The carry forward is generated without considering current transaction data (e.g. account balances) thus facilitating the generation of the carry-forward directly after closing the last annual financial statement.
In advance of a period change you have to enter an accounting period. For details please see the guide master data.
figure: Setting up of the flags for transaction data according to ABR.
The creation of the carry-forward for a new period is subdivided into two routines:
We recommend to start with the carry-forward in group. With the group carry-forward you e.g. have the possibility to choose the consolidation companies as a selection criterion for the carry-forward of all companies belonging to one particular group or subgroup.
There are two possibilities to initiate the carry-forward in group:
1.) application PERKTK (carry forward in group total KF and VK)
2.) application KTKGES - Action - Create carry forward
to 1.) Since the applicatio PERKTK it is a global function (symbol = globe) you do not need to mark a line for the creation of the carry-forward. After finishing the carry-forward you can access the respective application by double clicking the menu items in the menu line. You can also access this application via -> marking -> context menu (right mouse button) -> display list.
figure: Calling up the creation of the carry-forward in group via PERKTK
to 2.) Moreover you can call up the period change in the group monitor (KTKGES) via "action" -"carry forward"
figure: Calling up the creation of the carry-forward in the group monitor (KTKGES)
No matter how the menu is accessed, at a change of period for each group/sub-group the master data, consolidation postings and group development transaction data related with the group (i.e. facts with group keys) are carried forward from the previous period to the new period. The creation of the carry-forward contains the following facts:
If the target area, i.e. the period intended to be carried forward into, already contains data for consolidation parameters (KTKPAR), group/sub-group company allocations (KTKGES), or report headers (REPK), no new carry-forward is created for this application.
figure: Message panel at existence of group data in the target period
If the consolidation postings of the previous period have been changed after the first creation of the carry-forward for the new period, the capital consolidations or other consolidation postings can also be carried forward individually.
Different from the creation of the carry-forward with the application PERKTK, which is always performed for the total group/subgroup, the sequent capital consolidations with FOLGEKON (KF) and the carry-forward of other consolidation postings with VORKON (VK) always have an effect only on the marked company.
figure: separate initiation of the sequent capital consolidation (FOLGEKON KF) for the marked company
figure: separate initiation of the carry-forward of other consolidation postings
The carry-forward routine VK comprises the following consolidation postings:
At implementing IDL Konsis usually the last existing annual financial statement is reconstructed in the consolidation system. For this reason it is not possible to work with previous periods in the report module in the year of implementation. For the same reason there is no previous period available for the carry-forward in the following year either. If you wish to work with a comparative period in the second year of the financial statement, you can add the comparative period to the report headers by using the function mass-change after the carry-forward.
figure: Mass-change of group reports
The following details about the creation of the carry-forward refer to the case that the previous period is an annual financial statement. For details about the creation of a carry-forward from an interim financial statement to the next one please see point 6 of this guide.
For details about the carry-forward of the capital consolidation postings please see 'action' - 'function' - 'create carry-forward new period' in the application 'KTKGES'. With the KF all capital consolidation postings are copied to the new period:
The individual consolidation functions (e.g. KK) in the voucher number are replaced by "KF". The only exception is voucher type FK/FF, which is copied to the subsequent period as voucher type FV.
In the subsequent period the KK, KF and LK postings of the previous period for companies with full or quotal consolidation are merged to one new sequent capital consolidation posting. It is a "gross" consolidation, i.e. there does not take place any aggregation/balancing, if an account is referred to several times in these postings. This way it is possible to maintain the remarks in the consolidation postings and thus the entire history. A note indicating the origin posting (e.g. "KK 12.2006") is entered in the remark of the carry-forward posting. The posting lines are merged "horizontally", i.e. per posting record number.
Depreciation postings of the previous year, such as capitalised goodwill, are carried forward within the KF voucher. At the same time the depreciation of the current year is automatically entered as fixed assets transaction and posted in the KF voucher.
If the previous period contains postings with elements affecting net income, you have to consider the following:
In the subsequent period the EK, EF, KF and LE-postings of the previous period for affiliated companies are merged to a new sequent capital consolidation posting, which belong to the consolidation function "KF". It is a "gross" consolidation, i.e. there does not take place any aggregation/balancing, if an account is referred to several times in these postings. This way it is possible to maintain the remarks in the consolidation postings and thus the entire history. A note indicating the origin posting (e.g. "EK 12.2006") is entered in the remark of the carry-forward posting. The posting lines are merged "horizontally", i.e. per posting record number. For the details about the carry-forward of depreciations and postings affecting net income please see the explanations about the 'full consolidation'.
