Validation involves a formal check of the data. Different user-defined rules can be applied during these checks. Depending on the definition of the rules, either a warning or an error message is issued.

Validation is performed at three points in consolidation: first the reported financial data is checked in local currency. Then, after currency translation, the values in group currency are checked. Finally, once consolidation is complete, the consolidated values are checked. The first two validation runs are located within the data monitor, and draw their data from the consolidation units’ data. The last validation is located in the consolidation monitor, and checks the values from the groups. Different validation rules can be defined for each of the various validation tasks.

Data from this example:

Validation 01-CS01 check individual financial statements, cons chart of accounts 01

This validation checks the agreement of assets and liabilities, of the annual net income items in the balance sheet and in the income statement, and whether the annual net income in the income statement and the total of all expenses and revenues amount to zero.