Defining Required Consolidation Rules

This chapter provides an overview of required consolidation rules and discusses how to:

• Define balancing account type rules.

• Define tolerance rules.

• Define ownership rules.

• Define close process rules.

• Establish consolidation models.

Understanding Consolidation Rules

Prior to processing consolidations, you need to establish required rules that control how the processes consolidations and specify:

• The accounts to use to determine if the ledger is balanced.

• An acceptable limit for out of balance amounts and where the out of balance amounts should be posted.

• Percent ownership of subsidiaries, equitization thresholds, and accounting methods.

• Rules for closing accounts at period or year end and rolling forward balances to the next period.

These rules are then associated with the consolidation model and govern the processing of various consolidation engines. This chapter covers how to establish each of these rules, associate them with the consolidation model, and validate them.

After these required rules are established, you define additional rules that determine how the system eliminates intercompany transactions, investments in subsidiaries, and non-controlling interest.

You can also establish flows, which track account movement (data flows) from the consolidated ledger.

When put together, all these rules define a consolidation model, and specify all of the parameters that are used as input into consolidation processing.

This diagram shows the supporting data and rules that you define prior to processing consolidations:

Defining Consolidation Rules

Consolidation Rules

There are several types of consolidation rules that are associated with the consolidation model:

See Also

Defining and Managing Flows

Rules, Rule Sets, and Rule Groups

To enable you to share rules among multiple consolidation models, to facilitate using multiple scenarios, and to reduce ongoing maintenance, there is a hierarchy to many of the various rule definitions used for consolidations. At the lowest level, you define an individual rule, and then combine these rules into rule sets, and finally, one or more rule sets comprise a rule group. The rule groups are then associated with the consolidation model. Ownership rules, non-controlling interest rules, equitization rules, and elimination rules follow this hierarchy.

Hierarchy of rules, rule sets, and rule groups

When you associate a rule set with a rule group, you assign it a use order. During processing, the rule sets are processed in sequence in ascending order based on their use order. Unless otherwise specified, within each rule set, the rules are processed by ownership set and rule ID.

When you are defining a new consolidation scenario, you can share or reuse rules, rule sets, and rule groups that you've already created for a previous consolidation model, provided that their consolidation ledgers share the same ledger template and consolidation dimension. When reusing rule sets in new rule groups, you specify a different use order, or insert new rule sets to override the current use order.

Defining Balancing Account Type Rules

This section provides an overview of balancing account type rules and discusses how to establish balancing account type rules.

Understanding Balancing Account Type Rules

Balancing account type rules define which accounts within the consolidation ledger are used to determine if the ledger is balanced. When you define a balancing account type rule, you include a row for each account type that should balance. Balancing account type rules are set up differently depending on the format of the consolidation ledger template for which they will be used:

• Financial statement format ledger templates typically include only balance forward account types in the balancing account type rule.

• Trial balance format ledger templates typically include both non-balance forward and balance forward account types in the balancing account type rule.

Note. Memo accounts are not typically included in a balancing account type rule.

Page Used to Define Balancing Account Type Rules

Establishing Balancing Account Type Rules

Access the Balancing Account Type Rule page.

Account Type	Add rows within the Balancing Account Types grid for each account type that should be used to balance the consolidation ledger.
Balance Forward	Indicates whether the account type is a balance forward account. This field is display-only and unavailable for entry.

See Also

Defining Account Types, Accounts, and Account Nodes

Understanding Ledger Templates

Defining Tolerance Rules

This section provides an overview of tolerance rules and discusses how to establish tolerance rules.

Understanding Tolerance Rules

Tolerance rules define an acceptable limit or threshold for out of balance amounts for journals generated by the consolidation processes. You can assign tolerance rules to elimination rules. The system posts journals when the amount by which a journal is out of balance is less than this threshold.

You can define the tolerance threshold either as a specific amount or as a percentage of the total transaction amount of the consolidation tree node for the out of balance grouping. The percentage is calculated based on the total for the particular rule and node combination. The system creates suspense account entries to record adjustments for out of balance conditions. If the out of balance amount is less than the tolerance threshold, the journal is posted, and an out of balance adjustment is entered into a suspense account. If the out of balance amount is greater than or equal to the tolerance threshold, the system creates the journal with the out-of-balance adjustment without posting the journal. The journal can be force posted, or you can rerun the consolidation process after entering the appropriate adjustments to resolve the out-of-balance amount.

