Multi-Company Consolidation

Consolidation rolls several companies into one set of group accounts. Operate each entity with its own ledger, branches, and currency, then produce consolidated financial statements — with intercompany transactions eliminated and foreign currencies translated.

Who this is for: groups, holdings, and multi-entity businesses that need both standalone and group-level reporting.

Concepts

• Entity — a company with its own books (set up in XO Core → Org).
• Group — a parent that consolidates two or more entities.
• Intercompany — transactions between entities that must net to zero at group level.
• Translation — converting an entity’s currency into the group’s presentation currency.

Set up the group

1. Go to XO Books → Consolidation → New group.
2. Choose the parent entity and presentation currency (e.g. SAR).
3. Add the member entities and their ownership % (for partial consolidation / NCI).
4. Map each entity’s chart to the group chart of accounts (XO auto-maps matching codes; review the rest).

📷 Screenshot: the group structure with parent and member entities and ownership percentages.

Intercompany transactions

1. Flag accounts used between entities as intercompany (e.g. intercompany receivable/payable).
2. When you post a transaction between two entities, tag the counterparty entity.
3. At consolidation, XO matches and eliminates these so they don’t inflate group figures, and reports any out-of-balance pairs for review.

Currency translation

For entities in another currency, XO translates:

• assets/liabilities at the closing rate,
• income/expenses at the period-average rate, and
• posts the difference to a translation reserve in equity.

Set rates in XO Core → Org → Exchange rates.

Produce consolidated statements

1. Open Consolidation → Run.
2. Pick the group and period.
3. XO combines the entities, applies eliminations and translation, and applies ownership %.
4. Review the consolidated P&L, balance sheet, and cash flow; drill from any group line back to the contributing entities.
5. Lock the consolidation for the period when finalized.

Best practices

• Reconcile intercompany balances between entities before running the consolidation.
• Keep entity charts aligned to the group chart so mapping stays one-to-one.
• Run consolidation after each entity has closed its period.

Troubleshooting

• Intercompany doesn’t eliminate. The counterparty entity tag is missing on one side, or the two sides use mismatched amounts/dates — check the exceptions list.
• Group totals look off after translation. Verify the closing and average rates for the period.

Related guides

• General Ledger
• Budgets & Forecasting
• Analytics — Reports