Proforma Consolidation Processor Adjustment Impact Analysis
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Solution Overview
Problem
Existing consolidation systems are inefficient and time-consuming due to the need for reprocessing all data after adjustments, limiting visibility and ability to perform 'what-if' analyses, as adjustments require posting to the consolidation ledger and reprocessing of all relevant data.
Innovation Solution
A proforma processing system that processes adjustments separately from the consolidation ledger, allowing users to view the impact of adjustments before posting, enabling 'what-if' analyses and reducing the overall processing time by only consolidating adjustment entries.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If adjustments are posted to the consolidation ledger and full reprocessing is performed, then adjustment impacts are accurately reflected, but processing time increases significantly
Solution Approach 1:
The patent segments the consolidation processing into two distinct parts: (1) proforma consolidation that processes only adjustment entries to generate preliminary impact analysis, and (2) full consolidation processing that runs independently on the complete dataset. This segmentation allows the system to provide quick adjustment impact feedback without requiring full reprocessing, thereby resolving the contradiction between accuracy and processing time.
Solution Approach 2:
The patent implements preliminary action by performing proforma consolidation on adjustment entries before the actual posting to the consolidation ledger. This preliminary processing generates a proforma consolidation journal that shows the expected impact of adjustments, allowing users to review and approve changes before they are permanently applied, thus providing accurate impact analysis without the time cost of full reprocessing.
2Measurement precision
If full consolidation reprocessing is performed after adjustments, then complete data accuracy is maintained, but user visibility and 'what-if' analysis capability are limited
Solution Approach 1:
The system performs preliminary proforma consolidation processing that generates a proforma consolidation journal showing the impact of adjustments before they are posted. This preliminary action provides users with visibility into adjustment impacts and enables 'what-if' analysis, while the actual consolidation data accuracy is maintained through the subsequent full reprocessing step.
Solution Approach 2:
The patent introduces an intermediary proforma consolidation journal that serves as a mediator between adjustment entries and the consolidation ledger. This intermediary structure allows users to analyze adjustment impacts in isolation before integration, providing enhanced visibility and analysis capability while maintaining the integrity of the complete consolidation dataset through separate full reprocessing.
3Reliability
If adjustments are processed through the full consolidation process, then all data relationships are maintained, but processing efficiency decreases
Solution Approach 1:
The patent segments adjustment processing into an efficient proforma consolidation step that handles only adjustment entries and maintains essential data relationships, followed by a separate full consolidation processing step. This segmentation dramatically improves adjustment processing efficiency while the subsequent full consolidation ensures complete data relationship integrity is maintained.
Solution Approach 2:
The patent applies partial action by performing consolidation processing only on the necessary subset of data (adjustment entries) rather than the entire consolidation ledger. This partial processing of adjustment entries in the proforma consolidation maintains sufficient data relationship integrity for impact analysis while significantly improving processing efficiency, with full data relationship integrity restored through the subsequent complete consolidation processing.
Data Source
AI summary
A system and method is provided for utilizing proforma processing on adjustments in consolidation processes. The system comprises a proforma consolidation processor configured for consolidating at least one adjustment entry received from an adjustment journal. The proforma consolidation processor only performs consolidation on the at least one adjustment entry. The results of the proforma consolidation is then output to a pending journal. An inquiry module allows display of the pending journal along with current consolidation ledger balances. If the results of the proforma consolidation are acceptable, then a post module posts the pending journal and the at least one adjustment to the consolidation ledger.