Instruction: Fill in the blanks to test your knowledge of this section.
Lab 9.1 − Solution: Set up Business Units
Scenario
CRONUS International Corporation owns 100% interest in CRONUS International CONSOL and just acquired 50% in another company as a subsidiary, called CRONUS Subsidiary. January 2007 will be reported with consolidated financial statements.
Phyllis, the accounting manager, set up the chart of accounts in both companies and asked you to help with set up by entering the following business units:
• CRONUS Subsidiary – Code: SUB
– 50% owned by CRONUS Consolidated Company – Same fiscal year as the parent company
• CRONUS International CONSOL
• Code: INTC
• 100% owned by CRONUS Consolidated Company
• Same fiscal year as the parent company Both subsidiaries:
• Have the same fiscal year and currency as the parent company.
• Are within the same database using Microsoft Dynamics NAV 5.0.
• Use account 3120 as the residual account.
HINT: Since the same currency is used, exchange rate accounts are not required.
Step by Step
1. On the File menu, click Company > Open.
2. Select the CRONUS Consolidated Company and click OK.
3. On the Navigation Pane, click Financial Management > General Ledger > Periodic Activities > Consolidation > Business Units.
4. In the Code field, enter SUB.
5. In the Name field, enter CRONUS Subsidiary.
6. In the Company Name field, click the AssistButton and select CRONUS Subsidiary.
7. Click OK.
8. In the Consolidation % field, enter 50.
9. Click the G/L Accounts tab.
10. In the Residual Account field, enter 3120.
11. Click the General tab.
12. Press F3.
13. In the Code field, enter INTC.
14. In the Name field, enter CRONUS International CONSOL.
15. In the Company Name field, click the AssistButton and select CRONUS International CONSOL.
16. Click OK.
17. Click the G/L Accounts tab.
18. In the Residual Account field, enter 3120.
19. Press TAB or ENTER.
20. Close the Business Unit Card window.
Lab 9.2 − Solution: Create a Consolidation Export File
Scenario
CRONUS Subsidiary is only 50% owned by the CRONUS Consolidated Company, the other 50% is owned by a separate company. Phyllis, the
accounting manager, is working at the CRONUS Subsidiary company location with their finance team and needs an export file to send to the parent company for their January 2007 consolidation.
Create an .xml export file based on the following criteria:
• Name the file CRONUS Subsidiary_Jan07 and save to your desktop.
• The other parent company uses the same currency but does not use dimensions.
Step by Step
1. On the File menu, click Company > Open.
2. Select the CRONUS Subsidiary company and click OK.
3. Click OK to the message regarding the demonstration data.
4. On the Navigation Pane, click Financial Management > General Ledger > Periodic Activities > Consolidation > Export
Consolidation.
5. In the File Name field, click the AssistButton.
6. In the Save in field, click the AssistButton and select Desktop.
7. In the File Name field, enter CRONUS Subsidiary_Jan07.
8. Click Save.
9. In the Starting Date field, enter 01/01/07.
10. In the Ending Date field, enter 01/31/07.
11. Click OK.
Lab 9.3 − Solution: Test the Consolidation Data
Scenario
In Lab 10.1 you set up the business units for the subsidiary companies. You now need to test each business unit to verify the set up.
Test each business unit separately for January 2007, and preview each report on the screen. Since dimensions and currency are the same in all companies, it is not necessary to specify either in this test.
The test report for CRONUS International CONSOL shows that there is an account missing consolidation information and that there are two accounts not set up in the CRONUS Consolidated Company. Make note of this information; it is corrected in the Lab 10.4.
Step by Step
1. On the File menu, click Company > Open.
2. Select the CRONUS Consolidated Company and click OK.
3. On the Navigation Pane, click Financial Management > General Ledger > Periodic Activities > Consolidation > Business Units.
4. Locate and select CRONUS International CONSOL company.
5. Click Functions > Test Database.
6. In the Filter field on the Code line, click the AssistButton and select INTC.
7. Click OK.
8. Click the Options tab.
9. In the Starting Date field, enter 01/01/07.
10. In the Ending Date field, enter 01/31/07.
11. Click Preview to review the report on the screen.
12. Make note of the following errors:
• Account 1240 is missing consolidation accounts.
• Accounts 2211 and 2212 do not exist in the consolidated company.
1. Close the Print Preview window.
2. Locate and select the CRONUS Subsidiary company.
3. Click Functions > Test Database.
6. Click the Options tab.
7. In the Starting Date field, enter 01/01/07.
8. In the Ending Date field, enter 01/31/07.
9. Click Preview to review the report on the screen.
10. Note that there are no errors on the report.
11. Close the Print Preview window.
Lab 9.4 − Solution: Correct the Consolidation Data
Scenario
In Lab 10.3 you tested the data for both subsidiary companies and found the following errors in the CRONUS International CONSOL company:
• Account 1240 is missing consolidation accounts.
• WIP/Job Sales accounts 2211 and 2212 do not exist in the consolidated company.
You contact Phyllis about the errors and are instructed to:
• Assign consolidation debit and credit accounts 1240 to account 1240.
Verify that the consolidation method is set to Closing Rate.
