Multi-Entity, Multi-Currency Consolidation in Business Central Without a Separate Tool

If your business runs more than one company or works in different countries, you already know how tricky it can be to bring all your financials together. Each company may have its own currency, tax setup, or chart of accounts. When you’re trying to get a full view of your numbers, this can slow things down and create room for errors.

Many finance teams still rely on spreadsheets or external tools for group reporting. But that often means switching between systems, doing manual currency conversions, and checking formulas that can easily break. It takes time and makes reporting harder than it needs to be, especially at month-end or year-end.

This is where Microsoft Dynamics 365 Business Central makes a difference. It comes with built-in features that let you manage multi-entity and multi-currency consolidation without needing extra tools. You can pull financial data from all your companies, handle different currencies, and create clean, accurate reports, all inside Business Central.

In this blog, we’ll go over how multi-entity and multi-currency consolidation works in Business Central, why it helps, and how it can save time for finance teams dealing with group reporting.

What Is Multi-Entity Consolidation in Business Central?

Multi-entity consolidation in Business Central means bringing together the financial data of all your companies or subsidiaries into one set of financial reports.

This includes:

• Balances from general ledger accounts
• Currency adjustments for reporting
• Intercompany eliminations
• Shared dimensions (like cost centers or departments)

You can consolidate financials from companies that operate in different countries, use different currencies, or follow different fiscal calendars directly inside Business Central.

What About Multi-Currency Consolidation in Business Central?

Multi-currency consolidation helps when your group includes companies operating in different currencies (like USD, GBP, or EUR). Business Central lets you:

• Set exchange rates for each currency
• Revalue accounts automatically based on current rates
• Generate consolidated financial statements in a base currency
• Handle unrealised gains or losses for reporting

The system supports currency revaluation rules that comply with accounting standards, so you don’t need to calculate everything manually.

Why Businesses Need Built-In Financial Consolidation?

Many businesses use third-party software or Excel sheets to manage consolidation. But that brings problems:

• Manual effort: Copy-pasting data across tools is time-consuming
• Errors: Small mistakes in formulas or currency conversions can distort results
• Delays: Consolidation takes longer, delaying board meetings and decision-making
• Compliance risk: Inaccurate data puts you at risk during audits

With Business Central, these issues are reduced because everything is managed within the ERP system. No exporting, external tools, or double entry.

Key Benefits of Using Business Central for Consolidation

Here’s what makes Business Central a strong solution for multi-company and multi-currency financial consolidation:

1. One System, Multiple Entities

You can create a separate company profile for each legal entity and still run shared reports. All entities can have their own tax rules, currencies, and chart of accounts.

Use case: A UK-based business with subsidiaries in Germany and the US can consolidate financials, even with different local requirements.

2. Currency Management Made Simple

Set up exchange rates, and Business Central will apply them during consolidation automatically. No need to track conversions manually.

Use case: A company billing in EUR and reporting in GBP can consolidate financials with exchange rates pulled from reliable data sources.

3. Intercompany Transactions

Intercompany sales, services, or inventory transfers are common in group companies. Business Central automates this process.

• Create an invoice in one company
• The receiving company gets a matching purchase order
• Both entries are linked and can be eliminated during consolidation

Use case: Company A sells to Company B within the same group. Business Central eliminates that transaction when creating the consolidated report.

4. Accurate, Compliant Reports

Built-in reporting tools help you stay ready for audits or board meetings. You can also track changes, approval workflows, and adjustments.

Use case: Finance teams can quickly generate reports for regulators, investors, or management, without rechecking numbers from different sources.

5. Reduced Workload and Faster Closing

Because consolidation happens inside the ERP, there’s no need to chase data or move files around. This saves time, especially during month-end or year-end closings.

How to Set Up Financial Consolidation in Business Central?

Setting up consolidation is straightforward. Here’s a simplified process:

1. Create Each Company in Business Central

Each legal entity (subsidiary or division) should be created with its own settings—chart of accounts, base currency, and fiscal year.

2. Set Up a Consolidation Company

This is a dummy company used only to consolidate financial data. It doesn’t post actual transactions, it only receives data.

3. Map Chart of Accounts

Make sure the accounts in each company map correctly to the consolidation company’s chart. Business Central allows for automatic or manual mapping.

4. Define Exchange Rates

Input your daily, monthly, or average exchange rates for all required currencies.

5. Import Financials

Run the built-in consolidation function. You can do this monthly, quarterly, or as needed.

Common Scenarios Where Business Central Works Well

Scenario 1: Multi-Subsidiary Group in the UK

A group with three UK companies can consolidate for internal and HMRC reporting. All companies use GBP, so there’s no currency conversion, but intercompany eliminations are needed.

Scenario 2: Global Operations with Shared Services

A company with entities in the UK, US, and India shares HR and IT services. Business Central helps manage intercompany billing and eliminates double-counted revenue or expenses.

Scenario 3: E-commerce Business with Brands

An online business with different brands set up as separate companies can run brand-wise reports and still consolidate for investor reporting.

Multi-Entity ERP with Dynamics 365: Who Should Use It?

This setup is ideal for:

• Holding companies with multiple subsidiaries
• Franchise models with regional operations
• Businesses expanding across borders
• Firms with group-level reporting obligations

It also helps businesses prepare for investment or acquisition, where clean and accurate consolidation is important.

Things to Keep in Mind

• Data must be posted and up-to-date before running the consolidation
• Account structures should be standardised to reduce mapping issues
• Exchange rates should be reviewed regularly to ensure accuracy
• Use permissions and roles to protect sensitive financial data

Final Thoughts

If your business manages more than one company or operates in more than one currency, financial consolidation is part of everyday life. Doing it manually or with separate tools only adds stress and risk.

With Microsoft Dynamics 365 Business Central, you can handle multi-entity, multi-currency consolidation directly within your ERP system. It simplifies compliance, cuts down the close cycle, and gives your finance team the tools they need to work smarter.

Need Help Getting Started?

At Dynamics Square, we can help you implement Business Central correctly. Whether you're managing a local group or expanding globally, our experts can help set up smooth consolidation and intercompany processes.

Contact us today to get started.