Solutions on the basis of Microsoft Dynamics AX: Consolidation of Reporting in Holding Companies and Companies with Standalone Subdivisions
The Special Ledgers solution developed by FBK experts on the basis of accumulated experience makes it possible to collect and process information from standalone subdivisions (affiliated structures) for the preparation and consolidation of the financial statements (RAS, IFRS), tax, statistical and corporate reporting in holding companies, groups of companies or companies with standalone divisions, irrespective of the source accounting systems of the subdivisions.
The core of the Special Ledgers module is the hierarchical model of indicators grouped in ledgers based on specific criteria. The ledgers are presented in the form of two-dimensional tables of arbitrary dimensionality. The set of indicators, structure and forms of ledgers, and also the rules for their completion and calculation are configured proceeding from the requirements of the Client’s enterprise and applicable requirements of legislation.
The set of ledgers allocated to a specific reporting period and subdivision forms the ledger journal. All the transactions related to the processing of data in ledgers are entered in the ledger journal. The module also has an option for the presentation of ledgers in a tree-like structure by periods and subdivisions for visual control over the submission of information.
The operating principle of the module is to collect and calculate the indicators, which form the cells of ledgers, and to generate different types of reporting in Microsoft Excel format. The Special Ledgers module supports different ways of collecting information. The indicators may be obtained either through the direct entry of data into a cell, or through the extraction of the necessary information from the Microsoft Dynamics AX General Ledger module, or a calculation of the indicator based on the indicators of other cells, or the import of data from external applications.
The hierarchy for the construction of the scorecard is presented in the system not only for demonstrative purposes; it also links the ledgers. For example, a change in any data in the ledger containing indicators from the lower hierarchy level results in the need to recalculate the dependent ledgers containing indicators from higher hierarchy levels. In this way the consistency of the information presented in different ledgers is attained and its reliability is increased.
The module makes it possible to keep consolidated accounting at a company, which has dedicated subdivisions. However, if accounting is performed in the Microsoft Dynamics AX system at branches and also at the parent company, the module may receive the necessary information directly from the General Ledger (GL) module. In order to account for information from branches, where other accounting systems are used, the module provides an opportunity to upload data in XML format. The use of ledger templates offers an alternative way of obtaining information from standalone subdivisions. Templates represent a unified set of Microsoft Excel format files for all the subdivisions that the module generates automatically for each subdivision separately and for each reporting period in accordance with the technical model of the ledgers. Templates are transferred to branches and after completion are imported back into the system.
A convenient tool for the analysis of data in the Special Ledgers module is the drill-down mechanism, which makes it possible when selecting any cell to browse the indicators that formed its value. For example, in the case of cells completed with data from the GL, it is possible to generate a list of GL postings serving as the basis for the computation of the cell’s value, and the user may for computational cells browse the ledgers, whose indicators form the cells of the current ledger.
To ensure the safety and reliability of the data, the system has a mechanism for demarcating access rights at the level of the ledgers, whereby a user may be designated amendment, reconciliation and approval rights for individual ledgers. The mechanisms for the reconciliation and approval of the ledgers are stipulated to ensure the higher quality of data in the module.
The reconciliation mechanism represents a procedure that enables the responsible users to check that the cells were correctly completed during the manual entry of the ledger.
Approval of the ledgers makes it possible to prevent uncontrolled amendments to the data. Prior to the approval, if the ledger has manual entry cells, it should be reconciled and calculated. After approval the ledger cannot be accessed for the introduction of amendments (including data import) unless the approval is lifted.
From a technical perspective the ledger model represents an XML file format, describing the structure of the ledgers and the rules for completing and calculating them. In the technical ledger model its structure is described for each ledger (the lines, columns and cells comprising the ledger) and the rules for forming the values of the indicators that are stored in its cells. Coordinates are determined for each cell of the ledger – the line and column where they intersect. The lines and columns of the ledgers may be combined into groups. At the same time, the module provides an opportunity to create dynamic lists of the lines, where the number of the lines was not known in advance.
The description of the structure and rules for constructing the technical ledger model contains the XSD file format, in accordance with which the technical ledger model should be developed within the framework of the specific structure of elements.
The development of the technical model for the Special Ledgers module may be performed in text editor or with the help of specialised software (for example, through Microsoft XML Notepad).
If the enterprise needs to make the transition to a new technical model of the ledgers, but at the same time has to retain the existing ledgers, the module stipulates a mechanism for archiving ledgers, which makes it possible in the event of the transition to the new version of the technical model to retain the current ledgers through their copying in the archive.
This solution will provide a company with the fullest and most reliable disclosure of information by the required deadlines and without the use of additional resources!
For more information on our IT-consulting services and services in implementation of information systems please contact:
Valeria Polyakova, FBK Consulting Partner
You are also welcome to leave your inquiry online
Tel.: +7 495 737-53-53
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