Luxury Retail Global Financial Consolidation
The Company
Luxury retail with boutique locations across multiple countries requiring sophisticated intercompany accounting and consolidated financial reporting.
What Needed To Be Done
The luxury retailer operated legal entities in North America, Europe, and Asia with complex intercompany transactions including inventory transfers between regions, shared service center cost allocations, and royalty payments for brand licensing. The organization required global configuration of the General Ledger to standardize the chart of accounts across entities while maintaining local statutory reporting requirements, enable automated intercompany elimination entries, and provide consolidated financial statements with currency translation for management and parent company reporting.
How Dynatuners Delivered
Dynatuners architected a global chart of accounts structure using shared main accounts with financial dimensions for company, department, cost center, and product line enabling consistency across legal entities while supporting local reporting variations through dimension combinations. Intercompany accounting was configured with due-to/due-from setup automating offsetting entries when transactions crossed legal entities, including inventory transfers, shared service allocations, and management fees. Currency configuration included exchange rate types for transactional, historical, and reporting purposes with automatic translation rules for consolidation. The team implemented elimination rules to remove intercompany revenue, COGS, and balance sheet accounts during consolidated reporting cycles. Advanced financial reporting structures were developed using Management Reporter to produce consolidated income statements, balance sheets, and cash flow statements with drill-down capability to source legal entities. Custom workflows were configured for intercompany reconciliation processes requiring finance teams to investigate and resolve variances before month-end close.
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