Consolidation Unit 

Definition

The smallest element in a corporate structure that is used as a basis for consolidation.

Use

You can use the characteristic role consolidation unit for the characteristics company, profit center, business area, plant, and so forth.

Internal accounting transactions that are to be eliminated by consolidation are processed between the consolidation units. In an accounting transaction, a consolidation unit can be the triggering consolidation unit or the partner unit.

Structure

A Data Basis can have one or two characteristics with the role consolidation unit.

To portray a matrix organization in the consolidation system (for example, with companies and profit centers), you define two characteristics with the role consolidation unit. Then, for example, both the characteristic company and the characteristic profit center are assigned to the role consolidation unit.

When assigning the role consolidation unit to several characteristics within a single consolidation area, make sure that all of these characteristics have been created with reference to the same basic characteristic (reference characteristic or template).

More Characteristics with the Role Consolidation Unit

If you want to use more characteristics with the role consolidation unit, then, in customizing of the data basis, you must define which consolidation unit is currency bearing (that is, determines the local currency).

The currency-bearing (or primary) consolidation unit and the other consolidation units are distinguished as follows:

Property	Currency-Bearing Characteristic with the Role Consolidation Unit	Non-Currency-Bearing Characteristic with the Role Consolidation Unit
The role is not dependent on versions and timeframes.	X	X
The characteristic always carries a value in the transaction data (the value is never initialized).	X	X
The characteristic determines the local currency (it is currency bearing).	X
Methods for currency translation are assigned to the characteristic.	optional (recommended)	optional
The characteristic is status relevant.	X	X
The total of all balance sheet and income statement items must be equal to zero.	X	X
The characteristic has a subassignment for partner units.	X	X
Transaction data can be summarized for this characteristic – totaled values are useful.	X	X

For each consolidation unit characteristic there is a consolidation group characteristic – see example:

Characteristic for Consolidation Unit	Characteristic for Consolidation Group
Company	Subgroup
Profit Center	Profit Center Group

Furthermore, the following characteristics must exist for each characteristic with the role consolidation unit:

·       Partner unit

·       Investee unit (if you are using consolidation of investments)

You can create a hierarchy of consolidation units for the characteristic with the role consolidation unit.

If you assign the consolidation unit role to the characteristics company and profit center, you need to define which profit center belongs to which company in Customizing by choosing Master Data ® Consolidation Units ® Combinations of Consolidation Units. Several alternative tools exist in the workbench to help you assign profit centers to companies. The scope of functions is the same so that you can use the tool that best corresponds to your way of working:

·       Table Display: The assignments between the characteristics take place in the table; each existing assignment forms a data set which is displayed in a separate row. The most important additional attributes of the assignment are also displayed for each row.

·       Two-Tree-Display: The values of the characteristics are displayed in a hierarchical structure which also visualizes the characteristic hierarchies that exist in the system. Assignments between the characteristic values are displayed as arrows which refer from one structure to the characteristic values of the other structure.

The two-tree-display is only available in the SAP GUI.

·       Matrix Display: The characteristic values are displayed as matrixes (characteristic 1 in the rows, characteristic 2 in the columns). You make the assignment between the characteristic values by setting an indicator at the intersection point of the appropriate column/row.

You can only use the matrix display if the characteristic displayed in the column has no more than 250 characteristic values.

You can enter additional information for each assignment of characteristic values. This includes:

·       First consolidation at end of period or divestiture accounting at beginning of period

·       Period and fiscal year of first consolidation and divestiture accounting

·       Validity period of assignment

Proceed as follows to access these settings in the different views:

·       Table display and two-tree-display: Double-click on a row or on an assignment arrow

·       Matrix display: Call up the context menu at the intersection point of the row and column which are assigned to each other

Note that not only the characteristics that you use as the consolidation unit, but also the assignments between the characteristic values of these characteristics have master data character. This means that you cannot undo this assignment once the system contains transaction data, which was posted with reference to one (or both) consolidation unit that is linked by an assignment, exists in the system.

Additional Information about Consolidation Units

You can enter additional information when creating a consolidation unit:

·       Business partner information

You can enter Business Partner Data such as the name of the legal entity, address data, and communication data. You can do this on the Business Partner tab page.

·       Custom attribute information

If you defined Custom Attributes, you can enter custom attribute information for each consolidation unit. You can do this on the Other Attributes tab page.