Consolidation reporting combines the financial results of a number of business units to give a picture of the overall position of the organisation as a whole. It is important as it can provide an in-depth insight into both financial and operational results of the business, and identify issues or opportunities that may be missed when reviewing each business unit in isolation. Using software that can import financial data for the whole business to provide the overall summary can be of great benefit to the organisation.


Historically one of the consolidation methods of financial statements was excel, but using just an excel sheet for your consolidation reporting financial cannot facilitate the vast amount of data that a large, multi-unit organisation has. In addition, it is prone to errors, both human and formulaic. Utilising a consolidation reporting software can help consolidate report of multiple units, determine hierarchies and define legal entities. This makes it easier for organisations to have a firm structure to manage various currencies, mergers and acquisitions, and accounting standards.


Why ProForecast financial consolidation?

Since successful businesses use consolidation reports, budgets, financial planning and forecasting so frequently, it is an advantage if all data is accessible and connected so that the process is quicker and more straightforward. Our software is designed to be user-friendly and easy to implement. With the consolidation reporting model, we have created a smarter way for our users to be able to create integrated consolidated forecasts for themselves. We can help your teams get past the complexities of consolidation and free them for more valuable work.


There are many benefits of using our consolidation reporting model, but the overall benefit is that we can reduce the time-consuming process of using a more complex system, with our smart integrated solution the consolidation reporting model is easy to use and manageable.


The unique factors that users of our consolidation model will have access to consolidate an unlimited number of subsidiaries, even where they report in different currencies. In addition, multiple stress tested scenarios can be consolidated in any combination and, using the unique journal system, true consolidation reports are created for the balance sheet, income statement, cash flow, fixed assets, and principal departments.


How to create a consolidation using the ProForecast Consolidation Reports

  1. The Main Navigation (the sidebar) includes a consolidation icon; this brings up the consolidation data entry screen. You are able to name your consolidation and, once saved, the consolidation tile will include icons for editing and deleting the title.
  2. To edit, select the editing tool (the icon that looks like a pen). You will then see the plans screen which is split into two halves, “Forecasts to add” and “Forecasts in the consolidation”.
  3. To add a plan, select a forecast and double click. To remove a plan, select the plan and double click which removes the consolidation.
  4. To make an adjustment simply click “Adjustments Menu” in the consolidation icon. Once in the adjustments screen, select the consolidation, which then brings up the “Add adjustment” data entry. Enter an adjustment name or brief description and then select the calculation type and save the entry which creates an adjustment tile.
  5. To create adjustments, select journals which will bring up the journal screen which includes a plus icon. The drop-down list within the plus icon includes a selection of items that can be adjusted. Use the drop down to select the account heading and then enter the base value, which should reflect the calculation type selected when the “Adjustment tile” was created.
  6. Selecting the step changes icon brings up the “Step-change” screen. Use the drop-down list to select the “Account heading” which requires a step change entry, enter the month number of the change then the change value and any description. (Selecting the plus icon brings up an additional data entry line)
  7. Having added your forecast and created your journal adjustments the actual consolidation is built by selecting the top right-hand corner, “Consolidation” This brings up the calculation data entry screen. Use the drop-down list to select a consolidation and then either configure a new consolidation calculation or bring up a previously calculated model and then simply name the plan.
  8. When selecting “Consolidation”, a list of the forecasts to be merged will be brought up- listed by name. For each of these companies, a list of the forecasts appears in the drop-down list, select the forecast to be consolidated and then the appropriate pre-run scenario for that plan. So for instance, if a plan had a forecast called ‘Original Forecast’ and it had been run with 2 “What if” scenarios, either the original or either of the two “What if” scenarios could be selected.


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