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.

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

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.

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