Consolidation Pack Explained: What to Include, Example, and Why It Matters

A consolidation pack is designed to answer two questions:

• “Are the numbers mapped correctly to group reporting?”
• “Are the key balances supported and explainable?”

What a consolidation pack typically includes

A practical consolidation pack often includes:

1. Mapped trial balance
   • Local trial balance mapped to the group chart of accounts
   • Clear mapping rules for recurring accounts
2. Key balance sheet support
   • Bank reconciliation status
   • Major control account reconciliations (receivables, payables, VAT/tax, payroll)
3. Movement schedules
   • Fixed assets: additions, disposals, depreciation
   • Accruals and provisions movements
   • Deferred revenue movements (if applicable)
   • Debt/lease movements (if applicable)
4. Intercompany schedules
   • Intercompany receivables/payables by counterparty
   • Intercompany loans and interest schedules
   • Internal sales/recharges (where eliminations are required)
   • Explanations for any intercompany mismatches
5. Narrative and sign-off
   • Variance commentary vs prior month/budget
   • Notes on one-offs or unusual transactions
   • Preparer and reviewer sign-off

Example of why packs reduce back-and-forth

If an entity submits only a trial balance, group finance often still needs:

• Intercompany balances split by counterparty (to eliminate correctly)
• Confirmation that bank rec is complete (to trust cash)
• A fixed asset roll-forward (to validate depreciation and additions)
• Commentary for unusual movements

A consolidation pack captures those items up front, reducing late adjustments and shortening the time from entity submission to consolidated reporting.

Why it matters

Consolidation packs improve:

• Speed: fewer follow-up questions and fewer late journals
• Accuracy: better mappings and better intercompany matching
• Control: consistent sign-offs and audit trail
• Scalability: more entities without exponential close complexity

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1. Do we need packs monthly or only at year-end?
   Monthly packs are common because they reduce year-end pressure and catch issues earlier.
2. How is a consolidation pack different from a trial balance?
   A trial balance is balances only. A pack adds mapping, schedules, reconciliations, and explanations.
3. How do we stop packs becoming too heavy?
   Start with the essentials (mapped TB, intercompany by counterparty, key movements, sign-off, brief variances). Add only what reduces recurring errors.

Find out more about consolidation with AccountsIQ.