We work with several Microsoft Dynamics NAV customers who are managing a retail parent company’s financials with at least one subsidiary entity. Consolidating operational and transactional data from multiple entities, sometimes with more than one currency, can be challenging without one of today’s financial consolidations solutions. As the amount and importance of information steadily grows, company decision-making basically requires a solution that can aid in aggregating data into a singular set of financial reports. If you’re depending on Dynamics NAV for your retail company, Revered Business Solutions, Inc is happy to lay out your options for an easy-to-use, powerful consolidations tool.
A definition. The term “financial consolidations” can be defined as a combination of organizational financial figures from separate subsidiaries into a unified set of financial statements. These reports aggregate information by reconciling whichever currencies are involved, eliminating any inter-company transactions between subsidiaries, and making any additional adjustments, manually or with a modern, powerful BI software – to come to an understanding of the comprehensive status of your parent organization.
But why do I need another tool? There are plenty of motivators for executives to seek an automated financial consolidations solution, but the top couple of reasons seem to be related to product age. Some executives are seeking to get rid of older tools that are too technically complicated, like Hyperion or Cognos/TM1, which typically mean that the IT team or a technical product expert has to be involved in managing the software. Meanwhile, others are hoping to upgrade from older solutions that are too simplistic for today’s business demands, like Excel, FRx, or Management Reporter.
At Revered Business Solutions, we were recently talking to a retail exec who uses Dynamics NAV and a third party consolidations solution to manage a number of entities for a global parent organization. He regularly has to follow rules and meet regulations that are set by each country in addition to currency conversions, like International Financial Reporting Standards to Generally Accepted Accounting Principles (IFRS TO GAAP) adjustments, with the dynamic flexibility of a consolidations tool. He produces statements that report beyond the General Ledger (GL) with a tool that is positioned within a completely integrated, comprehensive suite of Business Intelligence (BI) tools, like ad-hoc reporting, budgeting and forecasting, dashboards, and data warehousing. This article will zoom in on financial consolidations as one of your Dynamics NAV month end tasks, with a focus on how you can find the right tool for your retail organization.
To continue learning more about retail consolidations with Dynamics NAV, read the rest of this article here.