Basic Elements of Consolidation 2

Group

A group includes the totality of all units to be consolidated.

The group structure can be defined using consolidation dimensions and consolidation areas.

For additional information on groups, see Defining the Group Structure.

Consolidation dimension

All elements of an enterprise that you wish to consolidate together, e.g., companies, segments or business areas, are summarized in consolidation dimensions. The consolidation dimension serves as a link between the organization elements and the consolidation areas and specifies how data of a corporate group are to be segmented. 

Consolidation dimension element

Consolidation dimension elements represent economic units such as companies, segments, or business units. 

Any number of consolidation dimension elements can be created and grouped together in each consolidation dimension. 

Additional information on consolidation dimension elements can be found under Consolidation Dimensions and Dimension Elements.

Consolidation area

The consolidation areas are the object of the consolidation, i.e. the consolidation is performed in the consolidation areas.

The values from the referenced organization elements are transferred to the consolidation areas with the app for data transfer and proportioning.

Additional information on consolidation areas can be found in Consolidation Areas and Units.

Consolidation unit

Consolidation units represent the consolidation dimension elements in consolidation areas.

A default consolidation unit is to be defined for each consolidation area. In addition to the default consolidation unit, any number of consolidation units can be assigned to a consolidation area.

Additional information on consolidation units can be found under Consolidation Areas and Units.

Consolidation unit group

To simplify administration, consolidation units can be grouped into consolidation unit groups.

Additional information on consolidation unit groups can be found under Consolidation Areas.

Master data administration

To create consolidated financial statements, you must first define the master data that forms the basis for Consolidation 2.

Using the master data management, the following issues within a group are defined, displayed and saved:

• Investment relationships in the form of ownership interests
• Consolidation methods for the consolidation area
• Amortization of goodwill
• Translation with historical exchange rates for foreign currency companies

Additional information on master data administration can be found under Master Data Administration.

Consolidated financial statements

The consolidated financial statements provide a comprehensive overview of the economic situation of a group.

During consolidation, all results of the affiliated companies are combined and intercompany transactions are eliminated. 

An consolidated financial statements element is created for each consolidated financial statements and time period.

In the consolidated financial statements element, all relevant consolidation apps are created and configured, and finally executed.

Additional information on consolidated financial statements and consolidated financial statement elements can be found under Creating Consolidated Financial Statements.

Data transfer and proportioning

With the Data transfer and proportioning, the values of the general and subledger are transferred from the organization elements to the consolidation areas. All dimensions (such as transaction types, partners and currencies) are taken into account based on transaction figures. 

Furthermore, the values transferred from the single-entity financial statements are prepared for consolidation according to the consolidation method defined in the master data. 

Partner assignments can be updated and data from statistical ledgers adopted during the data transfer if desired.

Additional information on the data transfer and proportioning can be found under Data Transfer and Proportioning.

Consolidation apps

The consolidation apps are used to perform the actual consolidation. Depending on the desired method for the consolidation different apps can be created and executed.

The following apps are currently available in the Lucanet CFO Solution Platform:

• Elimination of intercompany income and expense
• Elimination of intercompany debt
• Equity elimination

Additional information on the consolidation apps can be found under Creating and Configuring Consolidation Apps.