So, last video, we started the consolidation process until we created a secondary ledger. Now in this video we are going to discuss about how to define the consolidation process how to define that consolidation actually the consolidation is nothing but when we require the consolidation when whenever the company maintains more than ledges whenever the company maintains more than one ledger at that time they require that consolidation okay already primary ledger is created. analogy we define the different type of transactions with help of the primary ledger and last video we had created secondary ledger for our company also. So at the time of creating the of the secondary ledger compulsory you must ensure to follow the two steps The first step is complete chart of account and second one is the currency. The company chart of account of secondary currency company is not it's not equal to the primary chart of account of our parent company number of segments like for example, in parent companies we already declared for segment, but at the time of creating of the second a company chart of record.

So, minimum we defined to our three but not four, okay maybe we can define five or six or eight or seven according to the requirement but not for me. And also second one is the currency currencies also different for the parent the company currency, our parent company currencies, their INR and as already we declared the secondary company currencies that you yesterday. Okay, so with help of this rule solidi, we constructed a primary ledger of secondary company Okay, now go to define a consultation process in the consultation the first processes go to create a ledger set. Go to creator ledger assets, we request the ledger assets for two Ledger's Okay. Now go to log into the application and select General Ledger responsibility. Select the general ledger responsibility.

Now we're going to application select gender ledger responsibility. First step is go to define their ledger assets. This is a first step in consolidation Got to define the ledger sets for what the ledger is. Only two Ledger's are created compulsory create a ledger set for two Ledger's. This login to the GL Go to files which responsibility select the general ledger module. And first step is go to create a ledger sets the navigation is set up financial ledger sets.

The navigation is set of financial ledger assets. So go to the ledger set name, underscore sub ledger search and short name, underscore sub l set sub l set and description is not mandatory. What is a default set up a coordinate Standard course of accounting structure what is the calendar this calendar and what is the default ledger test ledger the default ledger is just tested subledger it also default ledger is has two sub ledger okay. So go to savage transaction complete to record suppliers and and create a sec as for primary ledger setup okay create the primary ledger set also say After defining the ledger sets now go to define one more setup for consolidation we require one accounting setup that is nothing better translation adjustment account Okay, so before going to do the consolidation process. So it requires one accounting setup must generate assigned translation adjustment account why because before going to do the consolidation first we have to go for the translation actually the company maintains a two Ledger's, the two largest currencies are different the first two current the company currencies, Ayana, second one is a USD Okay, so before going to do the consolidation of secondary ledger transactions into the primary ledger, we have to go for that translation only.

If you want to do the translation we require this translation adjustment account it's a counting options go to accounting Options window setup financial accounting Setup Manager accountant setup Now, query a ledger s ledger so this account is also mandatory for two Ledger's you the query was test ledger. This ledger this click on Update accounting Options button select the test ledger and click on Update accounting Options button to updating the accounting information. Yeah, so this is a legal entity and your primary ledger go to click on Update button. So in the first page there is no eye contact options. Go to click on the next page. In the next page second page go to second page.

In the second page there is a currency translation options. So go to do the translation of what is the default the period rate to type is a corporate and average rate also corporate and select the quarter combination of translation adjustment account. Select the core combination of translation and dismount account Select the code combination of translation adjustment account. company 01 company department leader, Roger department. account is a translation adjustment account already account is created. So go to select the translation adjustment account.

Select the translation adjustment account. Product value set 00. Okay now go to click them Create button. Now the chord combination is created. Select the chord combination and go to clicker select work now the combination is displayed here. Okay, so this is the mandatory setup for the ledges finish it okay we'll get a confirmation ledger this ledger has been updated the same essential secondary ledger also go to a content setup second the secondary ledger test the secondary ledger subledger Click on Update button assign that click on heroes update button assign that translation at this contact on go to the second page.

The period end rate is corporate and heroes average period rate is also corporate and go to select the translation adjustment account. Because the company is you know one company department is 00 department and cancer translation adjustment account click on the Create button select the chord combination and click on select OK. So, that combination is displayed here and go to finish it this is the first step. The second step is now you will get a confirmation. Now the second step is go to creative one go to raise their conversion rate. So, if you want to do the translation compulsory requires the conversion rate right.

