Describing Consolidation Tasks

A complete consolidation process typically starts with preparatory steps like:

• setting global parameters
• checking the master data of the organizational units and FS items
• specifying the effective exchange rates.
• executing the Balance Carryforward in the first period of a year.

The next step is to collect data reported by consolidation units and standardize the data with features available in the Data Monitor.

When the data is ready for consolidation, all kinds of consolidation tasks like interunit eliminations and Consolidation of investments are performed in the Consolidation Monitor.

Throughout the process, data validations and different analysis reports will be executed.

You use the data monitor to run the activities for collecting and preparing the financial data reported by the consolidation unit. These activities are called tasks.

The tasks of the data monitor are predefined and ready to use. The system manages the status of the tasks, and thus, ensures a logical sequence and consistent data.

Pulls the balances of your balance sheet FS items as opening balances from the previous fiscal year to the current fiscal year.

Copies the reported financial data from the universal journal to the consolidation journal.

Uploads the reported financial data that is stored somewhere other than the universal journal into the group journal. API stands for Advanced Programming Interface. GRDC stands for SAP S/4 HANA Finance for group reporting Data Collection.

Checks if errors exist in universal journals in the form of missing or incorrect subassignments for FS items.

Reported financial data is usually collected with an initial and corresponding imbalance in both financial statements (balance sheet, P&L).

Running the task, the system posts the annual net income which ensures that the two statements (balance sheet and P&L) balance again. LC stands for local currency.

Validates the reported financial data in the local currency according to the validation method assigned to the consolidation unit.

Example: The net income calculated in the profit/loss (P&L) statement must equal the net income in the equity of the balance sheet.

Validates the adjusted financial data in group currency according to the validation method assigned to the consolidation unit. GC stands for group currency.

Create manual postings to adjust the reported data of consolidation units to the requirements of the group. PL stands for posting level.

Translates the currency of financial statements from the local currency (LC) into the group currency (GC) so that the financial statements from local companies can be included in group consolidation.

After you run a task, you can block the task if no errors are displayed and the preceding tasks are also blocked. This allows you to track your progress and monitor the status of tasks in the consolidation process.

IC Elim Sales (one-sided elimination)

Eliminates the sales between units in the consolidation group if goods or services transactions take place between consolidation units. A pre-delivered reclassification method is assigned to this task which executes a one-sided elimination (the elimination is triggered by the selling partner).

IC Elim Other Income/Expense (two-sided elimination)

Eliminates other income and expenses in the Profit and Loss (P&L) statement. A pre-delivered reclassification method is assigned to this task which executes a two-sided elimination in which the reported interunit expense and income trigger the elimination.

Dividends Elimination

Eliminates intercompany dividends for the distributing investee unit and the receiving consolidation units including minority interests.

IC Elim Balance Sheet

This task performs the balance sheet elimination of internal transactions between consolidation units within the same group.

Manual Eliminations (posting level 20)

This task allows you to perform two-sided eliminations manually for pairs of consolidation units.

Preparation Cons Group Change

Adjust reported, standardized, and eliminated data when a consolidation unit is acquired by or divested from a consolidation group. After execution the financial statements contain only the data that arose during the time the consolidation unit was part of the consolidation group.

Enter Group Shares (posting level 30)

Use this task to enter group shares.

Investments/Equity elimin./Cons. Of Invest. (depending on the setup of the monitor):

• This task books entries associated with the purchase and/or at-equity methods
• Task 2100 runs therule-based consolidation of investments
• Task 2101 runs the activity-based consolidation of investments.

• Activity-based COI
  • Requires task 2101 Activity Based COI
  • Can use task 2141 to post group shares to statistical FS items (optional but can be used for reporting)

• Rule-based COI

  • Requires task 2100 Investment / Equity elimin. (incl. Non Controlling Interest, NCI, dividends, change in equity, change in ownership %)

  • Enter group shares with task 2140 -Calculate group shares with task 2141

Use this task to manually post group-dependent eliminations for posting level 30 and the selected document type. Within one consolidation version customers can use the consolidation monitor either for both rule-based or activity-based consolidation of investments.

Perform final validation checks on consolidated data of consolidation groups in group currency and quantity-type data as specified in the relevant validation rules.

This task is run when an investee completely leaves the consolidation group. All the data that was previously posted in the consolidation of investments for the divested investee is reversed.