Establishing Consolidation Models

This section discusses how to define consolidation models.

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

Pages Used to Establish Consolidation Models

Page Name	Definition Name	Navigation	Usage
Model Definition	PF_MODEL_TBL1	select EPM Foundation, then select Business Metadata, then select Business Framework, then select Models	Create a model definition. You must create a model before you can use it as a consolidation model.
Consolidation Model	GC_MODEL_DEFN	select Global Consolidations, then select Define Consolidations, then select Common Definitions, then select Consolidation Model, then select Model	Define a consolidation model, which associates the rules that control consolidation processing to a common consolidation business unit.
Consolidation Model - Notes	GC_MODEL_NOTES	select Global Consolidations, then select Define Consolidations, then select Common Definitions, then select Consolidation Model, then select Notes	Enter notes about the consolidation model.
Specify Tiered Consolidations	GC_MODEL_NODES	select Global Consolidations, then select Define Consolidations, then select Common Definitions, then select Consolidation Model, then select Specify Tiered Consolidations	Select individual consolidation tree nodes that can be selected when running consolidation processes.

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:

Image: Processing eliminations for the EMEA tree node

This example illustrates the fields and controls on the Processing eliminations for the EMEA tree node. You can find definitions for the fields and controls later on this page.

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.

Consolidation Model Page

Use the Consolidation Model page (GC_MODEL_DEFN) to define a consolidation model, which associates the rules that control consolidation processing to a common consolidation business unit.

Navigation

select Global Consolidations, then select Define Consolidations, then select Common Definitions, then select Consolidation Model, then select Model

Image: Consolidation Model page

This example illustrates the fields and controls on the Consolidation Model page. You can find definitions for the fields and controls later on this page.

Complete these fields to define your consolidation model:

Base Currency

Select the currency used for the consolidation.

Consolidation Ledger

Select the ledger record in which to record the consolidation activity.

The ledger that you select must be defined by using the Ledger Template page with the EPM Ledger Type field set to Consolidation Ledger.

See Understanding Ledger Templates.

Consolidation Dimension

Select the dimension by which you are consolidating, for example, Ledger Business Unit.

See Understanding Business Units.

Consolidation Tree

Select the tree that includes the entities that you are consolidating, and the elimination entity for each node.

Consolidation Node

Select the top node level of the tree on which to consolidate.

You can select any node within the tree; this enables you to use the same tree for multiple consolidation scenarios.

Specify Tiered Consolidations

Click to specify which tree nodes will be used in a tiered consolidation.

Preparation Tree

Select the ledger preparation tree to use for preparing the source ledgers for consolidations. Typically, this will be the same tree used for consolidations if the consolidation dimension is Ledger Business Unit.

This field is required only when the Consolidation Dimension field is not set to Ledger Business Unit.

Preparation Tree Node

Select the top level of the ledger preparation tree to use for preparing the source ledgers for consolidations.

This field is required only when the Consolidation Dimension field is not set to Ledger Business Unit.

Balancing Account Type Rule

Select the rule that specifies which account types must be balanced.

Specifies those account types that are to be used to balance a ledger.

Preparation Group

Select a ledger preparation group identifying a group of rules to prepare data for consolidations.

Currency Group

Select a currency conversion rule group comprising a group of rules to prepare data for consolidations.

Elimination Group

Select the group used to eliminate intercompany transactions.

Non-Controlling Interest Group

Select the group that contains the rules used to eliminate parent investment and subsidiary equity amounts, and generate non-controlling interest adjustments.

Equitization Group

Select the group that contains the rules used to record current year changes in a parent's investment in subsidiaries based on the changes in subsidiary equity, and create related eliminations.

Publish Rule

Select the rule that defines which journals are published.

Close Process Group

Select a close group comprising the close rule sets and roll forward rules comprising the close group for preparing data for Year End processing in Global Consolidations.

Ownership Group

Select an ownership group comprising the ownership rule sets and consolidation and equitization threshold levels for consolidations.

Flow Group

Select a flow group comprising manual and system flow input templates for consolidations.

Edit, View, and Create

Click these links to access the related page in edit, view, or add mode.

Specify Tiered Consolidations Page

Use the Specify Tiered Consolidations page (GC_MODEL_NODES) to select individual consolidation tree nodes that can be selected when running consolidation processes.

Navigation

select Global Consolidations, then select Define Consolidations, then select Common Definitions, then select Consolidation Model, then select Specify Tiered Consolidations

Image: Specify Tiered Consolidations page

This example illustrates the fields and controls on the Specify Tiered Consolidations page. You can find definitions for the fields and controls later on this 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.