When creating subgroups for step consolidation it is important to note the following restriction: subgroups may consist either of "normal" companies only or of roll-up companies only. However, subgroups at higher hierarchy levels often consist of individual companies and subgroups from the lower hierarchy levels, represented by roll-up companies. To ensure that you comply with this restriction, you should note the following steps:

• For the lowest hierarchy level, subgroups are created from "normal" companies.

• At higher hierarchy levels with heterogeneous subgroups, you first create a subgroup (consisting of only this company) for each individual company. You then assign a roll-up company to this subgroup. Afterwards, you can create a subgroup, which consists solely of roll-up companies.

The following overviews show an example of how to create subgroups:

1. Create subgroups and assign roll-up companies
2. Carry out consolidations:

• Level I: Consolidation of subgroup SGF

• Level II: Consolidation of subgroups SGB and SGC

• Level III: Consolidation of subgroup SGA