• Assign WIP/Job sales accounts to the WIP Sales account used in the consolidated company. Verify that the consolidation method is set to Closing Rate.
After correcting these accounts, test the CRONUS International CONSOL business unit for January 2007 again.
HINT: Locate the WIP Sales account number in the CRONUS Consolidated Company using the Find function on the Toolbar.
Step by Step
1. On the File menu, click Company > Open.
2. Select the CRONUS Consolidated Company and click OK.
3. On the Navigation Pane, click Financial Management > General Ledger > Chart of Accounts.
4. Click the Name field and then click the Find icon on the Toolbar.
5. In the Find What field, enter WIP Sales.
6. Click Find Next, if the Find function is not set to Find As You Type.
7. Note that the WIP Sales account No. is 2210.
8. Close the Name - Find and Chart of Accounts windows.
9. On the File menu, click Company > Open.
10. Select the CRONUS International CONSOL company and click OK.
11. Click OK to the demonstration data message.
15. Click the Consolidation tab.
16. In the Consol. Debit Acc. field, enter 1240.
17. In the Consol. Credit Acc. field, enter 1240.
18. Verify that the Consol. Translation Method is set to Closing Rate.
19. Close the G/L Account Card window.
20. Locate and select account 2211.
21. Click Account > Card.
22. Click the Consolidation tab.
23. In the Consol. Debit Acc. field, enter 2210.
24. In the Consol. Credit Acc. field, enter 2210.
25. Verify that the Consol. Translation Method is set to Closing Rate.
26. Press PAGE DOWN to go to account 2212.
27. In the Consol. Debit Acc. field, enter 2210.
28. In the Consol. Credit Acc. field, enter 2210.
29. Verify that the Consol. Translation Method is set to Closing Rate.
30. Close the G/L Account Card and Chart of Accounts windows.
31. On the File menu, click Company > Open.
32. Select the CRONUS Consolidated Company and click OK.
33. On the Navigation Pane, click Financial Management > General Ledger > Periodic Activities > Consolidation > Business Units.
34. Locate and select CRONUS International CONSOL company.
35. Click Functions > Test Database.
36. In the Filter field on the Code line, click the AssistButton and select INTC.
37. Click OK.
38. Click the Options tab.
39. In the Starting Date field, enter 01/01/07.
40. In the Ending Date field, enter 01/31/07.
41. Click Preview to review the report on the screen.
42. Verify that there are no other errors and the close the Print Preview and Business Units windows.
Lab 9.5 − Solution: Consolidate the Subsidiaries
Scenario
January 2007 processing is complete and consolidated financial statements are ready to be run. Phyllis, the accounting manager, has given you the responsibility of managing consolidations because of your involvement with the set up.
Consolidate the business units using the following criteria:
• Import each business unit individually.
• Use a document number that represents the business unit and the period (Jan07) for each consolidation.
• Accept any messages when running the batch jobs.
After the consolidation is complete, review the registers.
Step by Step
1. On the File menu, click Company > Open.
2. Select the CRONUS Consolidated Company and click OK.
3. On the Navigation Pane, click Financial Management > General Ledger > Periodic Activities > Consolidation > Business Units.
4. Locate and select CRONUS International CONSOL business unit.
5. Click Functions > Import Database.
6. In the Filter field on the Code line, click the AssistButton and select INTC.
7. Click OK.
8. Click the Options tab.
9. In the Starting Date field, enter 01/01/07.
10. In the Ending Date field, enter 01/31/07.
11. In the Document No. field, enter INTC_Jan07.
12. Click OK.
13. Click Yes to consolidate in the specified periods.
14. Press PAGE DOWN to go to the CRONUS Subsidiary business unit.
15. Click Functions > Import Database.
16. In the Filter field on the Code line, click the AssistButton and select SUB.
21. In the Document No. field, enter SUB_Jan07.
22. Click OK.
23. Click Yes to consolidate in the specified periods.
24. Close the Business Unit Card window.
25. In the General Ledger folder, click History > Registers.
26. For the first consolidation register, click Register > General Ledger.
27. Review the entries.
28. Close the General Ledger Entries window.
29. For the second consolidation register, click Register > General Ledger.
30. Review the entries.
31. Close the General Ledger Entries and G/L Registers window.
Lab 9.6 − Solution: Print the Consolidated Trial Balance
Scenario
The consolidation process is complete:
• Data from business units are imported.
• Consolidation eliminations are posted.
It is now time to run the January 2007 trial balance for the CRONUS Consolidated Company using the following criteria:
• Select the appropriate report for this consolidation.
• Do not filter on accounts, global dimensions, or business units.
• Show amounts as Net Change.
Preview the report, it is not necessary to print.
Step by Step
1. On the File menu, click Company > Open.
2. Select the CRONUS Consolidated Company and click OK.
3. On the Navigation Pane, click Financial Management > General Ledger > Periodic Activities > Consolidation > Business Units.
4. With either business unit selected, click Reports > Trial Balance (4).
5. Ensure there are no filters set on the G/L Account tab 6. Click the Options tab.
7. In the Starting Date field, enter 01/01/07.
8. In the Ending Date field, enter 01/31/07.
9. Ensure that Net Change is selected.
10. Click Preview to review the report.
11. Close the Print Preview and Business Unit Card windows.