Periodicity 

Use

In Consolidation, you can create consolidated financial statements periodically.

Prerequisites

In the consolidation area, you have specified a single fiscal year variant.

The fiscal year variant links the calendar year with the fiscal year. It defines how many periods and special periods a fiscal year comprises. For each calendar time period, the fiscal year variant also assigns the accounting periods in which the system normally posts journal entries.

Features

Dealing with Mismatching Fiscal Year Variants

Each subsidiary decides which fiscal year variant it wants to use. Consolidation is confronted with the problem of how to consolidate companies that use different fiscal year variants. The system approaches this problem as follows:

The fiscal year variant that is most decisive for consolidation is stored in the consolidation area as a field with the role Fixed in the Consolidation Area. This particular fiscal year variant cannot be changed afterwards.

Furthermore, you can specify a fiscal year variant for each consolidation unit. This fiscal year variant is used for storing reported financial data in local currency when such data is collected or entered manually. The fiscal year variant of the consolidation unit is stored in conjunction with the data collection version.

When determining the exchange rate in currency translation, the system uses the fiscal year variant of the consolidation unit to obtain the date from the fiscal year/period field. If no fiscal year variant is specified for a consolidation unit, the system uses the fiscal year variant stored for the consolidation area.

Except for currency translation, all other consolidation functions use the fiscal year variant that is stored for the consolidation area.

Miscellaneous

All other details relating to the periodicity of financial statements are defined by

·       The consolidation frequency

·       The period category