Note. No currency is specified for tolerance rules, but when amounts are processed for consolidations, they are all in the consolidation currency.

If you select the Send Tolerance Email check box on the run control request page, the system sends an email to alert a designated person about the discrepancy. Your organization can then investigate the reason for the discrepancy and determine the appropriate corrective action to take.

Note. Tolerance rules are specified for a setID.

Pages Used to Define Tolerance Rules

Establishing Tolerance Rules

Access the Tolerance Rule page.

Tolerance By	Select one of these options to specify how the system should determine the tolerance: Percentage: The system determines the tolerance by using a percentage of the total amount of the transactions. Amount: The system determines the tolerance based on an amount that you specify. The amount is calculated based on the greater of either the total debits or total credits within that elimination set, for that rule, node, and group by out of balance amount.
Percentage	Enter the tolerance threshold percentage. Only available for entry when Percentage is selected in the Tolerance By group box.
Amount	Enter the tolerance threshold amount. Only available for entry when Amount is selected in the Tolerance By group box.

Defining Ownership Rules

This section provides an overview of ownership rules and discusses how to:

• Establish ownership rules.

• Establish ownership percentage.

• Establish ownership rule sets.

• Establish ownership groups.

Understanding Ownership Rules

Ownership rules provide a basis for the equitization and non-controlling interest rules that are defined for a consolidation model. When equitization and non-controlling interest rules are processed, they use the information defined in ownership rules for part of their calculations.

Ownership Rules

Ownership rules determine the accounting methods, equitization thresholds, and ownership levels of a parent for a subsidiary based on the total and voting shares owned by the parent.

Note. Ownership rules are setup to accommodate different accounting methods. If a business unit is included in the consolidation tree and ownership rules are setup for that business unit, the business unit will be included as part of the consolidation with consolidation entries based on the ownership level.

An ownership rule defines the ownership and control relationships between a subsidiary and parent. Business consolidation rules use ownership rules to equitize changes in subsidiary equity, and to calculate the non-controlling interest elimination. Ownership does not necessarily imply control. For example, one company may own 60 percent of another subsidiary, but own only 20 percent of the controlling stock. The system uses the control percentage to determine whether or not to equitize. The system uses ownership percentage to determine all calculated amounts, including the amount to equitize, and the amount of non-controlling interest to eliminate.

Ownership rules identify:

• All of the parents within your consolidation structure that own a part of the subsidiary.

• The percentage of the subsidiary that each parent owns.

• The percentage of control that each parent exerts over the subsidiary.

• The controlling parent.

  Note. A controlling parent is required for every subsidiary for which an ownership rule is created.

  The controlling parent for a subsidiary must be specified even if that parent is not a direct owner of the subsidiary. If none of the direct owners control more than the percentage required to consolidate, the controlling parent is the business unit where the total control from the direct parents adds up to the percentage required to consolidate. If this controlling parent does not have direct control, specify zero percent as the control percentage (because the parent has indirect control). If the total control across all parents is lower than the percentage required to consolidate (for example, the subsidiary isn't even in the consolidation tree), then it really doesn't matter which parent is the controlling parent; you can specify any one.

The sum of all of the ownership percentages for a particular subsidiary-parent relationship must be less than or equal to 100. Because there may be other owners of a subsidiary that are external to your organization's consolidation structure, the total ownership and control percentages for a particular subsidiary can be less than 100.

During processing the system creates a flattened tree of the ownership structure in PS_GC_OWN_STR_TBL. The system uses this table to:

• Determine the equitizing parent during equitization processing.

• Determine to which parent to post the parent investment elimination during NCI processing.

Review this record to verify that your ownership structure is set up correctly.

Subsidiary equity is eliminated against the parent investment depending on the level of ownership.

You can run the ownership inquiry to review the ownership structure of your organization.

See Viewing Ownership Hierarchies.

Accounting Methods

Ownership rules are setup to accommodate different accounting methods. The accounting methods available in global consolidations are pooling of interests, proportionate, and purchase.

If a business unit is included in the consolidation tree and ownership rules are setup for that business unit, the business unit will be included as part of the consolidation with consolidation entries based on the ownership level. The pooling of interests method is similar to the purchase method, except that in order to use the pooling of interests method, the parents' investment in the subsidiary must be virtually all of the common stock (at least 90 percent of voting stock). The parent uses the book value of the subsidiary's assets and liabilities. Because the parent uses the subsidiary's book values, goodwill is not recorded on the parents book for this type of ownership setup.

