Performing Matrix Consolidation

In the corporate close process, we've run the intercompany elimination tasks and now we can report on the results. We need reports that show the performance from a management perspective as well as from a legal perspective. For example, legal reports are by consolidation unit but management reports are by profit center or segment.

In addition, we have a business requirement to view income statement data with a consolidation view as compared to a contribution view:

• The consolidation view will show total revenue by entity along with an elimination entity (for each consolidation unit hierarchy node).
• The contribution view shows revenue net of eliminations by entity.

In the Consolidation unit consolidation and contribution view example, we're reporting on consolidation unit revenue with the contribution view and the consolidation view. The same hierarchy is being used for both views. The consolidation view dynamically determines the elimination entity based on the first common parent in the legal hierarchy.

Each view uses a different dimension:

• Contribution view uses the Consolidation Unit dimension.
• Consolidation view uses the Consolidation Unit for Elimination dimension.

In the following content, you’ll see an example of how to create multiple reports on a single set of data to answer multiple business questions.

In the Profit center - consolidation and contribution views example, we're reporting on profit center revenue with the contribution view and the consolidation view. The same hierarchy is being used for both views. The consolidation view dynamically determines the elimination entity based on the first common parent in the line-of-business hierarchy.

Each view uses a different dimension:

• Contribution view - uses the Profit Center dimension.
• Consolidation view - uses the Profit Center for Elimination dimension.

When analyzing management entity data, you can use either the Profit Center dimension for a contribution view or the Profit Center for Elimination dimension for a consolidated view. In order to do this, the relevant profit center hierarchy must be selected via the report prompts.

In addition, Segment and Partner Segment can also be used for evaluation of management consolidation data.

In the Elimination entity determination with two different hierarchies example, the consolidation view (total revenue by entity along with an elimination entity for each consolidation unit hierarchy node) is provided by using two different hierarchies:

• Legal hierarchy: Elimination entities are dynamically determined via the parent nodes in the legal hierarchy.
• Line-of-business (LOB) hierarchy: Elimination entities are dynamically determined via the parent nodes in the line-of-business hierarchy.

In summary, legal consolidation data can be evaluated with a legal-oriented consolidation unit hierarchy. An alternative hierarchy by line-of- business can also be used to provide a management perspective. In either case, the first common parent in each hierarchy will display the elimination values dynamically. And, because the calculation is on-the-fly, there’s no duplication of data.