Now that you’ve created your consolidation groups and units, you can create the ownership structure. The ownership structure for ABC Corporation is displayed in the following image:
The World consolidation group contains all five consolidation units: Germany, United States, Canada, Belgium, and France. Germany is the parent of the World group, United States is the parent of the America group, and Belgium is the parent of the Europe group.
100% of Germany is included in the World group.
100% of the United States is included in the World and America group.
35% of Canada is included in the World and America group.
100% of Belgium is included in the World and Europe group.
75% of France is included in the World and Europe group.
To set up this ownership structure, we'll follow these steps:
- Create the consolidation groups.
- Create the consolidation units.
- Assign the consolidation units to the consolidation groups.
- Import the ownership percentages.
Manage the Group Structure
Because the consolidation groups and units have already been created, now you can make your assignments.
There are two apps to manage the group structure:
- Group View: With this app, you manage the assignments of consolidation units for a specific consolidation group. In the following image, the consolidation units for the World group are displayed for 012.2022 and version U00.
- Unit View: With this app, you manage the assignments of a consolidation unit to the consolidation group(s) that it’s assigned to. In the following image, the consolidation groups for the US00 consolidation unit are displayed for 012.2022 and version U00.
Group Structure - Key Points
- Each consolidation group typically has one consolidation unit that is assigned as the parent unit. During consolidation, parent equity values remain untouched in the group since they’re investors.
- A consolidation unit can belong to multiple consolidation groups.
- Consolidation units can be assigned to consolidation groups from either of the group structure apps. Or, the assignments can be imported from files.
- In the group structure apps, a method is assigned to each consolidation unit by consolidation group.
- The predefined methods can be accessed via: Transaction code: CXEN9 Group Reporting Consolidation → Consolidation of Investments → Methods.
There’s no consistency check with transactional data. If you delete a consolidation unit that has transactional data, the status can be inconsistent. If you, for example, run the Preparations for Consolidation Group Changes task and respective documents are generated, these documents might become inconsistent or obsolete when you remove the assignment. However, they aren't deleted with the removal of an assignment.