Compiere allows you to define multiple Accounting Schema's so you can maintain books for financial reporting and data for management decision making in parallel. It also eliminates the cumbersome tasks of conversion, transformation, and consolidation of foreign subsidiaries and allows for the easy separation of management and legal reporting.
Consolidation accounting is the process of combining the financial results of several subsidiary companies into the combined financial results of the parent company. This method is typically used when a parent entity owns more than 50% of the shares of another entity.
Each Accounting Schema also defines the Elements which make up the Account Combination to be used for GL transactions. Organization and Account are required. Optionally you can also define Business Partner, Product, Campaign, Project and others. Additionally, Compiere allows you to define 2 User Defined elements to accommodate unique business profiles. This allow the organisation to consolidate by any allowable criteria.
Consolidation also occurs in many different silos within Compiere, shipping, sales, warehousing and purchasing to name a few