Set of Book Movement Type Choices

[former_member546282]

Dear ByD Finance Experts,

I would like to inquire which "Movement Types" shall I choose, while creating a set of books:

Default Movement Types or Movement Types for Consolidation Preparation?

Please be informed, that I need to conduct financial consolidation for several companies with same currency. And I only want one accounting standards. So, I figured out I should only choose one set of book (e.g. IFRS). But now as I see that there is no set of book which is comprehensive in terms of content of movement types (Default Movement Types is different in content from Movement Types for Consolidation Preparation); I like to ask should I keep two set of books at the system; one for consolidation and one for usual reporting?

I would like to keep only a single set of book; but at same time be able to run consolidation. I appreciate your advice.

Thank you & Regards,

Amr Abdelahleem

[HarshalVakil · Accepted solution]

Hello Abdelahleem,

Since you would like to perform financial consolidation for the multiple companies, in my opinion you need to choose the movement type for consolidation preparation.

for the set of books, Since the currency (and you can still have single set of books but different currencies for each assigned companies) and accounting standards are same, its a good idea to keep only one set of books. You can have multiple set of books, with the same accounting standards but that would be just a replica of one another except you are defining different charts of account and account determination groups etc.

However, if due to local reporting (US GAAP / German GAAP etc.), you need local accounting principle, you will need to create local set of books with the local accounting principle.

I hope this will help.

Regards,

Harshal

[former_member546282 · Accepted solution]

Dear Harshal,

I appreciate your response. Thank you very much.

Do you think the single set of book with movement type: "Consolidation Preparation" will be sufficient to cover all the company needs. As you kindly see, the content of movement types vary among the two choices, so I am afraid I will be missing some functionality if I choose "Preparation for Consolidation". But at same time, as you know, I prefer not to have a redundant set of book :

Movement Types Available with the Default Movement Types Profile

In general ledger accounting, the Default Movement Types profile offers you the following movement types:

• 900: Opening Balance
• 910: Addition / Acquisition
• 920: Write-Off / Retirement
• 930: Utilization / Usage
• 940: Transfer
• 950: Exchange Rate Differences – Current Year
• 960: Exchange Rate Differences from Opening Balance
• 980: Deduction of Accrued Interest
• 985: Addition of Accrued Interest
• 990: Other Changes

Movement Types Available in the Movement Types for Preparation for Consolidation Profile

In general ledger accounting, the Movement Types for Preparation for Consolidation profile offers you the following movement types:

• 500: Accruals – Period Start
• 520: Addition for Accruals/Provisions
• 540: Consumption Accruals/Provisions
• 555: Disposals for Accruals/Provisions
• 560: Dissolution for Accruals/Provisions
• 570: Reclassification of Accruals/Provisions
• 580: Deduction of Accrued Interest
• 585: Addition of Accrued Interest
• 600: Equity Capital – Period Start
• 620: Transfer from Net Profit Previous Year
• 630: Dividends Paid
• 640: Capital Increase/Reduction
• 623: Increase in Equity
• 645: Reduction of Equity
• 646: Reclassification of Equity
• 650: Annual Net Profit/Loss
• 660: Transfers for Discontinued Operations in Current Year
• 670: Withdrawal for Discontinued Operations in Current Year
• 690: Other Transactions
• 725: Fixed Asset Acquisition in Group (Man.Correction)
• 745: Fixed Asset Retirement in Group (Man.Correction)
• 780: Manual Adjustments for Fixed Asset Acquisition/Retirement in Group
• 900: Opening Balance

Thanks, again for help!

[HarshalVakil · Accepted solution]

Hello,

We are also using the Movement type for consolidation preparation for the consolidation with the group.

In my opinion, Default moment types are more or less covered with the Consolidation movement type.

Regards,

Harshal