If you use the pooling of interests method, the subsidiary must be 100 percent owned by a single parent, eliminating the need for non-controlling interest calculations, and the equitization threshold percent must be in range from 0 to 100.

If you use the proportionate method, only one parent can own a subsidiary. If the subsidiary has two parents, the subsidiary is broken down into two different subsidiaries, each proportionately owned by the respective parent.

The following table outlines the accounting methods and their impact on consolidations:

Ownership Rule Sets and Ownership Groups

Ownership rule sets are a collection of individual ownership rules. Ownership groups are a collection of ownership rule sets that you associate with a consolidation model for the consolidation business rules processing. The ownership rules, ownership rule sets, and ownership rule groups are all effective-dated allowing for changes to your organizational structure. The ownership rules enable you to specify the accounting treatment for parent/subsidiary relationships and the ownership rule sets enable you to bring together all of the various accounting treatments that the parent organization establishes for its numerous subsidiary relationships. The ownership group enables you to tie all of these relationships to the consolidation model and to determine how consolidation rule processing impacts these relationships.

On the Ownership Group page you specify the consolidation and equitization thresholds that will be used for the consolidation.

The consolidation threshold defines the percentage of ownership that requires a subsidiary to consolidate to its parent. The consolidation threshold is informational only. l.

The equitization threshold defines the threshold at which the equity method of accounting goes into effect. The equity method of accounting requires a parent to reflect its ownership percentage of the subsidiary's income in their income statement, with an offset to the investment account for the subsidiary. On the Ownership Rule page you can specify a unique equitization threshold for a subsidiary, or you can specify that the subsidiary use the equitization threshold specified on the Ownership Group page.

An ownership group is composed of one or more ownership rule sets. You associate an ownership group with a consolidation model. You assign a use order to specify the processing order of the ownership rule sets that are associated with an ownership group.

Warning! An ownership rule set can contain ownership rules with multiple subsidiary entities. It is possible for the ownership sets, made up of various ownership rules, to contain the same subsidiary entities. If this is the case, the ownership rule in the ownership set with the lowest numeric use order value is used during consolidation processing.

Pages Used to Define Ownership Rules

Establishing Ownership Rules

Access the Ownership Rule page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available.
Consolidation Dimension	Select the dimension (ChartField) by which you are consolidating, for example, Ledger Business Unit. See Understanding Business Units.
Subsidiary Entity	Select the subsidiary whose ownership relationships and percentages you are defining. The subsidiary entity identifies the value of the subsidiary, The values that you can enter depend on the Consolidation Dimension (ChartField).

Establishing the Equitization Threshold Method

Select the equitization threshold method that you want to use for the ownership rule. You can select the Use Ownership Group option which will use the threshold value that you specify on the Ownership Group page or you can select the Specify Threshold option, which enables you to specify the equitization threshold value in the Threshold Percent field.

When you run the equitization process, the system uses the selection in the Equitize Parent field on the Ownership Rule - Ownership Percentage page to determine whether to equitize changes in subsidiary equity for each parent-subsidiary relationship. When the Equitize Parent field is set to Use Threshold, the equitization threshold percent of the parent is compared to the control percentage for each subsidiary-parent relationship.

When the control percentage is greater than or equal to the equitization threshold percent, changes in subsidiary equity (for example, net income) are equitized, using the ownership percentage to determine the amount for each subsidiary-parent relationship.

The equitization threshold percentage can be specified both on the Ownership Rules page and on the Ownership Group page. The threshold value entered on the Ownership Group page applies to all entities within the Ownership Group being processed, but you can override it at the main parent level on the Ownership Rules page; the threshold for the ultimate parent is the same as the amount specified for the ownership group associated with the consolidation model.

Indicate whether to use the threshold specified for the ownership group, or to enter a threshold for that subsidiary by selecting one of these equitization threshold methods:

Note. To specify a threshold for a specific parent, select the Specify Threshold method, and then enter the amount in the Equitization Threshold Percent field on the Ownership Rule page where that parent is itself a subsidiary.

Accounting Method

Select the accounting method that you want to use for the ownership rule. You can select one of three options. Pooling, Proportionate, or Purchase.

The method that you select impacts the field edits on the Ownership Percentage page. For example, if you select Pooling, the Subsidiary Entity must be 100 percent owned by a single parent, the Equitization Threshold Percent must range from 0 to 100, and the option to calculate/specify the ownership is not available on ownership percentage page of the ownership rule.