Postings for minority interests are carried forward within the frame of the consolidation function sequent capital consolidation (KF) with voucher type FV. FK/FF-postings and KV-postings of the previous period are carried forward in a joint KV-voucher. Postings with the same keys are merged.
Deferred taxes (LK) of the previous period ( = year 1) are copied as KF-voucher to the subsequent period ( = year 2) If you create a carry-forward to the next target period ( = year 3) the KF and LK vouchers of year 2 are carried forward in a joint KF-voucher.
For details about the carry-forward of other consolidation postings please see 'action' - 'function' - 'create gr. carry-forward new period' in the application <KTKGES>. It may also be accessed separately (see point 2 of this guide). For the creation of the carry-forward of the consolidation postings SK, ZA and LT you have to use a retained earnings account defined in the respective consolidation parameter (KTKPAR). If it is not defined there, the carry-forward is performed analogue to all other consolidation functions - to the retained earnings account specified in the consolidation parameter for the capital consolidation (KK).
If the previous period contains postings with elements affecting net income, you have to consider the following:
For the creation of the carry-forward the respective original voucher is merged with the corresponding voucher for deferred taxes to a joint carry-forward voucher according to the following scheme:
Postings affecting net income from the consolidation D+C are realized in the subsequent year. Thus the result components are copied with the reverse sign to the subsequent period. The contra entry is posted to the retained earnings account.
Carry-forward postings are not carried-forward to the subsequent period. With the automatic consolidation D+C the consolidation voucher is created with posting type E. A carry-forward to the subsequent period is carried out nonetheless, provided that the original voucher is affecting net income.
Example:
Company 006 receives a participation result in 12.2006 by company 008 amounting to 180,000 EUR . Company 008 reports the corresponding profit distribution. Moreover company 006 shows receivables and a result amounting to 155,000 EUR. Company 008 posts this fact only in 2007. The tax percentage for deferred taxes amounts to 35%.
figure: Consolidation D+C in the origin period
figure: Carry-forward of the consolidation D+C in the target period
Postings affecting net income from the elimination current assets results (ZU) are realized analogue to the consolidation D+C in the subsequent period. In the application 'ZU' it can
figure: Elimination fixed assets results in the origin period
figure: Carry-forward of the elimination fixed assets results in the target period
Only postings with the posting types "WV" (recurring variable) or "WU" (=recurring with reposting) are carried forward. Automatically created ZA-vouchers are created with the posting type "WU".
Both original ZA-postings and existing carry-forward vouchers with voucher type VX are carried forward to the target period. They are merged during the creation of the carry-forward maintaining the original posting type, which is usually "WU".
figure: Elimination fixed assets results in the origin period
figure: Carry-forward of the elimination fixed assets results in the target period
Extraordinary postings are processed the same way as manual postings. For this reason the explanations for the following point correspond with the ones for the topic realization of carry-forward of manual postings.
In the manual consolidation postings (MB) the user can influence the relevance of the carry-forward. For this purpose the user can use the posting types "E", "WU" and "WV" for the creation of the consolidation vouchers.
During the carry-forward the application considers all vouchers with voucher type MB and the related vouchers with voucher type "VM" marked as "recurring", i.e. allocated to posting types "WU" or "WV". They are merged during the creation of the carry-forward maintaining the original posting type.
If you use different consolidation functions M0 ? M9 with the reference consolidation function MB, please consider the following: vouchers with the voucher number containing their company number in it are merged to a joint carry-forward voucher with voucher type "VM".
Those vouchers, which have been marked with an "E" as a non-recurring voucher, are not carried forward.
Example:
figure: manual posting with posting type "WU" in origin period
figure: Carry-forward of manual posting with posting type "WU" in target period
figure: Manual posting with posting type "WV" in origin period
figure: Carry-forward of manual posting with posting type "WV" in target period
Topic are the effects of the posting types
on the creation of carry-forwards in relation to the respective consolidation functions (e.g. KK). Aim of the presentation in this table is to convey a quick idea of the kind of the creation of carry-forwards. It shows the automatic program progress of the carry-forward to the next period, e.g. if a "first consolidation posting automatic" is allocated to the posting type "non-recurring posting" (E).
