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 Consolidation Chart of Accounts

Definition

A systemic index for structuring financial statement items.

Use

The use of a consolidation chart of accounts in the data model is optional . If you do not want to use consolidation charts of accounts, you can instead use multiple hierarchies of financial statement items.

Note Note

For the characteristic consolidation chart of accounts to exist in the data basis, you need to compound thecharacteristics with the role financial statement item .

End of the note.

Recommendation Recommendation

To boost performance, we recommend that you use a consolidation chart of accounts that is as small as possible. You can keep your consolidation chart of accounts small by creating subassignments for existing financial statement items.

End of the recommendation.

Structure

The consolidation chart of accounts is not dependent on any data except the client. By contrast, the financial statement items and breakdown categories are dependent on the consolidation chart of accounts.

There can be one consolidation chart of accounts per consolidation area. The independent characteristic consolidation chart of accounts must be uniquely defined in the consolidation area.

In the consolidation chart of accounts, you arrange the items in item hierarchies. For example, you define a consolidation chart of accounts with one item hierarchy for balance sheet items and another item hierarchy for income statement items.

Example

Examples of consolidation charts of accounts

Legal Framework

Industry

P&L Accounting Method

Appropriation of Retained Earnings (ARE)

US GAAP

Manufacturing

Cost of Sales

ARE in Balance Sheet

EU Directives

Manufacturing

Period Accounting

ARE in Income Statement

EU Directives

Manufacturing

Period Accounting

ARE in Balance Sheet

EU Directives

Banking

ARE in Income Statement

Japanese GAAP

Manufacturing

Cost of Sales

ARE in Balance Sheet

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