Establishing Ownership Percentage

Access the Ownership Rule - Ownership Percentage page.

Add a row for each parent in the Specify Parents grid, and complete these fields:

Subsidiary Entity Shares

The values you enter in this section determine the ownership level and controlling interest of the parent for the subsidiary.

Specify Parents

The values you enter in this section determine the ownership level and the controlling interest of the parent for the subsidiary.

Note. The formula used to calculate Control Percentage = Voting shares of the parent/Total voting shares of subsidiary * 100 %.

The formula used to calculate Ownership Percentage = Total shares of the parent/Total shares of subsidiary * 100 %.

Establishing Ownership Rule Sets

Access the Ownership Rule Set page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available. See Understanding Ledger Templates.
Consolidation Dimension	Select the dimension (ChartField) by which you are consolidating. For example, Ledger Business Unit. See Understanding Business Units.

Add Ownership Rules

You can optionally populate the Ownership Rules grid with subsidiary entities by either using a tree and optionally specifying a node, or by using a wildcard search to select the values. You can use one option or the other but not in combination with each other.

All business units or departments in a specified tree name are added to the Ownership Rules grid unless you specify a tree node.

Similarly, if you use the wildcard search mode and click Add Department or in the case of a ledger business unit tree Add Ledger Business Unit, the systems adds all business units whose name matches the pattern specified are added to the Ownership Rules grid.

Using the methods in the Add Ownership Rules section to populate the Ownership Rules grid is optional. You can add business units or departments individually to the grid.

Ownership Rules

Add a row for each subsidiary entity in the Ownership Rules grid that you want to include in the ownership rule set and complete these fields:

Establishing Ownership Groups

Access the Ownership Group page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available. See Understanding Ledger Templates.
Consolidation Dimension	Select the dimension (ChartField) by which you are consolidating. For example, Ledger Business Unit. See Understanding Business Units.
Consolidation Threshold	Enter the consolidation threshold percent amount that you want to apply to the ownership group. This is used for informational purposes only. The consolidation threshold defines the ownership percentage threshold at which a subsidiary is required to consolidate with its parent.
Equitization Threshold	Enter the equitization threshold percent amount that you want to apply to the ownership group. The equitization threshold defines the threshold at which the equity method of accounting goes into effect. The equity method of accounting requires a parent to reflect its ownership percentage of the subsidiary's income in their income statement with an offset to the investment account for the subsidiary. If an ownership rule for a subsidiary entity specifies a equitaztion threshold amount, that value is used instead of the value specified on the ownership group page.
Create Ownership rule set	Click to create a new ownership rule set.

Ownership Rule Set

In the Ownership rule set grid, add a row for each ownership rule set that you want to include in the ownership group, and complete these fields:

Defining Close Process Rules

This section provides an overview of close process rules and discusses how to:

• Establish close rules.

• Establish roll forward rules.

• Establish closing sets.

• Establish roll forward rule sets.

• Establish close process groups.

Understanding Close Process Rules

The closing process closes accounts and rolls their balances forward.

The close process uses the following rules:

• Close rules are used to close the account balance to a different target account.

  Some examples include: closing net income into retained earnings, closing a year-to-date account into an inception-to-date account.

• Roll forward rules are used to roll forward the account balances to the next period or year without changing any dimension values.

Similar to the way in which other consolidation rules are established, you define the individual rules, combine the rules into rules sets, and then define a group, which comprises one or more rule sets. You then associate the group with the consolidation model. In the case of close processing, the consolidation model uses the close process group to specify which ChartField values are involved in the close process.

If you are using flows, please note that close processing does not generate flow activity. The necessary flow amounts need to be entered manually using the journal flow input template. System-generated entries in elimination units that are either closed or rolled forward in trial balance modes should be placed onto manual flow templates—even if there is only one flow code needed—rather than on a system template.

Consolidation Ledger Format

When running the close process, you either run year-end or period-end processing, depending on the format of the consolidation ledger. Trial balance consolidation ledgers use year-end processing, whereas financial statement consolidation ledgers use period-end processing. Consequently, the consolidation ledger format determines how you set up the rules for close processing.

• For trial balance-based consolidations, close processing is run at year-end only.

  Balances are closed and rolled forward to the next year as period zero.

• For financial statement-based consolidations, close processing is run at each period-end.