The matrix does not contain the posting type "recurring variable" (WV), which initiates the copy of the respective accounts to the next period quasi as a default voucher, i.e. without any values. The values of the new period can then be entered.
| Consolidation function | posting type "E" = non-recurring posting | Posting type "WU"= recurring fix with reposting |
|---|---|---|
| KK | Default posting type for KK-postings, generated via the system function KK (first consolidation manual and automatic) is "E". The posting is carried forward via the KF. Postings affecting net income are replaced by the account carry-forward according to KTKPAR KK. | Can be stated with manual postings. Carry-forward via KF. P/L account is replaced by the account carry-forward according to KTKPAR KK. |
| KF | Considered with repeated KF carry-forward (possibly merging with KK-postings) | not permitted |
| EF | Default posting type for EF-postings, generated via the system function EF, is "E". The posting is carried forward via the KF. Postings affecting net income are replaced by the account carry-forward according to KTKPAR KK. | Can be stated with manual postings. Carry-forward via KF. P/L account is replaced by the account carry-forward according to KTKPAR KK. |
| KA | Default posting type for KA-postings, generated via the system function KA, is "E". The posting is carried forward via the KF using posting type KV. Postings affecting net income are replaced by the account group carry-forward according to KTKPAR KK. | Can be stated with manual postings. Carry-forward via KF. P/L account is replaced by the account carry-forward according to KTKPAR KK. |
| KV | Considered with repeated KF carry-forward (possibly merging with KA-postings) | Can be stated with manual postings. Carry-forward just as with automatic creation via KF. |
| SK | Default posting type for SK-postings, generated via the system function SK, is "E". The posting is carried forward via the VK. Postings affecting net income are considered in the next period by a cross-entry to the account group carry-forward according to KTKPAR SK. | Can be stated with manual postings. Carry-forward just as with automatic creation via SK. |
| ZU | Default posting type for ZU-postings, generated via the system function ZU, is "E". The posting is carried forward via the VK. Postings affecting net income are considered in the next period by a cross-entry to the account group carry-forward according to KTKPAR KK. | Can be stated with manual postings. Carry-forward just as with automatic creation via ZU. |
| ZA | Can be entered manually. The system does not generate a carry-forward. | The amounts affecting net income from the previous period posted via the P/L are entered to the new period via the carry-forward. The P/L accounts are technically exchanged by the retained earnings account according to the consolidation parameter ZA |
| MB | no carry-forward | The amounts affecting net income from the previous period posted via the P/L are entered to the new period via the carry-forward. The P/L accounts are technically exchanged by the retained earnings account according to the consolidation parameter KK |
| AO | no carry-forward | Posting logic analogue to MB (see above) |
| LT to other consolidation postings (voucher types LS,LX,LZ,LA or LM) | no carry-forward | Considered in VK carry-forward. The LT-voucher is merged with the respective origin voucher of the consolidation function SK, ZA, ZU, AO or MB. The carry-forward is affected to the retained earnings account according to KTKPAR LT. |
In the manual consolidation posting (MB), the extraordinary consolidation posting (AO) and the consolidation posting of the elimination IC-profit of fixed assets (ZA) the user can generate consolidation vouchers as non-recurring postings (E). If these vouchers contain posting lines affecting net income or capital, a warning is displayed during the carry-forward routine, if vouchers affecting net income and/or capital have not been carried forward.
It is absolutely necessary to remove these failures in order to obtain a coherent carry-forward.
figure: Example error message at carry-forward consolidation postings (VK)
Several approaches can be considered regarding the capital reconciliation in the next period. Principally you have to distinguish between the capital (EK) according to the companies financial statement and the group capital. The group capital is substantially influenced by the consolidation postings.
If the capital transactions (KAPBEW) are completely maintained, the capital reconciliation of the companies financial statements can be carried out via the report capital development list. Here the current value of the capital accounts according to the account balances (KTOSAL) is compared with the capital development on the basis of the transaction types according to KAPBEW. If the KAPBEW of the previous period have been maintained correctly, these transactions are automatically transferred during the PERGES to the new period via posting key K"01". Another aspect are the ongoing changes during the current period, such as capital increases. If the capital development list is run without errors, the user knows that the capital has been developed correctly. In respect of content it is not possible to ascertain whether the capital addition is a capital increase or any other addition.
In addition it is possible to perform the reconciliation via the IDL connector. In this case the accumulated values of the capital from the previous period have to be selected. If these values are compared with the current capital values, the capital changes in the current period must explain the deviations (e.g. capital increases, decreases, profit distributions).
figure: Reconciliation company capital using the example of carry-forward with IDL Connector
Basic requirement for a successful group capital reconciliation is the correct use of the posting type in all consolidation postings relevant for the capital in the previous period. In particular the manual consolidation postings must be recurring. If the postings affecting capital have been controlled correctly they are transferred to the next period via KF and VK. If these requirements are fulfilled, the group opening balance for the capital postings, documented with the KF and VK postings in the KONBUCH, will be correct. The reconciliation and check of the capital postings can then be carried out via the KONBUCH. Depending on the consolidation function it is e.g. possible to select the capital posting lines and compare them with the capital postings from the previous period.
