Merging Financial Statements

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=82 BGCOLOR="#006699" TEXT="#080000"> <div> <FONT SIZE="5" COLOR="#FFFFFF" FACE="Arial" ><B>ConStar 2000 Property Management Systems</B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="ConStar 2000 Property Management Systems"><U><B>home</B></U></A></div> <div> <A HREF="id41.htm" TARGET="_top" TITLE="Release Notes"><U>Release Notes</U></A>   |   <A HREF="id44.htm" TARGET="_top" TITLE="Investment Manager"><U>Investment Manager</U></A>   |   <B>Merging Financial Statements</B>   |   <A HREF="id46.htm" TARGET="_top" TITLE="Tracking Utility Consumption"><U>Tracking Utility Consumption</U></A>   |   <A HREF="id52.htm" TARGET="_top" TITLE="AR Transaction Definitions"><U>AR Transaction Definitions</U></A>   |   <A HREF="id55.htm" TARGET="_top" TITLE="Windows Terminal Services"><U>Windows Terminal Services</U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=150 BGCOLOR="#FFCC66" TEXT="#080000"> <bR> </td> <td valign="top" height=398 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>Merging Financial Statements</I></div> <bR> <div> The Constar 2000 system can combine the financial statements from several individual corporations into one consolidation database. Several techniques can be used to consolidate information.</div> <bR> <div> <B>Distribute Accounts Payable</B>:  When invoices are paid in the consolidation database, each expense detail can be catalogued to belong to one of the client databases. At the end of a month, these expenses can then be distributed to the client databases.</div> <bR> <div> <B>Combining AR & GL Only</B>: All activity that originates in the Accounts Receivable and General ledger modules of client corporations can be combined into the consolidation database.</div> <bR> <div> <B>Combining All: </B>All General Ledger activity, regardless of the module it came from, can be combined into the consolidation database.</div> <bR> <div> <B>Combining Budgets</B>:  The budget information in client corporationc can be combined into the consolidation database.</div> <bR> <div> <B>Combining Opening Balances</B>:  Balances forwarded from prior fiscal periods can be combined into the consolidation database.</div> <bR> <div> <B>Preparing for consolidation</B></div> <bR> <div> Create a new corporation of the same type (condominium, rental, etc.) as the corporations you plan to consolidate. You MUST insure that the fiscal period and the charts of accounts in the consolidation corporation and the corporations that are being combined are identical. </div> <bR> <div> <B>Identifying the consolidation and client corporations</B></div> <bR> <div> Go into Database Administration, Edit Corporations. Go to the TAB called “Communications”.  The screen will look like this:</div> <bR> <div> <IMG SRC="060d0f30.gif" border=0 width="464" height="243" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <bR> <div> For the corporation that is the consolidation database, put a checkmark into <B>Merge Master Corporation. </B> Click <IMG SRC="0614d1a0.gif" border=0 width="77" height="26" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"> to store this change.</div> <bR> <div> For the corporations that are the client databases, put a checkmark into <B>Merge Client Corporation. </B> Click <IMG SRC="0624d1a0.gif" border=0 width="77" height="26" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"> to store this change.</div> <bR> <div> <B>Different Merge Techniques</B></div> <bR> <div> <B>First Method:</B>     All accounts Receivable is done at the client corporation level, and all Accounts Payable is done at the consolidation corporation level. This method allows you to maintain books on individual corporations or buildings, but pay all the bills out of a consolidated bank account. You would then be able to print financial statements for each building as well as for the whole collection of buildings.</div> <bR> <div> <B>Second Method:</B> All accounting work is done at the client corporation level but the resulting financial statements should reflect the combined picture of the client corporations. This method allows you to create complete financial statements for the client corporation along with a consolidated financial statement showing the combined General ledgers. Please note that this method does NOT combine Accounts Receivable or Accounts Payable activity details.</div> <bR> <bR> </td> </tr></table></body>