Transactions and Balances.

[vangala.jpreddy]

Dear Gurus,

Please describe the following terms regarding GL-Consolidations

1. Transactions 2. Balances

Thanks in advance.

Jayaprakash.

[Kavali]

Hi friend,

Consolidation in GL can be done in 2 ways. Using Transactions method and Balances method.

We use the Transactions method to combine the information transaction by transaction of the subsidiarys with the parent company whereas in Balances method we take the monthend balance to combine.

It all depends on the requirement of the company whether to use translation or MRC and then consolidation process using the above methods.

Translation - Balances method of Consolidation

MRC - Transactions method of Consolidation

Also for using the transactions method of consolidation CURRENCY of both the subsidiary and parent should be same.

Hope u got it.

Bye

Raghu

[kommineni7]

In Transaction method, is it necessary COA also same?