Consolidation Setup

Applies toFinancial Consolidation

AudienceAll users

Last updatedNovember 20, 2025

GoldFinch can help companies consolidate subsidiaries at multiple levels using various base currencies.

To illustrate the process, these consolidation help pages are written for a fictitious US Holding Company (using USD) with three 100% owned subsidiaries operating in the US (using USD as the base currency), Canada (using CAD as the base currency), and Europe (using Euro as the base currency).

GL Ledger Setup

The following GL Ledgers must be set up.

GL Ledger Name	Ledger Type	Base Currency
Actual-US	Actual	USD
Actual-CA	Actual	CAD
Actual-Euro	Actual	EURO
Actual-CA (USD)	Converted	USD
Actual-Euro (USD)	Converted	USD
Elimination (US & CA & Euro)	Elimination	USD
Parent (US & CA & Euro)	Consolidation	USD

Elimination Ledger

Elimination (US & CA & Euro)

GL Ledger with Elimination Ledger Type must have the same base currency as the parent. An elimination GL Ledger must be set up for each level of consolidation.

Converted Ledger

Actual-CA (USD)

The GL Ledger with the Converted Ledger Type must be set up to convert the Actual-CA GL Ledger from CAD to USD, since the parent company uses USD as the base currency.

Actual-Euro (USD)

GL Ledger with Converted Ledger Type must be set up to convert the Actual-Euro GL Ledger using EURO to USD because the parent company uses USD as the base currency.

GL Accounts

To reduce month-end reconciliation effort, you should create separate Due-From and Due-To GL Accounts for each subsidiary. This ensures cleaner inter-company tracking and simplifies reconciliation across entities.

Field Name	Field Help
Is Intercompany	It must be checked for use in intercompany transactions and later eliminations.
Consolidate Rate Type	Default to Current since Due To/From GL Accounts are either Assets or Liabilities. Note You should use Historical for Owner’s Equity GL Accounts and Average for Income Statement GL Accounts.

Accounts (Customers and Vendors)

Each subsidiary must have a dedicated account to track inter-company purchase and sales transactions.
This account should have its own unique Default Receivable GL Account and unique Default Payable GL Account to ensure all inter-company activity is properly recorded and reconciled.

Field Name	Field Help
Is Intercompany	This must be checked to enable use in intercompany transactions.
Default Receivable GL Account	Mandatory. Enter the Due To/Due From GL Account configured for the subsidiary.
Default Revenue GL Account	Optional. If not blank, this account will be used for inter-company Sales Invoice posting instead of the Revenue GL Account defined in the Account Posting Setup.
Default COGS GL Account	Optional. If not blank, this account will be used for inter-company Sales Invoice posting instead of the COGS GL Account defined in the Account Posting Setup.
Default Payable GL Account	Mandatory. Enter the Due To/Due From GL Account configured for the subsidiary.

Company Setup

The Cumulative Translation Adjust Account is used to record the currency transaction differences when converting a subsidiary’s financial information from its base currency to the consolidated parent’s base currency.

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Article Consolidation-Setup  ·  Last updated November 20, 2025 · GoldFinch ERP Help Center