Consolidation
A three-step guide to get started with consolidation in Francis
1. Connect your ERP
To consolidate data, you need at least two entities connected from the same or different ERP systems. If you're yet to establish connections to two or more entities, navigate to Data Sources in the menu and add your connections.
Please note that adding subsequent connections is always an option. In other words, you can add more entities later on, whether they're from your current ERP system or a new one. This flexibility is especially useful if your company expands into new markets or acquires additional subsidiaries.
2. Map your chart of accounts
Once you have successfully connected to your ERP, the chart of accounts for each connected entity will become accessible through the mapping view (Data sources) within your model. From here you will need to consider whether you want to indirectly or directly consolidate your entities.
2.1 Indirect mapping
In the indirect mapping method, the consolidated model intentionally does not include the actual account mapping. I.e., when mapping indirectly, you map your chart of accounts to distinct financial models for each entity.
This approach ensures full transparency between entities and facilitates the generation of entity-specific reports. Once your chart of accounts is mapped to these separate models, you then reference these entities in a consolidated view (see section 3).
This method is highly recommended and is the preferred practice for most Francis users. By choosing indirect mapping, you enhance transparency and gain more flexibility, ultimately leading to a more robust and efficient FP&A process.
2.2 Direct mapping
In contrast to indirect mapping, the direct mapping method involves unifying your chart of accounts by mapping them to a single financial model, rather than maintaining separate models for each entity.
While this method is generally not recommended, it might be suitable for users with fewer entities, particularly when one entity contains a relatively small amount of data that does not justify a separate financial model.
However, it's important to note that direct mapping reduces transparency and merges data across entities. This can lead to complications in reporting and probably won't yield the expected outcome for most users.
3. Consolidate entities
If you opt for direct mapping, your financial data will be consolidated immediately. This approach requires no additional steps for consolidation, provided that you have exhaustively mapped all accounts, ensuring automatic consolidation of your data.
Important: When consolidating indirectly mapped entities, always use calculated rows in the consolidation tab. Calculated rows keep the formula the same across all cells in a row, ensuring consistent and accurate calculations. Read more about calculated rows in our documentation to understand its use cases better.
On the other hand, if you chose the recommended indirect mapping method, you should already have a complete financial model for each connected entity. After mapping all accounts for each entity, your next step is to create a new tab, aptly named 'Consolidation'. In this section, you'll build your overarching financial model. This is done using calculated rows to structure it according to your needs while referencing the individual entity models you've previously established.
This dual-structure approach delivers both an in-depth financial model for each entity and a comprehensive consolidated overview, integrating the financial data from all entities. This method enables reporting at both the granular level (per entity) and the macro level (consolidated), offering more flexibility and allowing forecasts to be created for each entity.
Last updated
