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Eternify Labs

Multi-entity and consolidation

Every entity, one close.

Each entity keeps its own books in its own currency. Intercompany entries eliminate on their own, foreign exchange is revalued at the close, and the parent's statements are one report away.

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Multi-entity and consolidation, in motion
  • Functional currency per entityEach entity keeps its books in the currency it operates in.
  • Transaction currency on every lineForeign invoices and bills post with the rate of the day.
  • FX revaluationPeriod-end revaluation posts its own entry, reversed on settlement.
  • Intercompany matchingMirror entries in both entities, matched and checked.

What you get

Books per entity

Each entity has its own chart, functional currency, tax registrations and approvers. Nobody sees an entity they were not given.

Currency on every line

A line carries its transaction currency and the entity's functional currency. Revaluation runs at the close and posts its own entry.

Consolidation without a spreadsheet

Intercompany balances match, eliminations are proposed, translation differences go to the cumulative translation adjustment, and the group statements read from the same ledgers.

How it works

From many ledgers to one statement.

Pick a step to see it. The panel stays beside you while you read.

A new entity starts with a chart, a functional currency, its tax registrations and its approvers. Dimensions such as department and project stay consistent across the group.

Entities in the group

EntityFunctional currencyRegistrations
Harbourline Inc.CADGST/HST, QST
Harbourline US Inc.USDNone in Canada
Harbourline Services Ltd.CADGST/HST

A US dollar receivable is booked at the rate on the day and revalued at the period-end rate. The difference posts as an unrealized exchange gain or loss, and reverses when the invoice is paid.

US dollar receivable, USD 100,000.00

Booked at 1.3400
134,000.00
Revalued at 1.3500
135,000.00
Unrealized exchange gain
1,000.00

When one entity invoices another, the mirror bill is created in the other entity's books. The pair is matched, and the elimination is proposed for a person to approve.

Intercompany invoice of 50,000.00

  1. Invoice from Harbourline Inc.Receivable of 50,000.00Done
  2. Mirror bill in Harbourline Services Ltd.Payable of 50,000.00Done
  3. Pair matchedZero differenceDone
  4. Elimination proposedAwaiting the group controllerWaiting

Each entity's figures translate at the group's rates, eliminations come out, and what remains is the consolidated figure. Translation differences land in the cumulative translation adjustment.

Revenue, third quarter

EntityCurrencyLocalRateCAD
Harbourline Inc.CAD1,200,000.001.00001,200,000.00
Harbourline US Inc.USD300,000.001.3500405,000.00
Intercompany eliminationCAD-50,000.001.0000-50,000.00
ConsolidatedCAD1,555,000.00

Spend limits, approval authorities and segregation of duties are set per entity. A person can approve in one entity and only read in another.

Waiting for approval, by entity

Harbourline Inc.Payment run of 6 bills38,420.00Controller
Harbourline US Inc.Journal entry, accrual12,000.00US finance lead
Harbourline Services Ltd.Bill from a supplier2,150.00Approved

The parent's reporting package, transfer-pricing support and the board pack read the posted entries of every entity. Nothing is rebuilt from exports.

Consolidated, third quarter, CAD

Revenue
1,555,000.00
Cost of sales
622,000.00
Gross profit
933,000.00

Entities in the group

EntityFunctional currencyRegistrations
Harbourline Inc.CADGST/HST, QST
Harbourline US Inc.USDNone in Canada
Harbourline Services Ltd.CADGST/HST

Under the hood

Separate ledgers, one group.

Every entity is a ledger with its own entries. The group view is a read over those ledgers, with eliminations as reviewed entries of their own.

Capabilities

What a group needs

  • Functional currency per entity

    Each entity keeps its books in the currency it operates in.

  • Transaction currency on every line

    Foreign invoices and bills post with the rate of the day.

  • FX revaluation

    Period-end revaluation posts its own entry, reversed on settlement.

  • Intercompany matching

    Mirror entries in both entities, matched and checked.

  • Automatic eliminations

    Proposed from the matched pairs and approved by a named person.

  • Consolidated statements

    Group statements read from the entity ledgers, drill-down intact.

  • Transfer-pricing support

    Intercompany charges carry the basis and the evidence for them.

  • Parent reporting packages

    One package per period for the parent and its lenders.

Keep going with the rest.

  • General ledger

    Always current, with every entry traced to its source.

    Learn more

  • Reporting and FP&A

    Live statements, board packs and forecasts.

    Learn more

  • Controls and approvals

    The agent proposes, people approve.

    Learn more

Questions

Questions, answered.

How does consolidation work with a Canadian parent and a US subsidiary?

Each entity keeps its own ledger in its functional currency. At the close, the subsidiary's figures translate into Canadian dollars at the group's rates, intercompany balances eliminate, and the translation difference goes to the cumulative translation adjustment.

What are intercompany eliminations?

When one group entity invoices another, both books show the balance, but the group owes nothing to itself. An elimination removes the pair from the consolidated figures. Eternify Ledger proposes it from the matched entries and a person approves it.

Can different entities have different approvers?

Yes. Approval authorities, spend limits and segregation of duties are set per entity, so a controller can approve in one and only read in another.

Is consolidation an extra module?

No. Multi-entity books, multi-currency and consolidation are part of the ledger and are not a separate tier.

Close the whole group together.

Bring your entity list and your currencies and we show the consolidation on a working ledger.

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