Proportional Consolidation (SAP Library

Proportional Consolidation

In Subgroup Maintenance, a proportional consolidation method is assigned to companies that are included proportionately in the consolidated financial statements . The proportion is also entered.

Consolidation entries and group reports are based on proportional values. The apportionment of the companies’ values depends on which currencies are used for the individual FS data (see also Individual FS Data in Local or Group Currency):

If the data is entered in local currency, the apportionment is run in conjunction with currency translation. This means that currency translation must be run even if the local currency is equivalent to the group currency.

In local currency groups, consolidation and group reporting is based on local currency values. Therefore, individual FS data should be apportioned in local currency for proportional companies.

Instead of using a local currency group, you are recommended to open a new ledger, in which the ledger currency concurs with the group currency. Then the actions correspond with those above.

If the data is entered in group currency, it must be apportioned for proportional companies.

The standardizing entries for proportional companies are processed according to how the individual FS data is entered.

If proportional company is included for consolidation in multiple subgroups, please note the following: Within one consolidation version the proportion must be identical in the various subgroups, since the journal entry records and totals records are stored by consolidation version. You must use a different consolidation version, if a company is included in various subgroups with different proportions.

If the reference exchange rate indicator * is used when running currency translation for proportionally-consolidated companies, please note that translation must be run for all periods in which values exist in the totals table. If, say, the data is transferred periodically but the consolidation is performed only once a year, you must still perform currency translation periodically for the proportionally-consolidated company.

The same applies to companies where the reference exchange rate indicator * is not specified and the following conditions apply:

Translation is performed using currency translation key 5 .

The local currency does not equal the group currency.