  Balances are rolled forward to the next period. When processing the last period of the year, balances are closed and rolled forward to the first period of the next year.

Note. The ledger format option is established on the Ledger Template- Consolidation Variables page (either trial balance or financial statement). The ledger format determines which fields are available for entry in the close rule process pages.

This table summarizes the setup required depending on the consolidation ledger format:

Source Values Related to Close

Ledger entries that the system generates when you run the close process are identified by the GC_SOURCE field values of 9A, 9B, 9C, or 9D.

The following table describes these GC_SOURCE field values:

See Global Consolidations Sources.

Rolling Forward Elimination Entities

For the Trial Balance ledger format, when processing eliminations for period 1, both the period 0 (beginning) balance and the period 1 activity are eliminated with a single entry booked to period 1. The end result is that everything is properly eliminated when looking at consolidated period 1 balances. But, when examining just the activity/flow for period 1, the consolidated amounts do not net to zero.

Consider the following example, where a pair of business units has a 1,000 EUR intercompany payable/receivable balance at year end, and an additional intercompany activity of 500 EUR in period 1 of the next year.

Note. GC Source codes are listed next to each number: 01 = Source Ledger, 04 = InterCo Elims, 9x = Close processing.

See Global Consolidations Sources.

This is what the ledger looks like if the elimination entries are NOT rolled forward:

Note that the total nets to zero when viewed as a year-to-date balance, but the period 1 activity does not net to zero.

This example displays the ledger with elimination entries that are rolled forward:

Both the year-to-date and period 1 activity amounts are completely eliminated.

Steps for Setting Up and Processing Closing and Roll Forward Rules

The steps for setting up and viewing close process rules:

1. Define close rules.

2. Assign close rules to close rule sets.

3. Set up roll forward rules.

4. Assign roll forward rules to roll forward sets.

5. Assign close rule sets and roll forward rule sets (tied to a consolidation dimension, such as ledger business unit) to a close process group.

6. Assign the close process group to a consolidation model.

7. Run the close process application engine.

   • Year end processing (trial balance based consolidations).

   • Period end processing (financial statement based consolidations).

   • Period locking available from the run control page.

8. Review the close process status with the consolidation manager.

9. Review close amounts and roll forward balances with reports.

See Also

Understanding Ledger Templates

Understanding Ledgers

Managing Consolidation Processing

Pages Used to Define Close Process Rules

Establishing Close Rules

Access the Close Rule page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available. See Understanding Ledger Templates.
Consolidation Dimension	Select the dimension by which you are consolidating, for example, Ledger Business Unit.

Close Rule Input

Close Rule Source Input

The Close Rule Source Input grid is active if you select to Specify Source Process Value as your source process option.

You can identify the consolidation source processes (data sources) that you want to use as input for the closing process rule setup. Add a row for each source process you want to add as input for the close rule. For example, you may want to specify Manual Entry as a source process to include as input for any manual journal entries you want to capture in your closing rule.

See Global Consolidations Sources.

Close Rule Input

Define the set of accounts to close by specifying one or more ChartField Value Sets from the prompt table. Typically, the ChartField value sets you select are based on income statement accounts because this is a close rule. However, the close rule can also be used for balance sheet accounts, such as closing a year-to-date account into an inception-to-date account.

If the ChartField value set you want is not available from the prompt table, click the Create ChartField Value Set link to access the ChartField Value Setup page and create the ChartField value set you require for your close rule setup.

See Defining ChartField Value Sets.

Close Rule Output

The Close Rule Output grid defines which specific dimensions (ChartFields) will receive the closed amounts. Specify the field names (ChartField values), the output options, and the value for the selected field names (ChartField values). Insert a row for each ChartField value that you want include in your rule; Account is required.

Click Get ChartFields to populate the Close Rule Output grid with all of the valid ChartField values.

Establishing Close Rule Sets

Access the Close Rule Set page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available. See Understanding Ledger Templates.
Consolidation Dimension	Select the dimension by which you are consolidating, for example, Ledger Business Unit.

Rules

Use the Rules grid to assign close rules to the closing set and specify their processing order.

Establishing Roll Forward Rules

Access the Roll Forward Rule page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available. See Understanding Ledger Templates.
Consolidation Dimension	Select the dimension by which you are consolidating, for example, Ledger Business Unit.

Roll Forward Rule Input

Specify the global consolidations source data processes and ChartField Value sets to be included in the roll forward rule process.