So if you want to do the conversion We declare that today's conversion rate or daily rate, setup financials set up currency rates daily and that is a daily rate for today currencies are testing ESD si are not our currency our secondary companies TST Aya Natalia and what is the conversion type corporate and what is the conversion rate suppose I enter 57 to 67 so, that is converted into INR automatically. So, based on this conversion date the currencies converted okay okay Save it close it after that go to creative and no journal entry into the secondary ledger journal and journal enter new journal in secondary legit anomaly we assign the second ledger at responsibility level right now you will get your secondary ledger data secondary ledger currency okay period is March period their discharge date. So this is a consolidation journal can consolidation journal and they will get down the details later details that come to the lines.

So, enter the line information creative and debit account any account you create 01 company 0200 department and account is selected And even icon and selecting this expense account and how much amount because we enter the amount into the dollar because this is now we are in the secondary ledger right the secondary ledger currencies are dollar All right. So and then there are currency in dollars suppose I enter for $50 okay and cash account expense a second data to cash account zero and company 00 department and select that card contest cash Same for $50 on a trade center for 450 dollars after consolidation is completed. Now these 450 dollars is converted into INR currency there is done that conversion rate we entered the 67 rupees right there is standard the currency is converted into iron. Okay, save it. Save it and post it after that he will get a confirmation and then go to post at the time of posting when standard program is running Okay.

Now let us see whether the program was the journal entries posted are not go to View request find this pending refresh it okay after completing of this program now we are going to start that cancellation before consolidation firstly how to go for that translation Okay completed Next step is go to create a translation. So, when journal entries the status of the entries posted Okay, four to $3 or $50 currencies or USD test okay next step is go to create a translation then navigation is currency translation the navigation is currency translation now automatically was like this or get enabled okay subledger and chill balance method is his actual method and what is your target currency cast iron Ernie right. When enter the target this is the target currency and what is the period match period go to click on that translate gender program is journey. Let us see Whether this program is successfully completed, if this program is successfully completed now the translation itself completed successfully completed okay.

Close it after that go to start the consolidation process consolidation define consolidation. consolidation define consolidation you the consolidation name test Saturday share you can give any name the name is purely user defined data consolidation the description is not mandatory and asking the consideration attributes nothing but a parent a primary ledger, this ledger and what is that currency test ledger currency and what is a secondary ledger has two sub ledger and they got to do the mapping how to do the consolidation means with the help of their mapping knowledge, okay, now go to click on the mapping to mapping the segment's click on the mapping and go to view them mapping name What is the name of the mapping, test mapping and what as a chart of account test accounting structure and the secondary sources test to serve a context To go to how to mapping the segments please with help of the segment tools go to click on the segment tools actually here the system given different type of roles with help of arrows we are going to mapping the segments The rules are the four types not assign copy value from assign a single value and roll approach okay.

So, what is a not a central when we are going to use the not assign role means any external segments in our retail the chart of accounts that are not into the parent at the time we are going to use they're not assigned any extra segment into the child charter section. So, that particular segments are not into the parent charter. Recall. At that time, we have to use a not a central copy value from if the two charter icons content is the same type of segments and that can be how to use that now. Copy value from the to charter seconds contains the same type of the segments at that time we are going to use this copy value from And next is assign a single value in the parent whatever the excess segments into the parent charter record. So, that are not segment into the child chart of record at that time we are going to use that as a signal value and roll up notes we are not using this one okay.

So, these are the three rows with help others we are going to mapping those segments. The first segment into the parent is the company and maybe in the secondary company or company segment is that both are equal. You both are equal then we have to use a copy value from it both segments are equal, then we have to use the rule as copy value from department is also common right into structures. department is also common that's why we have to use a carbon copy value for up and account is also common into segments to chart of accounts. So use that rule as a copy value from and where is the product is that extra segmented with the parent the chart of account but not in the chain. If the segment is not into the chair we have to use that last assign a single value what our center value of the product itself 001 but any extra segment with a chain is not matching with the parent that can we have the user not assigned role so I always assign the violence from parent to child but not child to parent.

