User-defined group of consolidation units created for consolidation and reporting purposes.

In the dimension that you have chosen for your consolidation, you can use the business object consolidation group to represent the structure of the group. Depending on the complexity of your group, you can:

• Group the consolidation units into a consolidation group
• Create multiple consolidation groups and arrange them into a hierarchy.
• Create multiple hierarchies of consolidation groups in parallel to structure the organizational units according to different perspectives

A given consolidation unit can belong to different consolidation groups, and a given consolidation group can belong to different hierarchies.

In each dimension, you can define the hierarchy levels and arrange these levels into the desired sequence. You can then assign the levels to the consolidation groups of a hierarchy to clarify the hierarchy structure.

The following graphic shows two parallel hierarchies in one dimension for a business area consolidation. The hierarchies each use part of the hierarchy levels that were defined for the dimension. Each consolidation group is assigned to only one level.

The next graphic shows an example of profit centers structured by group area. This is shown in a dimension for profit center consolidation.

Like the consolidation unit, the consolidation group depends on the dimension in which it was created. The master record that you create for a consolidation group therefore exists only in that dimension.

You specify the following information in the master record of a consolidation group:

• You specify master data such as the name, language key, and correspondence data.
• You assign a ledger.

• You assign control parameters such as the consolidation frequency and validation rule.
• If applicable, you assign the lower-level consolidation units and consolidation groups.

• If applicable, you enter control parameters for first consolidation and divestiture accounting for the assigned consolidation units and groups.

• If applicable, you assign control parameters such as the financial data type, tax rate, and translation method.

If the consolidation units are structured automatically, the system also creates consolidation groups. The following overview shows the characteristic values of the consolidation groups: