Consolidated account balances example
The application consolidates balances using only the total balances (based on the balance type selected in the Consolidate Clients screen) for each subsidiary client. If you choose to consolidate by account grouping or tax code, you can combine multiple account balances to create the master client balance.
The unadjusted balance in the consolidated master is comprised of the consolidated balance from all of the subsidiaries. This balance is stored in the Enter Transactions screen as an activity journal entry. An activity entry is a regular journal entry that is used to support balances that aren't directly created from existing general ledger transactions such as checks, deposits, transfers, or regular journal entries.
The following examples demonstrate how the application calculates balances when consolidating 2 subsidiary clients, using the following selections in the Consolidate Clients screen:
- Consolidate accounts by: Account grouping
- Consolidate balances by: Report
Example 1: Subsidiary clients don't have existing beginning balances
If 1 or more of the subsidiary clients don't have an existing beginning balance, the application calculates the balances for a consolidated account by summing the balance of all accounts assigned to the selected account grouping for each subsidiary. For example, the balance for account 1-CA ($35,000) is the sub of the balances for accounts 100 ($10,000) and 105 ($25,000).
Subsidiary client name | Account number | Account grouping code | Report balance | Consolidated account number (Mask is X-XX) | Consolidated balance |
|---|---|---|---|---|---|
Subsidiary A | 100 | CA | 10,000 | 1-CA | 35,000 |
Subsidiary A | 105 | CA | 25,000 | ||
Subsidiary A | 200 | CL | -15,000 | 1-CL | -20,000 |
Subsidiary A | 250 | CL | -5,000 | ||
Subsidiary A | 300 | EQ | -15,000 | 1-EQ | -15,000 |
Subsidiary A total | 0 | 0 | |||
Subsidiary B | 100 | CA | 15,000 | 2-CA | 30,000 |
Subsidiary B | 101 | CA | 10,000 | ||
Subsidiary B | 110 | CA | 5,000 | ||
Subsidiary B | 200 | CL | -50,000 | 2-CL | -50,000 |
Subsidiary B | 300 | EQ | 10,000 | 2-EQ | 20,000 |
Subsidiary B | 310 | EQ | 10,000 | ||
Subsidiary B total | 0 | 0 |
Example 2: Subsidiary clients have existing beginning balances
If the subsidiary client have an existing beginning balance, the program calculates the consolidated balances as follows.
- The consolidated beginning balance is the sum of the beginning balance of all accounts assigned to the selected account grouping for each subsidiary. For example, the beginning balance for account 1-CA ($11,000) is the sub of the beginning balances for accounts 100 ($5,000) and 105 ($6,000).
- The consolidated period balance is the sum of all report balances for the selected period for all accounts assigned to code CA. For example, the current period balance for account 1-CA ($35,000) is the sum of the current period report balances for accounts 100 ($10,000) and 105 ($15,000).
Subsidiary client name | Account number | Account grouping code | Beginning balance | Current period report balance | Consolidated account number (Mask is X-XX) | Consolidated beginning balance | Consolidated current period balance |
|---|---|---|---|---|---|---|---|
Sub A | 100 | CA | 5,000 | 10,000 | 1-CA | 11,000 | 35,000 |
Sub A | 105 | CA | 6,000 | 25,000 | |||
Sub A | 200 | CL | 0 | -15,000 | 1-CL | 4,000 | -20,000 |
Sub A | 250 | CL | 4,000 | -5,000 | |||
Sub A | 300 | EQ | -15,000 | -15,000 | 1-EQ | -15,000 | -15,000 |
Sub A total | 0 | 0 | 0 | ||||
Sub B | 100 | CA | 0 | 15,000 | 2-CA | 20,000 | 30,000 |
Sub B | 101 | CA | 5,000 | 10,000 | |||
Sub B | 110 | CA | 15,000 | 5,000 | |||
Sub B | 200 | CL | -37,000 | -50,000 | 2-CL | -37,000 | -50,000 |
Sub B | 300 | EQ | 2,000 | 10,000 | 2-EQ | 17,000 | 20,000 |
Sub B | 310 | EQ | 15,000 | 10,000 | |||
Sub B total | 0 | 0 | 0 |
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