Consolidation

This section focuses on the dimension properties and relevant settings required for the various tasks that are required to successfully perform legal consolidation using SAP Business Planning and Consolidation.

The following tasks are described:

How to set up currency translations, intercompany eliminations, copy opening tasks, and other business rules using the business rules tables and script logic in Planning and Consolidation Administration
How to set up the Data Manager package required to run the legal consolidation tasks in SAP BusinessObjects Analysis, Edition for Microsoft Office

Business rules provide the mathematical foundation for SAP Business Planning and Consolidation models, allowing users to manage both management and legal consolidation reporting. This section also discusses the configuration of business rules.

The finance department of a corporation uses legal consolidation to consolidate numbers from its subsidiaries and produce consolidated financial statements of this group of legal entities at the end of a financial period.

Features

You can perform the following activities in Business Planning and Consolidation during the financial consolidation process:

Initialize opening balances at the start of a new reporting cycle
Enter amounts for each entity
Validate data
Match intercompany transactions (for example, AR/AP reconciliation)
Convert local currency data to the desired group reporting currencies
Generate all the consolidation entries for the desired groups of entities such as:
- Ultimate ownership calculation
- Elimination entries for intercompany revenue, investments, and profit in inventory
- Adjusting entries
- Reclassifications
- Minority calculations and other calculations
Make the final validation
Generate the report

Activities

To enable users to generate consolidated financial statements, you should configure the legal model, and set up the legal and statutory consolidation business rules, in order to perform the activities required in the generation of consolidated statements of a group of legal entities.

To set up your consolidation environment, you do the following:

Create the consolidation (legal) environment and set the necessary parameters; see Create an Environment.
Set up master data (dimensions); see .
Create the model; see Create or Modify the Model.
Enable business rules; see Business Rule Setting.
Update rate data and ownership data; see Execute Consolidation Task and Loading Data.
Set the work status; see Work Status Setup.
Set the journal template and validation criteria; see Journal Definition and Validation Setting.