In this article, we’ll explore your best options for financial consolidation tools to accelerate your Microsoft Dynamics AX experience as a retail organization.
Some Microsoft Dynamics AX users who are working as part of a retail company team are managing the financials for a parent company’s subsidiary entities. Consolidating transactional and operational information from more than one entity, at times with multiple money types, can be tedious without a modern financial consolidation solution. As data continues to grow in size and significance, company decision-makers are in need of a solution that can help aggregate data into a unified set of financial statements. If you’re utilizing Dynamics AX as a retail organization, this article aims to lay out your options that are business user-friendly and powerful for your consolidation tasks.
Let’s start by defining the term. Financial consolidation(s) is a term for combining company financial information from disparate subsidiary entities into a singular set of financial reports. These statements aggregate data while also reconciling diverse currency types, eliminating inter-company transactions between subsidiaries, and making any other adjustments, either manually or with a modern powerful BI solution to better understand the overall health of the parent organization. Two of the main reason executive teams are looking for a financial consolidation tool both revolve around product age.
I’m not saying that there aren’t plenty of reasons to shop for a modern, automated consolidation solution, but the top two are seemingly about product age. Some executive teams are interested in upgrading from older solutions that are too complex, like Cognos/TM1 and Hyperion, which require IT department involvement or a technical product expert to oversee the solution. Others are hoping to move away from a tool that is too simple for modern business needs, like Excel or FRx/Management Reporter.
Recently, I had the opportunity to talk to a retail exec who uses Dynamics AX and a third party consolidation solution to oversee multiple subsidiaries around the world. In this position, he regularly has to meet regulations particular to each country in addition to currency conversions, like International Financial Reporting Standards to Generally Accepted Accounting Principles (IFRS TO GAAP) adjustments, with the dynamic flexibility of his consolidation software. He reports beyond the GL with a solution that is positioned within a completely integrated, comprehensive suite of Business Intelligence (BI) tools, like
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