Advanced Ownership Consolidation workflow

Advanced Ownership Consolidation presents a new way to consolidate your financial information with a hierarchical structure of entities.

An ownership structure is a container that defines relationships between parent and subsidiary entities, along with partial ownership of subsidiary entities. With Advanced Ownership Consolidation, you can manage ownership by period for parent and subsidiary entities, including ownership percent changes for each period.

You define the details for an ownership structure, add consolidation periods, and then define additional rules at the book level. These rules can include book names for each entity to be consolidated, elimination accounts, accounts to override, and so on. You can drill down to edit the consolidation book associated with a given entity in an ownership structure.

Use cases

Suppose that you have a larger Sage Intacct company with many entities. You can get a better view of what's happening in your company with the hierarchical view provided by Advanced Ownership Consolidation. You can also manage changes by period, enabling greater flexibility in consolidating financial data.

If you purchase or sell an entity during a specific period, for example, you can edit your ownership structure to reflect this change. For example, a new entity purchased in February 2020 could be included in the relevant ownership structure, with consolidations including the new entity as of the period of February 2020.

Similarly, you can adjust the proportional percentage ownership of any given entity in its ownership structure. You can change the percentage from one period to another to reflect changes in your company. For example, suppose that your new entity owns 20% of a subsidiary entity as of February 2020. You can document that change in the February 2020 period for that ownership structure.

Consolidation methods

Advanced Ownership Consolidation supports consolidated reporting for companies with complex organizational structures by using the Full consolidation, Consolidation, Equity, and Proportional methods to produce accurate consolidated reports.

Learn more about supported consolidation methods in Advanced Ownership Consolidation.

Main steps of Advanced Ownership Consolidation

The main steps for consolidating an ownership structure are as follows:

1. Add an ownership structure. Activate the new structure. Optionally, enable inter-entity auto-elimination and Enable the affiliate entity dimension in a Consolidation book or ownership structure.
2. Add a period to an ownership structure. Select the following:
   1. Reporting period effective start date.
   2. Parent entities and subsidiaries.
   3. Proportionally applied percent ownership for each entity.
   4. Consolidation method for each subsidiary entity.
3. Define consolidation rules for a period. For each parent entity, define consolidation rules for each parent entity.
4. Duplicate an ownership structure period. Rather than create a new period, you can duplicate and edit an existing period.
5. Review an ownership structure. Review the map or tree view of an ownership structure.
6. Consolidate an ownership structure. Add a request to the queue to consolidate an ownership structure.

After consolidating, you can run trial balance reports, General Ledger activity reports, and financial reports.