Multi-Company Consolidation
Running the numbers for five subsidiaries in five spreadsheets isn't consolidation, it's a monthly fire drill. Yukti consolidates across legal entities on the same ledger they were built on.
How Yukti Handles This
Entities share a structure without losing their own books
- Each legal entity keeps its own chart of accounts, fiscal year, and functional currency
- Shared common structure rolls transactions into a group view, no separate consolidation database
- Intercompany transactions tag as intercompany at the point of entry, identifiable for elimination automatically
Elimination entries strip out intercompany transactions
- A sale from one subsidiary to another nets out against the corresponding purchase
- Profit sitting in unsold intercompany inventory gets eliminated too
- Without this step, heavy intercompany trading would double-count revenue and margin
Currency translation posts to its own equity account
- Consolidated statements convert each entity's functional currency to the group reporting currency
- Translation adjustment posts to its own equity account, kept separate from operating forex gains
Role-based access separates local books from the group view
- Role-based access keeps a local controller inside their own entity's books
- A group controller or CFO sees the consolidated set
- Drill-down extends to the consolidated view, down to the originating entity and transaction
Where This Connects to the Rest of Your Books
Consolidation runs on every entity's own general ledger
- Each subsidiary posts its own transactions on its own chart of accounts
- Group trial balance builds directly from entity ledgers, no manual export-and-reformat every close
Sales and Purchase tag intercompany transactions at entry
- One entity invoicing another tags as intercompany on both the sales and purchase side
- Identifiable for elimination automatically, not a manual match across entities at close
- Multi-currency accounting is a prerequisite wherever entities operate in different currencies
Financial Reporting is where consolidation surfaces
- Same reporting engine produces both single-entity and consolidated P&L, balance sheet, and cash flow
- Drill-down stays intact down to the entity and transaction level
Where the AI agent helps
Before you run a consolidated close, the agent checks every intercompany pair.
Flags transactions booked on one side of the pair but not the other
Catches pairs booked at different exchange rates on each side
Surfaces the mismatch before the consolidated balance sheet fails to balance
See What This Could Save Your Team
Multi-company consolidation and inter-company elimination
You could save ~4.8 hours/month
Common Questions
How does Yukti stop intercompany sales from inflating our consolidated revenue?
A sale from one subsidiary to another tags as intercompany on both sides of the transaction at the point of entry. At consolidation, those tagged transactions get eliminated, netting the intercompany sale against the corresponding purchase so the group's consolidated revenue and cost of goods sold reflect only what actually left the company, not money that moved between entities the group itself owns.
Can each subsidiary keep its own chart of accounts and fiscal year, or do they all have to match the parent?
Each legal entity keeps its own chart of accounts, fiscal year, and functional currency where local statutory requirements call for it. Consolidation works off a shared underlying structure that lets Yukti roll those entity-level books up into a group view, so subsidiaries don't have to standardize their books to a single template before you can consolidate them.
What happens to the numbers when our subsidiaries operate in different currencies?
Each entity's functional currency converts to the group reporting currency at consolidation, using the exchange rate and method appropriate to that account type. The resulting translation adjustment posts to its own equity account, kept separate from the realized and unrealized foreign exchange gains and losses that come from the entity's normal operating transactions, so currency effects from restating for consolidation don't get blended with actual trading results.
Can a local controller close their own entity's books without seeing the whole group's financials?
Yes. Role-based access controls scope a local controller to their own entity, while a group controller or CFO role sees the consolidated set across every entity. The same permission model that separates entity-level access also governs who can post the group-level elimination and translation entries during a consolidated close.
Is consolidation a separate module we need to license, or is it built into standard accounting?
Consolidation runs on the same general ledger and reporting engine as single-entity accounting, using the multi-company structure every entity already posts to. It isn't a bolt-on module with a separate database to maintain and reconcile against the entity-level books.
See Multi-Company Consolidation in Yukti
Get a walkthrough of how Yukti handles your books, or compare plans to see what is included in the free community edition.