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Overview

The Perform Financial Report Data Roll-up process is an integral component of the Period Close cycle. It is, however, not embedded in the Period Close process itself because it may have to be run several times per close, unlike the other steps in the Period Close process, which typically are run only once per close.

Generally speaking, the purpose of the Perform Financial Report Data Roll-up process is to gather all the data required for financial reporting, which includes General Ledger (GL) data, budget data, and data from Adjusting Statement Entries and make it available to the Financial Report Writer. In a consolidated close (in which many Companies' data appears on a single Company's reports), this will require copying data from one Company to another. In a multicurrency consolidated close (in which the Companies being consolidated use more than one Reporting Currency), this will require currency translation as well.

Additionally, the Perform Financial Report Data Roll-up process calculates each Company's current earnings for the month and, where currency translation occurs, their Cumulative Translation Adjustment (CTA) as well.

Finally, it performs certain data integrity tests and alerts the user to any failures. For instance,

Does the total of the GL debits equal the total of the GL credits?
Do changes to Assets - Liabilities - Stockholders' Equity = changes to Revenue - Expenses for the period being closed and the year to date?

If any of these conditions are found, the data is in need of repair. Rootstock Customer Support will take the required action when the problem is reported by the user running the Perform Financial Report Data Roll-up process.

Navigation

Period Close Activities -> Perform Financial Report Data Roll-up

NOTE The user who is performing this function must be authorized for each Company - the Company being closed and all its parents (if any). The authorization is set on the Financial System User Company page.

Processing

The complexity of the operations performed by the Perform Financial Report Data Roll-up process depends on (1) whether the Company being closed participates in an inter-company consolidation and (2), if it does, on whether the consolidated financial reports require currency translation. Every Company falls into one of three levels of complexity. To a large extent, the degree of complexity is hidden from the user who performs the Period Close activities. It is explained here only so users will understand what the closing process is doing.

The simplest case. The Company being closed does not participate in an inter-company consolidation. Perform Financial Report Data Roll-up is run only once, with both the Parent Company and the Subsidiary Company set to the Company being closed. All the process will do is (1) calculate the Company's earnings for the period and (2) make budget data (if any) available to the Financial Report Writer. (If GL or budget data changes after Perform Financial Report Data Roll-up is run, it will have to be rerun.)

The medium-complex case. The Company being closed participates in an inter-company consolidation in which every company uses the same reporting currency. Perform Financial Report Data Roll-up is run once with both the Parent Company and the Subsidiary Company set to the Company being closed, and then again with the Parent Company set to each of the Company's higher-level parents. The Perform Financial Report Data Roll-up process does all that it would do in the simplest case and, additionally, it copies the Company's financial data to its parent companies.

The most complex case. The Company being closed participates in an inter-company consolidation in which currency translation will be required. Perform Financial Report Data Roll-up is run exactly is it would be run in the medium-complex case but, internally and without user intervention, it (1) translates the Company's accounts into each parent's reporting currency and (2) calculates the appropriate Cumulative Translation Adjustment (CTA) for each translation. But although the operation of the Perform Financial Report Data Roll-up process itself is the same in the medium-complex and most complex cases, in the most complex case there are several preliminary currency-related steps. If, for example, the Company being closed is a Canadian Company owned by a British Company that, in turn, is owned by a German Company, Perform Financial Report Data Roll-up will have to translate the Canadian Company's accounts from Canadian dollars into both British pounds and euros.

The Balance Sheet Rate is set up in the Foreign Exchange Rate Schedule object using a Schedule Type of Month End Spot Rate.
If the Company uses the Financial Budget feature in Rootstock and its parent company wants to see its Budget data translated in consolidated reports, then the rates to be used for translation will also be set up in the Foreign Exchange Rate Schedule object using a Schedule Type of Budget Rate.
There may be circumstances that require a particular General Ledger Account to be translated at a Historical Rate that is unique to that Account. Such rates are set up using the GL Historical Rate function.
P & L rates that are not set up in the GL Historical Rate function are calculated as the weighted average of actual Historical Rates in the Perform Financial Report Data Roll-up function and do not require any special attention from users.

If 'P&L Account Rollup Exchange Rate Method' on Financial Company Master is 'Year To Date Average' then the exchange rate between the currencies and data roll-up is calculated from the starting date of the year to the end date of the given period. The examples below assume that the fiscal year is a calendar year.

EXAMPLE

When running the Data Roll-up for period 1, the average of the exchange rates between the two currencies for each day in the month (from the 1/1 to 1/31) is calculated, then that rate will be used to convert the subsidiary balances for period 1 (January) into the parent currency.
When running the Data Roll-up for period 2, the average of the exchange rates between the two currencies for each day in the year (from the 1/1 to 2/28) is calculated, then that rate will be used to convert the subsidiary balances for periods 1 and 2 into the parent currency.

note25 (1).png NOTE While performing the Data Roll-up for each period, the previously calculated data for the current year will remain untouched.

If the 'P&L Account Rollup Exchange Rate Method' on Financial Company Master is 'Monthly Average' then the exchange rate between the currencies and data roll-up is calculated from the start date to the end date of the given period.

EXAMPLE

When running the Data Roll-up for period 1, the average of the exchange rates between the two currencies for each day in the month (from the 1/1 to 1/31) is calculated, then that rate will be used to convert the subsidiary balances for period 1 (January) into the parent currency.
When running the Data Roll-up for period 2, the average of the exchange rates between the two currencies for each day in the period (from the 2/1 to 2/28) is calculated, then that rate will be used to convert the subsidiary balances for period 2 (February) into the parent currency.

Title	Perform Financial Report Data Roll-up

URL Name	Perform-Financial-Report-Data-Roll-up