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User guide

Consolidated engagements in Engagement Manager

In Engagement Manager, you can create an engagement for a client with a consolidated trial balance. Consolidated engagement structures vary from firm to firm. Some keep workpapers in both the subsidiary and consolidated engagements; others keep workpapers in the consolidated engagements only.
To add an engagement as a consolidated engagement, select Consolidated from the Structure field as you step through the engagement setup.

When to use the consolidation feature

Firms use consolidations for a variety of reasons, such as consolidating for financial statement purposes, consolidating for a tax return, as an alternative to using the trial balance compare feature between separate tax and audit engagements, or as an alternative to the divisional approach.
If you need to present comparative financial statements for the client and you are converting from another accounting application, you should set up the prior year first with eliminating entries, etc. We also recommend that you round the appropriate balances as well before rolling the engagement forward.
When consolidating by account number, if more than one of the entities being consolidated has the same account number but different descriptions, Engagement Manager will use the account description from the 1st engagement listed in the consolidation set-up screen unless a different engagement is identified as the Primary.
  • Customize the trial balance view for consolidated engagements - Setting up the trial balance view for a consolidated engagement is similar to setting up the trial balance view for a divisional or any other engagement.
    However, the consolidated engagement can display each subsidiary, a total of all of the subsidiaries, the eliminating journal entries, and the final balance after the eliminating journal entries.
  • Make journal entries in a consolidated engagement - In Engagement Manager, all adjusting entries must be made at the subsidiary level. In a consolidated engagement, the following types of journal entries are allowed.
    • Eliminating
    • Reclassifying
    • Federal tax
    • State tax
    • Other
    • Other 2
    • Other 3
    • Proposed
  • Balance Definitions - The Balance Definitions on the Trial Balance tab will be different for consolidated engagements.
    You can link a consolidated engagement in Word and Excel to use the Engagement Manager consolidation features. Just as you can arrange views in Engagement Manager to see balance columns for the different subsidiaries, the total balance, the eliminating journal entries, and the final balance, you also have these options when you use the Engagement Link in the Engagement Manager ribbon in Microsoft Word and Excel.

This article applies to:

  • Subject: Engagements
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