Even if all your companies don’t use the same GL system, you can still make it work by writing an interface between ledgers.
We’ve done this for many clients because it’s generally easier (and more cost effective) than buying new software just for consolidation 4.
Scaling Up to Multiple Systems On purpose, we’ve used a simplified example.
In reality, it’s rare to have such a simple situation.
ACME makes and sells widgets to wholesalers around the country. And these retail stores are set up as a different legal entity.
We often use this ability to get elimination entries into systems and out of spreadsheets.
Database driven ledgers are preferable to spreadsheets because they are far better at ensuring data consistency.
As companies grow, structures get complex, and multiple levels of consolidation must occur.
While some people stick with an Excel solution as long as possible, it just isn’t trustworthy.