---
title: "Creating and Configuring Consolidation Areas"
source_url: https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-1/create-and-configure-consolidation-areas
language: en
last_updated: 2023-08-16
---
# Creating and Configuring Consolidation Areas

## Overview

**Consolidation areas** contain organization elements (e.g. reporting entities, cost centers or subordinate consolidation areas) and can be used to display group and subgroup structures in Lucanet.

**Consolidation areas** are required for the wizard-assisted consolidation using Consolidation 1 and can be created in the **Consolidation areas** workspace, where the corresponding reporting entities can be assigned.

## Creating a Consolidation Area

Consolidation areas are created in the **Consolidation areas** workspace. To create a consolidation area:

{% stepper %}
{% stepper-step %}
Open the **Consolidation areas** workspace in the **Consolidating** folder.
{% /stepper-step %}
{% stepper-step %}
Right-click the **Consolidation areas** folder or a folder and choose **Create | Consolidation area** from the context menu:

Create a consolidation area

{% /stepper-step %}
{% stepper-step %}
The **Create consolidation area** dialog is displayed:

Dialog 'Create consolidation area'

{% /stepper-step %}
{% stepper-step %}
Enter a name for the consolidation area in the **Name** field.
{% /stepper-step %}
{% stepper-step %}
Select the **transaction currency** in which the consolidation is to take place. **Caution**: The transaction currency cannot be changed anymore after being created!
{% /stepper-step %}
{% stepper-step %}
Click **Save**.

 The consolidation area is created.
{% /stepper-step %}
{% stepper-step %}
In the detail view of the new consolidation area, click **Edit** and configure the consolidation area (see following section).

'Edit' button in the details view of a consolidation area

{% /stepper-step %}
{% /stepper %}
## Configuring a Consolidation Area

The detail view of a consolidation area is displayed as follows:

Detail view of a consolidation area

The following options for consolidation areas must be configured:

#### General

- **Name**: Name of the consolidation area
- **Consolidation reporting entity**: The organization element in which the consolidation postings are to be made

#### Organization elements

Composition of the consolidation area. In the table, choose:

- **Assigned organization elements**: Organization elements that are directly assigned to the consolidation area
- The **parent company**
- **Proportional**: Proportionally consolidated consolidation units
- **Percentage**: Percentage for proportionally consolidated consolidation units
- **Subordinate consolidation areas**: Consolidation areas that are subordinate to the consolidation area (= subgroups)