ERPNext Foundation ERPNext Cloud User Manual Blog Discuss Frappé* Donate

Consolidation of Financial Statements


#1

I’m starting this app with my initial idea.

Consolidated Financial Statement are for a Parent Company with subsidiary and associate relationships.

there are adjustments to be made for intra-group, depreciation, financial expense, etc.

Currently the reports are available for individual company.

I’ve created a Doctype for Consolidation - it establishes Parent, Subsidiary, Associate relationships and percent stake

I’ve copied 3 Basic Reports - Consolidated Balance Sheet, Consolidated Cash Flow, Consolidated Profit and Loss Statement. The Filter here is Consolidation instead of Company.

Establish Relation of Parent/Associate/Subsidiary/Percent in Consolidation Doctype

Consolidated Financial Statements in Reports

Consolidation as filter in Reports instead of Company

code on develop branch : https://github.com/revant/consolidation

Inviting community developers to help me out. Is my thinking and approach right?

Any developer interested in paid development / freelancing please PM.


Erpnext for agriculture
Consolidate Financial Reports of Multiple Companies
Consolidated FS by Currency
How we can manage branches in erpnext?
Merge two companies
#2

#3

Add this as a part of the standard erpnext app (since multi-company is already a feature) and send a PR


#4

Wow this great! hope this will be integrated in the erpnext standard


#5

If this becomes part of ERPNext then instead of a separate DocType for Consolidation, a child table can be added to Company?

Instead of making new reports with Consolidation filter, same Reports with company filter can be used? may be a checkbox for consolidated report for selected company.

No progress on data yet. Columns are same as other reports.

I’m reading about Consolidating Financial Statement

http://www.ifrsbox.com/consolidation-example/ has an explaining xls file and a video.

get_data is getting data for selected company, which can be used for list of companies.
Any idea how to combine asset/liability/equity/income/expense for list of companies into one?


[Roadmap] Path to v9
#6

@revant_one Any update on this report?


#7

Last commit on 14 Feb.

No update. :frowning:


#8

@revant_one I think this is an awesome addition to ERPNext. I have a couple of ideas.

Consider adding a Doctype that portrays “stock structure” of sorts.
Let’s say that Sister company has issued 1010 shares of stock, divided like this
333 Type A (common stock, voting rights: yes)
333 Type B (common stock, voting rights: yes)
334 Type C (common stock, voting rights: yes)
10 Type D (Preferred stock, voting rights: no)

Mother company (in ERPNext) owns 333 of share type A: “Sister Company Common stock type A”

The idea is to define for each company added to ERPNext, the type of stock issued, amount of shared of each type, and whether voting rights are given. The total amount of shares issued, being a sum of the three different types of stock mentioned above. You then set a Journal Entry that is linked to the purchase or booking of the 333 Type A stock for Sister Company. This automatically should update the “stake” to 33%. Now, if you book another journal entry of 333 shares of Type B stock, the stake should update automatically to 66%, which should also automatically update company to a “daughter” company.

There should also be a clear specific definition of which percentage stake makes sister or daughter company, a setting per country.

Clearly, the consolidation of statements should reflect the rules depending if it is an daughter or sister company.

Perhaps in the near future (2 months) I might be able to sponsor this feature…


#9

@Rajiv @gvrvnk


#10

@revant_one The work you are doing is great.I am a CA and not a developer and willing to contribute my accounting knowledge in any way you want .
This work if finished will make erpnext greater than some very costly ERPs
Fred


#11
  • We can start with small pull request. Company Relationships
  • Add Child Table on Company instead of Separate Doctype.
    • Parent is Company and Child Table entries are % holdings in companies.
    • Basic Fields : Company (link) and Percentage.
    • Type of Stock, Voting Rights, any other things, if relevant in reporting (future)
  • Identify Validation / UI on Child Table, e.g. parent cannot be in Child Table.

@Tropicalrambler can you start a github issue with checkboxes and detail specification, validations for handling relations, percentages, fields required, Child Table vs Separate Doctype?

@Fred1 we will discuss it on the issue / pull
Post the issue here as well.


#12

I will start the Github issue right away. Thanks!


#13

@Fred1, @revant_one it seems that this Consolidation methodology is in full accordance with IFRS standards.

I just reviewed the link above and it all checks out! Let us work on this. I have submitted the GitHub issue.
Github issue #7025


#14

#15

@revant_one @tropicalrambler i hope this great work will not be limited to statement of financial position.Other reports like Statement of Comprehensive Income ,Statement of Cashflow, and Change in Equity should be considered for the project to be holistic. IFRS is a GAAP many nations have adopted and many more are joining.Nations that has not joined this GAAP can still modify the app revant is developing to meet their reporting need.


#16

No! by all means not limited to balance sheet only! Will add these:

  • Income statement

  • Cash Flow statement

  • Change in Equity

At some point I am considering the addition of metrics similar to Economic Value Added® (aka Economic profit or similar)


#17

@Tropicalrambler That will be great.


#18

How do I access consolidated statements in v7?


#19

Not existing yet, under development!

Please follow this issue on GitHub fo stay tuned:


#20

any update on this issue please?