> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vinmake.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Consolidation, intercompany and FX revaluation

> Intercompany mirrors that eliminate, period-end revaluation of open foreign-currency items, and the equity transactions.

# Consolidation, intercompany and FX revaluation

Sub-ledger 7, migration `0009`.

<Warning>
  **This family is built from specification, not from worked data.**
  Sub-ledgers 1 to 6 reproduce the v12 workbook's worked figures to the dong.
  Intercompany, FX revaluation and equity are *proposed only* in the workbook - the flows are specified with fields, enums and formulas, but no worked example exists to tie against.
  So this family is built from that specification, which is what the workbook intends but never executed.
  That is a weaker claim than the other six make, and it is stated rather than blurred.
</Warning>

## Three capabilities

### Intercompany mirrors

An intercompany invoice is meant to have two independently authoritative sides, and they must **mirror**: the seller's receivable equals the buyer's payable.

| Side   | Entry                                                |
| ------ | ---------------------------------------------------- |
| seller | `Dr 1100` (VAS 131 AR) / `Cr 4000` (VAS 511 revenue) |
| buyer  | `Dr <expense>` / `Cr 2000` (VAS 331 AP)              |

The current writer can record both legs inside one organization, but two legs derived from one input are not independent counterparty evidence.
`IC-MIRROR` reports complete only when independently authoritative entity and counterparty facts support the comparison; otherwise the family preserves a bounded partial or inconclusive state instead of certifying same-writer equality.
A genuinely missing or short mirror leg means the pair will not eliminate on consolidation, which shows up as revenue and cost that exist only because the group traded with itself.

### FX revaluation

An open foreign-currency item is restated at the closing or settlement rate.

```
difference = base x (closing_rate - booked_rate)
```

| Outcome         | Routed to                                  |
| --------------- | ------------------------------------------ |
| unrealized gain | `Cr 3950` (VAS 413 FX translation reserve) |
| unrealized loss | `Dr 3950`                                  |
| realized gain   | `4110` (VAS 515 finance income)            |
| realized loss   | `6210` (VAS 635 finance cost)              |

The unrealized-versus-realized split is the point.
An unrealized movement is a translation effect that sits in equity; a realized one has hit the P\&L because the item actually settled.
Collapsing them overstates or understates earnings by the whole translation swing.

`FX-REVAL` checks the formula holds for every revaluation, and `FX-RESERVE` reports the net position as an explainable balance.

<Note>
  This is the *period-end* half of FX. The *transaction-date* half is [`fx.resolve_rate`](/greatbook/capabilities/fx), which values a transaction when it posts.
  The two are deliberately separate: the booked rate is the historical fact, and revaluation is a later restatement of an item that is still open.
  Neither one changes the other's number.
</Note>

### Equity

| Operation                | Entry                                                                                          |
| ------------------------ | ---------------------------------------------------------------------------------------------- |
| capital contribution     | `Dr 1010` (VAS 112 bank) / `Cr 3000` (VAS 411 capital)                                         |
| dividend                 | `Dr 3100` (VAS 421 retained earnings) / `Cr 2200` (VAS 338 payable) + `Cr 2220` (VAS 3335 PIT) |
| loan converted to equity | reclassification from the facility to capital                                                  |

`DIVIDEND-PIT` checks that the withheld PIT equals `ROUND(amount x 5%)`, the Vietnamese dividend withholding rate.

## Consolidation-group authority

Migration `0060_group_authority` adds the authority needed to read a group without accepting a browser-supplied organization list.
It stores immutable group entity-code identities, non-overlapping effective-dated memberships, one effective parent, full-consolidation membership in v1, and revocable user read grants.
The dedicated `ws_group_reader` role is `NOLOGIN`, cannot bypass RLS, and resolves its member population from server-bound group, user, and period settings.

The group reader returns exact member contributions and request-time presentation-currency translation only when the whole population is comparable.
A missing member, incomplete membership window, mixed or unavailable book-currency history, missing direct rate, unresolved account, or unsupported account type withholds the affected group scalar.

<Warning>
  The group reader applies no intercompany eliminations.
  Its responses say that the figures are gross member contributions, not certified consolidated statements.
  Registry `1.14.1` still classifies `greatbook.group.reporting.read` as experimental and blocked, so this page does not claim a production group-report workflow.
</Warning>

`GROUP-TB` is no longer a Close checksum.
Summing already balanced journals proves only the ledger's structural debit/credit rule, not consolidation completeness, membership authority, translation, or eliminations.
The inventory tests explicitly require the former tautology to remain absent rather than count it as a passed group control.

## The checks

| Code             | Kind        | What it is                                            |
| ---------------- | ----------- | ----------------------------------------------------- |
| `IC-MIRROR`      | zero        | intercompany AR equals AP                             |
| `FX-REVAL`       | zero        | every revaluation follows `base x (closing - booked)` |
| `DIVIDEND-PIT`   | zero        | dividend PIT equals 5% of the amount                  |
| `IC-OUTSTANDING` | explainable | intercompany receivable still to eliminate            |
| `FX-RESERVE`     | explainable | net FX revaluation, gain positive and loss negative   |

## Where it is enforced

| Concern                                         | Code                                                                            |
| ----------------------------------------------- | ------------------------------------------------------------------------------- |
| the operations and their legs                   | `backend/app/logics/finance/consolidation.py`                                   |
| the schema                                      | migration `0009_consolidation`                                                  |
| effective group membership and read authority   | migration `0060_group_authority`, `langgraph_chat/devcenter/group_authority.py` |
| gross group trial balance and statements reader | `langgraph_chat/devcenter/group_reports_api.py`                                 |
| the checks                                      | `close_checks.run_consolidation_checks`                                         |

## The test that would fail if it broke

`backend/tests/test_consolidation.py` covers the mirror, the revaluation formula in both directions, the realized and unrealized routing, and the dividend PIT split.
`backend/tests/test_group_authority_schema.py` and `langgraph_chat/agents/accountant/tests/test_group_authority_live.py` cover immutable identities, effective membership, grants, RLS, and the dedicated reader role.
`langgraph_chat/agents/accountant/tests/test_group_reports_live.py` covers incomplete populations, exact translation, and the no-eliminations disclosure.
`backend/tests/test_close_inventory.py` requires `GROUP-TB` to remain absent.

Because there is no worked v12 data for this family, those tests are written against the specification's formulas rather than against reproduced figures.
That is the honest position: the arithmetic is verified, the fidelity-to-a-real-book claim the other six families make is not available here yet.

## What goes wrong without it

Un-eliminated intercompany trade is the classic group-accounts overstatement: revenue and cost both inflated by transactions the group had with itself, with no external counterparty and no economic substance.

Missing FX revaluation leaves foreign-currency payables and receivables carried at rates from whenever they were raised, so the balance sheet reports a position in a currency that has since moved, and the correction all lands at once whenever somebody notices.

## Related

* [FX as of the transaction date](/greatbook/capabilities/fx) - the transaction-date half
* [The seven sub-ledgers](/greatbook/capabilities/subledgers/index) - where this family sits
* [The Close checksums](/greatbook/capabilities/close-list) - the five consolidation checks and why `GROUP-TB` is deliberately absent
* [Statutory reporting](/greatbook/capabilities/statutory-reporting) - what the trial balance projects into