling interest column and the consolidated column, for a locked or calculated run; each elimination drills to the entry and the transaction it removes.
Run by an agent
Agent support
An agent cannot approve a revaluation, authorise payment, confirm an intercompany transaction for the receiving entity or sign off a close. It cannot bypass limits, entity access or separation of duties. Preparation remains distinct from the human approval required to release or post the work. Test those restrictions during implementation and retain the agent identity in the audit trail.
# Example after configuration
$ curl -fsSL https://www.erp.ai/skill.md | paste into your agent
› consolidation and translation · readiness on AccountingPeriods, IntercompanyTransactions, IntercompanyBalances, ExchangeRates, HistoricalRates
✓ The preparing Controller checks that included entities meet the required close status for their mapped periods.
› consolidation and translation · create the run on ConsolidationRuns, ConsolidationEntities, Entities, AccountingPeriods
✓ Controller creates the run for the group reporting period; its linked group journals must use an eligible posting period.
› consolidation and translation · translate on ConsolidationRuns, TranslatedBalances, JournalEntries
✓ Controller reviews translation of each entity's functional balances into reporting currency.
› consolidation and translation · eliminate on EliminationEntries, JournalEntries
✓ Controller prepares eliminations for matched intercompany activity, investment and equity, and other supported group adjustments.
› consolidation and translation · review on ConsolidationRuns, ConsolidationEntities, EliminationEntries, ApprovalDecisions
⏸ approval · waiting for the controller
# 1 more stage after approval: lock
Other processes
5 moreMulti-currency period close
Approve reconciliations, revalue supported balances, review the close and consolidate each entity into the group reporting currency.
6 stages · 3 approvals
Invoice to cash in a foreign currency
Invoice customers in their currency, record cash when it arrives, and reconcile each application with the amount owed and its current carrying value.
6 stages · 2 approvals
Bill to payment
Review supplier bills, approve spending within recorded authority, and track payments, currency differences and rejected-bank attempts through to reconciliation.
6 stages · 2 approvals
Revaluation run
Restate foreign-currency balances with item-level workings, independent approval and a clear basis for later settlement.
6 stages · 1 approval
Intercompany to elimination
Agree intercompany transactions, post each entity in its own period, reconcile balances and review consolidation differences.
6 stages · 3 approvals