Consolidating Company Files in Sage Pastel Partner

Once consolidation is complete, you can manage the new company, but it differs from a typical company in key ways:

• Balances but No Transactions: The consolidated company includes balances but lacks individual transactions, so you can’t run a data integrity check.
• Potential Imbalances: If the original companies’ charts of accounts aren’t perfectly synchronized, the trial balance or balance sheet might not balance.

How to Use the Consolidate Function

Step 1: Access the Consolidate Function

1. Go to File.
2. Select Consolidate.
3. Click on Consolidate again. This will open the consolidation assistant, which explains the consolidation process.

Step 2: Review the Consolidation Process

1. Read the steps provided by the consolidation assistant.
2. Once you’ve reviewed the steps, click Next to continue.

Step 3: Understand Consolidation Limitations

1. You will see a window detailing the conditions required for successful consolidation.
2. Pause and read the conditions carefully.
3. If all conditions are met, click Next to proceed.

Step 4: Create the New Consolidated Company

1. You will be prompted to name your new consolidated company.
2. Enter the desired name.
3. Input the Supervisor’s password, which must exist in all companies being consolidated.
4. Click Next.

Step 5: Choose Companies to Consolidate

1. You will be taken to a window where you can select the companies to consolidate.
2. Read the notes provided in this window.
3. Double-click each company you want to consolidate. The selected companies will move to the designated box.
4. Once satisfied with your selection, click Next.

Step 6: Confirm and Start the Consolidation

1. You will see a confirmation window. Read the notes carefully.
2. If everything is correct, click on Process.
3. The consolidation process will begin. The system will merge the financial data of the selected companies.
4. This process may take 20 to 30 seconds. Be patient and allow the process to complete.

Step 7: Finalize the Consolidation

1. Once the process is complete, click on Finish.
2. You will be prompted to log into the new consolidated company by entering your password.
3. Enter the password and click OK.

Step 8: Adjust User Security Settings

1. You will be taken to the user security window.
2. Make any necessary changes.
3. Click OK to finalize the setup.

Congratulations! You have successfully consolidated your companies and can now start working in your new consolidated company.

What You Can Do in a Consolidated Company

• Print Financial Statements: Generate standard financial reports or use the Report Writer for custom reports. Typically, you create these reports in another company and then copy them over.
• Adjust Values: Make journal entries to adjust values. However, since there’s no ongoing link between the original and consolidated companies, it might be better to make adjustments in the original companies and then re-consolidate.

Important Limitations

• General Ledger and Budget Only: The system only consolidates general ledger and budget balances, not transactions or sub-ledgers. The consolidated company is strictly for generating financial reports.
• Consistent Parameters Needed: The company parameters (like periods and report writer categories) in each original company must be the same or compatible. The consolidated company inherits the parameters of the last company you consolidate.
• Report Inheritance: The consolidated company inherits any reports from the last company you consolidate.
• Account Number Assumptions: The system assumes that general ledger accounts with the same number represent the same items. It adds new accounts the first time it encounters them and updates balances thereafter. However, there are two potential mismatches:
  • Different Financial Categories: If accounts have the same numbers but different financial categories, the system generates a warning, and the trial balance or balance sheet might not balance.
  • Sub Accounts Discrepancies: If a general ledger account has sub accounts in one company but not in another, the trial balance won’t balance at the main or sub account level.

In summary, while the consolidate function is a robust tool for financial consolidation, it’s essential to be aware of its limitations and the importance of consistent account management across all companies involved.