---
title: "Consolidation Areas and Units"
description: "Consolidation areas are used to summarize all consolidation units that are to be consolidated together. This could be groups or sub-groups, for example."
source_url: https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/defining-group-structure/consolidation-areas-and-units-conso-2
language: en
last_updated: 2023-08-16
---
# Consolidation Areas and Units

## Overview

Consolidation areas are used to summarize all **consolidation units** that are to be consolidated together. This could be groups or sub-groups, for example.

To facilitate administration, elements can also be grouped into **consolidation unit groups**.

Additionally, **total lines** can be used to display the total values for each consolidation area and consolidation unit group.

{% info-box %}
Consolidation areas are the **object of consolidation**, i.e. consolidation is performed in the consolidation areas. The values from the referenced organization elements are transferred to the consolidation areas using the app for [Data transfer and proportioning](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/data-transfer-and-proportioning.md). Based on the clear assignment of organization elements to [consolidation dimension elements](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/defining-group-structure/consolidation-dimensions-and-elements-conso-2.md) and consolidation units, it is always possible to determine which values come from which organization elements.

A single consolidation dimension element (e.g., a company) can be included in multiple consolidation areas.

If a group consists of several **foreign currency companies**, all relevant **exchange rate tables** have to be stored for the individual consolidation units.
{% /info-box %}

## Creating a Consolidation Area

To create a new consolidation area, select the folder **Consolidation areas** in the **Groups** workspace and choose **Create | Consolidation area** from the context menu.

The **Create Consolidation Area** dialog is displayed as follows:

'Create consolidation area’ dialog

Please configure the following options:

#### Name

Name of the consolidation area

#### Default consolidation unit

Selection of the [consolidation dimension element](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/defining-group-structure/consolidation-dimensions-and-elements-conso-2.md) that are to be used as the default consolidation unit of the consolidation area.

{% warning-box %}
- The default consolidation unit defines the highest-level **parent company in the consolidation area**. Based on this element, the effective ownership interests are calculated.
- All [consolidation dimension elements](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/defining-group-structure/consolidation-dimensions-and-elements-conso-2.md) are available for selection that have been configured beforehand.
- A subsequent change of the default consolidation unit is **not** possible.
{% /warning-box %}

#### Consolidation dimension

The dimension under which the previously selected consolidation dimension element was created is automatically used as the [consolidation dimension](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/defining-group-structure/consolidation-dimensions-and-elements-conso-2.md).

#### Start of the fiscal year

Start of the [fiscal year](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/platform-dimensions/fiscal-years.md) of the consolidation area

#### Default currency

[Default currency](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/platform-dimensions/currency-translation.md) to be used for the consolidation area

## Configuring a Consolidation Area

In addition to the default consolidation unit, you can configure the following for a consolidation area:

### Adding Further Consolidation Units

In each consolidation area, consolidation units can be created in addition to the default consolidation unit.

The number of consolidation units is limited to the number of consolidation dimension elements that were selected when creating the consolidation area.

Proceed as follows:

{% stepper %}
{% stepper-step %}
Select the **consolidation area** under which the consolidation unit is to be created in the structure view and do one of the following:

 - Choose **Create | Transaction currency** from the context menu
 - Click **Create consolidation unit** in the detail view
{% /stepper-step %}
{% stepper-step %}
The **Create consolidation unit** dialog is displayed as follows:

Create consolidation unit

{% /stepper-step %}
{% stepper-step %}
Select the **consolidation dimension element(s)** to be referenced as consolidation unit in the drop-down list and click **Apply**.
{% /stepper-step %}
{% stepper-step %}
Click **Save**.

{% /stepper-step %}
{% /stepper %}
### Grouping Consolidation Units

All defined consolidation units are shown directly below their consolidation area. To **facilitate administration**, elements can also be grouped into consolidation unit groups.

Proceed as follows:

{% stepper %}
{% stepper-step %}
In the structure view, select the **consolidation area** under which the consolidation unit group is to be created and select the **Create | Consolidation unit group** from the context menu.
{% /stepper-step %}
{% stepper-step %}
Enter a **name** for the consolidation unit group and save it.
{% /stepper-step %}
{% stepper-step %}
In the structure view, select the **consolidation unit group** and create the desired consolidation units below the group as described under [Adding Further Consolidation Units](#add).

{% /stepper-step %}
{% /stepper %}
### Adding Currency Translation

Currency translation within a consolidation area is always necessary if there are **foreign currency companies** in the group. If a group consists of several foreign currency companies, all relevant exchange rate tables of the individual consolidation units must be included.

To create an **exchange rate table**, proceed as follows:

{% stepper %}
{% stepper-step %}
In the structure view, highlight the **consolidation area** under which the exchange rate table is to be created, and click **Edit** in the detail view.
{% /stepper-step %}
{% stepper-step %}
Click **Add element** below the exchange rate table and select the desired exchange rate tables:

Add exchange rate table
 .

{% /stepper-step %}
{% stepper-step %}
Click **Adopt** and **Save**.

{% /stepper-step %}
{% /stepper %}
### Adding a Total Line

In order to display **total values**, any number of total lines can be created for every **consolidation area** and every **consolidation unit group**.

Select the element under which you want to create a total line and select **Create | Total line** from the context menu.

In the detail view of a total line, you can also define whether you want to **calculate the subtotal until the previous total line**.

'Create total line’ dialog

## Deleting an Element

To delete an element in the **Consolidation areas** workspace, right-click the desired element and choose **Delete** from the context menu.