Specify the source processes you want to include for the rule in the Roll Forward Rule Source Input grid if you use the Specify Source Process Value option.

Roll Forward Rule Source Input

The Roll Forward Rule Source Input grid is active if you select Specify Source Process Value as your source process option.

You can identify the source processes you want to use as input for the roll forward process rule setup. Add a row for each source process you want to add as input for the roll forward rule. For example, you may want to specify Manual Entry as a source process to include as input for any manual journal entries you want to capture in your roll forward rule.

Roll Forward Rule Input

Define the set of accounts to use as input for the roll process rule by specifying one or more ChartField Value Sets from the prompt table. Typically, the ChartField value sets you select are based on income statement accounts because this is a part of the closing process.

If the ChartField value set you want is not available from the prompt table, click the Create ChartField Value Set link to access the ChartField Value Setup page and create the ChartField value set you require for your close rule setup. Alternatively, you can click the Description link to edit or view the existing ChartField value set.

Establishing Roll Forward Rule Sets

Access the Roll Forward Rule Set page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available. See Understanding Ledger Templates.
Consolidation Dimension	Select the dimension by which you are consolidating, for example, Ledger Business Unit. See Understanding Business Units.

Roll Forward Rules

Use the Roll Forward Rules grid to assign your roll forward rules to the roll forward rule set.

Establishing Close Process Groups

Access the Close Process Group page.

Ledger Template	Select the ledger template structure. This must be the same template used for your consolidation ledger. This value controls which ChartFields are available. See Understanding Ledger Templates.
Consolidation Dimension	Select the dimension by which you are consolidating, for example, Ledger Business Unit.
Consolidation Tree	Select a consolidation tree for the close group.

Close Process Rules

Use the Close Process Rule grid to assign close rule sets and roll forward rule sets to a consolidation tree node and to specify the order in which the nodes should be processed. Insert rows if you need to include multiple tree nodes and their close rule sets and/or roll forward rules. The close process group is assigned to the consolidation model.

Note. If the close rule set or roll forward rule set is left blank, then no rules are assigned to that tree node. The system has edits in place to prevent a close rule set from being input without specifying a roll forward rule set. A roll forward rule set can stand alone, but a close rule set cannot.

Set Details

Select the Set Details tab to view and edit the selected close rule and roll forward rule sets.

Establishing Consolidation Models

This section discusses how to define consolidation models.

The consolidation model defines the rules you use for processing a consolidation.

Processing Tiered Consolidations

In large multi-national organizations, the consolidation process is often staggered. For example APAC and EMEA may complete their consolidations at different times. If you specify tiered consolidations, as you gather the final numbers from subsidiaries, you can run consolidations at any level of the consolidation tree.

To run tiered consolidations, you must specify which nodes on the consolidation tree can be run independently of other nodes on the Specify Tiered Consolidations page. After you specify tiered consolidations, you must validate the consolidation model, to be sure that there are no dependencies.

See Validating the Consolidation Setup.

After the nodes and order are established, you can then run a consolidation process using any node that you previously specified. An example of processing eliminations using nodes follows:

Processing eliminations for the EMEA tree node

When consolidation processing is completed for a tree node, you can lock the scenario and specify the tree node so that no further processing can occur for the node.

Note. If the user decides to run the consolidation engines at a higher level node, the system reprocesses the lower level nodes even if the lower level nodes are locked. (Locking does not affect the user’s ability to run the elimination and equitization engines.) For example, the user could run the consolidation engines for lower level nodes, but once the engines are run at a higher-level node, the consolidation entries that were previously run will be unposted and the lower level nodes will be reprocessed. A run difference analysis is available to let the user confirm that running at the higher level did not have any net effect on the lower levels.

If any particular subsidiaries parents are found occur in multiple tree nodes, you cannot use tiered consolidations.

See Locking Scenarios.

Pages Used to Establish Consolidation Models

Defining Consolidation Models

Access the Consolidation Model page.

Complete these fields to define your consolidation model:

Specifying Tiered Consolidations

Access the Specify Tiered Consolidations page.

In the Order field, specify the order in which you expect to process the tree nodes. This field is informational only. In the Tree Node field, select nodes from the consolidation tree that can be processed separately.

After you have selected nodes and saved the consolidation model, validate the model to make sure that there are no dependencies between the nodes that you selected.

See Also

Validating the Consolidation Setup