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Consolidation Guide

Overview

Konsolidat consolidates multiple D365 legal entities into a group view with: - Currency translation (local → group reporting currency) - Ownership adjustment (minority interest) - Intercompany elimination

Setting Up Consolidation Groups

Edit dbt_project/seeds/consolidation_groups.csv:

consolidation_group,data_area_id,entity_name,ownership_pct,reporting_currency,consolidation_method
GROUP_CORP,USMF,Contoso US,100.00,USD,full
GROUP_CORP,DEMF,Contoso DE,100.00,USD,full
GROUP_CORP,GBMF,Contoso UK,80.00,USD,full
Field Description
consolidation_group Group identifier
data_area_id D365 legal entity code
ownership_pct Ownership percentage (0-100)
reporting_currency Group reporting currency
consolidation_method full (100% consolidation) or equity

Currency Translation

Translation uses exchange rates from D365 (silver_exchange_rates):

Account Type Rate Used
Balance Sheet Closing rate (latest available for period)
P&L Average rate (simplified: uses period-start rate)
Equity Historical rate (simplified: uses closing rate)

Group amount = Local amount × Exchange rate × Ownership %

Intercompany Elimination

Edit dbt_project/seeds/ic_elimination_rules.csv:

rule_id,rule_name,debit_account,credit_account,debit_entity_pattern,credit_entity_pattern
IC_001,IC Receivable/Payable,1300,2100,*,*
IC_002,IC Revenue/COGS,4000,5000,*,*

The engine: 1. Finds balances in debit_account and credit_account across different entities 2. Creates offsetting entries (debit elimination + credit elimination = 0) 3. Uses the lesser of the two balances (conservative approach)

CTA (Currency Translation Adjustment)

The gold_fx_revaluation model calculates CTA entries to keep the balance sheet balanced after currency translation. CTA is booked to equity.

Viewing Consolidated Reports

In Excel, connect to v_consolidated_report via Cube SQL API. Available dimensions: - Consolidation Group - Legal Entity (for drill-down) - Fiscal Year / Period - Account

Validation

The test assert_ic_elimination_nets_zero.sql verifies that all IC eliminations net to zero (debit + credit eliminations = 0).

Consolidated group total = Sum of entity totals × ownership + IC eliminations + CTA.