In the following you can see the selection of the account 'subscribed capital' for the periods 12.2006 and 12.2007 in the KONBUCH. In 12.2006 the application selects all those postings, which regard the group shares (consolidation function "KK") in the subscribed capital in the capital consolidation. In 12.2007 is displayed the sequent capital consolidation (KF).
figure: Selection 'subscribed capital' in KONBUCH 12.2006 with 'KK'
figure: Selection 'subscribed capital' in KONBUCH 12.2006 with 'KF'
If the reconciliation is realized directly after the creation of the carry-forward, i.e. even before the current consolidation measure, the amounts 'previous year' and 'next period' have to be the same. Requirement: all posting types have to be entered correctly in the vouchers of the previous year.
We urgently recommend reconciling the creation of the carry-forward before starting the annual financial statement.
For the reconciliation of the group capital you may also use the group capital development list as an alternative to the analysis of the KONBUCH. Analogue to the capital development list companies financial statement it is then necessarily required to completely maintain the capital transactions in the group. If all group capital transactions in the previous period have been maintained correctly, these are copied via the PERKTK with the carry-forward key K"01" to the next period. Both the effects from current consolidation measures and the capital transactions must result in the current book value of the group capital. The application calculates this check via the group capital development list in the REPK (in addition KAPBEW facilitates a direct reconciliation). If the group capital development list runs without any failure, the values of the capital must have been maintained correctly during the development. In addition it is also possible to perform the reconciliation via the IDL connector. In this case you first have to select the accumulated values of the capital from the previous period. If these values are compared with the current capital values, it must be possible to explain the deviations with the capital changes of the next period (e.g. capital increases, decreases, profit distributions).
figure:Reconciliation capital using the example of group carry-forward with IDL Connector
The above figure presents the detailed reconciliation of the capital effects for each consolidation function. These can also be separately activated via the IDL Connector. Thus it is e.g. possible to separately process the capital effects from the capital consolidation or the consolidation D+C. The figure shows the reconciliation sheet for the group balance sheet profit and the resulting group carry-forward in the subsequent period. On the basis of the total sum for each company (and segment) all postings affecting balance sheet profit are selected depending on the individual consolidation function. In the subsequent period the opening balance value for the group carry-forward is matched with this transition calculation. This procedure can be applied analogue to the other capital accounts.
IDL Konsis distinguishes between annual and interim financial statements by the period flag according to:
In financial statements during the fiscal year you can carry forward both from the last annual financial statement and from the last interim financial statement to the new period.
With the creation of carry-forwards during the fiscal year, nevertheless, we recommend to carry forward from one interim financial statement to the next one. This way e.g. changes of the participations or in the KONBUCH due to changes of the consolidation companies or profit distributions are maintained and do not have to be entered once again.
Provided that the previous period is an annual financial statement (period flag J according to the application ABR) the postings affecting net income are transferred to the retained earnings account. For developments you have to consider the following: the sum of all transaction data of the previous period are entered into the carry forward column of the development. For the detailed procedure please see point 2 and 3 of this guide.
If the previous period is a monthly or quarterly financial statement (period flag M or Q according to the application ABR) the postings are copied 1:1 without merging, changing or restructuring anything, independent of the posting type entered in the voucher header.
Exception: Vouchers with the posting type EP are not carried forward during the fiscal year either. For developments you have to consider the following: Development transactions of the previous period are copied to the new period without merging. During this process all existing development transactions are deleted.
If you have chosen the carry forward from one interim financial statement to another, the developments display the transactions of the previous interim financial statement 1:1 as a transaction of the new period immediately after the creation of the carry-forward. During the import of the transaction data all changes since the last interim financial statement can then additively be imported by the application 'import' via the function "run import-file (.TXT)."
The message of the subsidiaries, nevertheless, usually comprises all transactions from the last annual financial statement till the current interim financial statement. In this case you use the function "Delete data + re-import TXT-file" for the import. As long as the field "with carry-forward" does not contain a cross, the carry-forward postings remain unchanged. Only the movements of the current period are deleted in the developments.
Fig: Import of transaction data after creation of carry-forward of the last interim financial statement
Group/sub-group reports (group/sub-group flag "R" in the master application KTK) do not require a separate carry-forward of consolidation postings. The carry-forward postings in the consolidation postings are copied from the reference group (=real group) by the application REPKTK. Thus a creation of a carry-forward is only necessary in a real group (group/sub-group flag "K" in KTK).
At present the developments generally remain unconsidered for group reports.