Overview (SAP Library - Consolidation (FI-LC))

Overview

You can perform the actual consolidation after you have transferred individual financial statement data into the consolidation system, and carried out any necessary standardizing entries and translation of values. The actual consolidation consists of the following activities:

Elimination of intercompany payables and receivables

Elimination of IC expense and revenue

Elimination of income from investments

Elimination of intercompany profit/loss in inventory

Elimination of intercompany profit/loss in transferred assets

Reclassification

Consolidation of investments

You can perform the consolidation of a multi-level group in two forms. It can be carried out in the form of a simultaneous consolidation, as well as a step consolidation. For a comprehensive comparison of these two types of consolidation, see the topic Subgroups. The explanations that follow are related solely to the use of simultaneous consolidation. The additional steps you need to follow for step consolidation are outlined in the topic Step Consolidation.