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Consolidations

Before consolidating returns

We recommend you do these steps before continuing the federal consolidation process.
  1. Enter all data consistently across each member of the consolidation.
  2. Clear all binder overrides and diagnostics from each binder, including e-file diagnostics for electronically filed returns.
  3. Balance and fully recompute all binders.

Enter detail consistently

Keeping the level of detail consistent for each company in the consolidated group's the key to a successful consolidation.
For example, Schedule D, Form 4797, 4562, 6252. Because the system allows data to be entered in several levels of Organizer, you'll want to maintain consistency from entity to entity for consolidation purposes.
Watch for inconsistent data in these areas:
  • 4562 overrides vs asset detail
  • Capital gain calculation options (net vs gross amounts)
  • 4797 gain/loss net amounts vs system-calculated 4797
  • Net income per books vs system-calculated net income per books
The danger with inconsistency's that totals on the supporting detail statements won't match the 1120 return amounts at the consolidated level. This often causes the system to produce adjustments in the
Consolidated Review
 screen in order for all data to balance.
The best way to enter data's at the lowest level of detail in the Organizer on all binders. As long as the data's entered consistently across all entities (for example, 4562 overrides), then data consolidates as expected.

This article applies to:

  • Product: ONESOURCE Income Tax
  • Return type: 1120 Corporation
  • Subject: Consolidations

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