One of the first steps in the consolidation process is to define the structure of the group being consolidated in the SAP S/4HANA system. This includes the consolidation units and the groups they are assigned to.
One of the first steps in the consolidation process is to define the structure of the group being consolidated in the SAP S/4HANA system. This includes the consolidation units and the groups they are assigned to.
Consolidation Units
Consolidation units such as Canada, United States, Germany, France, or Belgium represent legal subsidiaries in the group structure.
- Consolidation units that are in the universal journal are described as being integrated or SAP S/4HANA companies.
- Consolidation units that are not in the universal journal are non-integrated or spreadsheet companies.
Consolidation Group
A consolidation group is a user-defined group of consolidation units created for consolidation.
A consolidation group is required to prepare consolidation financial statements.
There are three consolidation groups in the example:
- World, all five consolidation units are included.
- North America, there are two consolidation units: Canada and the United States.
- Rest of Europe, there are two consolidation units: Belgium and France.