In the 2023 Wave 2 release of Dynamics 365 Business Central, Microsoft introduced new functionality to allow you to create consolidated financial statements across multiple environments. This feature becomes particularly useful when dealing with companies in different countries or operating in diverse environments. Such scenarios often arise when acquiring a company already using Business Central but in a distinct environment.
Key Functionalities
This functionality enables the creation of consolidated financial statements across various environments and different Azure regions. We will delve into the setup of business units, explore the chart of accounts used, understand the consolidation process, and perform some straightforward yet insightful reporting.
Organizational Structure
The organizational structure for this demonstration involves a consolidating company and three subsidiary organizations. These subsidiaries are spread across two separate environments: Cronus and AM Distribution in one environment, and Cronus Unlimited in another.
Access and Setup
Upon logging into the consolidation company, we examine the involved business units. AM Distribution and Cronus in one environment are seamlessly consolidated with the consolidating company in the same environment. The third company, located in a different environment, is also consolidated. The feature allows connections not only to companies in the same environment (using the database option) but also to organizations in other environments through the API endpoint.
API Endpoint Configuration
To configure the API endpoint, one needs to copy the current environment from the consolidation setup and paste it into the business unit of the other environment. This establishes the connection necessary for the consolidation process.
Chart of Accounts Adaptation
The chart of accounts might differ between environments. For instance, the company in the second environment may have a more European-oriented chart of accounts. However, accommodating these variations is straightforward. By specifying the consolidation company’s account number for each relevant account, the system aligns the information seamlessly.
Consolidation Routine
Once all configurations are in place, running the consolidation routine is a simple process. In case access needs to be granted, a window prompts the user to do so. After the consolidation process completes, basic reporting becomes available.
Trial Balance and Financial Reports
Basic reporting includes running the trial balance, a standard report in Business Central that provides a comprehensive view of information from different companies. Additionally, financial reports offer a consolidated view of data from multiple entities, enabling detailed analysis through drill-down capabilities.
Conclusion
This demonstration showcases the power of Dynamics 365 Business Central in facilitating the consolidation of financial statements across diverse environments. Whether dealing with subsidiaries in different countries or distinct Azure regions, this feature streamlines the process, offering valuable insights for strategic decision-making.