Okay. Okay, now go to say with this is a mapping transaction complete fire records upload and save now assign the mapping to the consolidation customer happy okay after that go to click on the transfer Do you want to close this form before opening the new form? Yes Do you want to proceed with consolidation transfer before opening the new form is now I will record my sales transaction complete one record upload and save okay. So tasking the consolidation transfer. So by default all the details are taken and what is the period is March period on standard the red is March after that go to click on that transfer button. Now, you are tracking correlation concurrent request status by 943748.

Let's say this request is successfully completed or not. If the request is successfully completed, now you will get a output consolidation but no consolidation is completed and what that The journal entry we created. So, the journal entry is transferred from a sub sub sub chart of account to primary chart of account at the time of transfer, the currency is also translated. Let us see whether this program is successfully completed or not go to View request. Find now the process is running here go to refresh the data after consolidation is completed now journal import is also one more standard program is also activated automatically means the journal is imported from secondary ledger to primary ledger at the time of importing the currency is also converted according your conversion rate. The secondary currency is the Euro USD, but our parent currencies are Not only right.

So, the journal entries converted imported from secondary ledger to parent ledger at the same time the currency is also converted from USD into INR. So, we entered the amount is 450 dollars right. So, basically based on the conversion that we entered the 67 rupees I think right. So, based on the rate the currency is converted into iron at four to $3 is equal to how much I enter. So, I will see that I enter currency Okay, so, now we are in the secondary ledger if you want to see the journal entries find now the journal entries created review the journal So, this is where this journal we enter it right now this journalism important from chain ledger to current ledger. Let's go to find the journal into the parent.

How to find documents before going to query the journal into the parent. First we need to assign the parent primary ledger to responsibility level outer segments with help of the profile option. If you want assign the profile option nostrum should log into the system administrator responsibility. System Administrator profile system. application is gender ledger General Ledger Mission Operations Close it again go to log into the GL. Now let us go to find or the consolidation journal how to find out the journal the navigation is journals and find in the beginning that concern the journalist created and amount is also converted into iron not 30,001 50.

We ended the 450 dollars right the 450 dollars is equal to 13 Thousand 150 based on the conversion rate based on that conversion rate go to review the agenda. So, this is a review the dementors the dental is imported from child into parent Okay. Now this is a test ledger and period is mass period category consolidation and this is a test INR is your parent currency that is student debt. Okay this is a vector date and amount is transferred from expensive second data to cash account. The general import is created the journal is imported from secondary ledger to parent ledger. Why because at the time of fearing always, the secondary ledger transactions are consulted in the parent Before the consolidation we have to go for that translation and why because the two ledger currencies are different right.

The two ledger currencies are different okay the currencies are different you must and should go for the currency conversions. If you want to do the currency conversions compulsory we require the conversion rate already we entered the conversion rate so 67 rupees right. So, based on the 67 rupees the currency is converted from USD into IN USD into INR only okay. So after after consolidation is completed now the transactions imported from secondary ledger into primary ledger at the time of importing it convert convert the current See also okay whatever the transactions are there are a number of transactions are there all the transactions are imported from secondary ledger to primary ledger okay this process is nothing but a consolidation in the consultation we have to go further translation if you want to do the translation compulsory we require the conversion rate the conversion rate is not affixes fluctuating daily whenever you want to do the conversion will required up to date conversion rates whenever you want to do the conversion will require up to date conversion rates okay.

So this is nothing but a consolidation process. Okay, so this is a consolidation process compass when the cancellation is mandate remains if the company maintains more than ledges okay if the company maintains more than ledges at the time very clear this consolidation process so if the company meant two Ledger's the two Ledger's that one is a parent like the second one is a child ledger always the currencies of two ledger is different only. If the currencies are different compass or we have to go for that currency conversions, if you want to do the currency conversion will require up to date conversion rate. Okay, this is nothing but a consolidation process. And the next video we'll see cross validation rules. This is an important topic.

Cross validation rules