1. Create a subsidiary company with a USD currency, a consolidated company with a SEK currency, and two periods.

2. In the Chart of accounts form for each company, create accounts for the following account types:

   • Profit and lossaccount

   • Bank account ( Balanceaccount)

   • Equity ( Asset) account

3. Complete the following tasks for the consolidation company.

   1. Enter an historical exchange rate for the subsidiary currency for September 15 in the Exchange rates form.

   2. For each of the accounts created, enter values in the Consolidation conversionfield on the Generaltab in the Chart of accounts form as indicated in the transactions table.

   3. Enter the rates for the consolidated company that are indicated in the transactions table below in the Averageand Closingexchange rate fields for the subsidiary currency on the Consolidatein the Exchange ratesform.

   4. In the System accounts form, select the equity ( Asset) account in the Ledger accountfield for the Profit & loss account for consolidation differencesposting type.

      Note
      When you set up consolidations for your company, follow the accounting practice of your country/region regarding the posting of consolidation differences for integrated or self-sustaining subsidiaries.

4. In period 1, post a cash on delivery (COD) sales transaction for USD 100 in the subsidiary.

5. Debit the bank account and offset the amount in the profit and loss account.

6. In the Consolidation, Onlineform, prepare the online consolidation for the consolidated company. You can enter the subsidiary in the Company accountsfield and select Profit and lossin the Conversion difference accountsposting field.

7. Complete the online consolidation process for period 1.

8. Close period 1 in both the subsidiary and the consolidated companies and include any accumulation from the profit and loss account in the equity account.

9. Open period 2 in both the subsidiary and the consolidation companies.

10. In period 2, post the following two transactions in the subsidiary company:

• The COD sale (debit) of USD 100 for the bank account with an offset transaction in profit and loss.

• A transaction (debit) of USD 50 for the bank account (capital infusion) and an offset transaction in the equity account.

1. In the Exchange ratesform for the consolidated company, change the values in the Averageand Closingexchange rate fields for the USD currency as indicated in the table below.

2. Complete the consolidation process for period 2, and close period 2 in the subsidiary and the consolidation company.

3. Verify that the ending balances in the bank and the equity accounts are the same.

4. View the following two different transactions in the consolidated company:

• SEK 25, which is related to the incoming capital transaction

• SEK 100, which is related to the COD Sale transaction.

This table displays the consolidation by transaction.

This table displays the transactions for the consolidated company