Rolling Up Consolidations

The full consolidation method adds output values from business units to produce output values in the consolidated parent. Consolidator calculates each file before adding the values to the consolidated parent. Input values in the consolidated parent is calculated based on output values from the child entities and the forecast method selected in the consolidated parent. For example, if you consolidate two business units containing forecast data in Table 3, Sample roll-up for Sales, if each unit's previous period sales was $100:

Table 3. Sample roll-up

Business Unit

Input

Output

Forecast Method

Business Unit #1

10%

$110

Growth Rate

Business Unit #2

$125

$125

As Actual Value

Consolidated Parent

0

$0

Growth Rate

After consolidating, the Sales account in the consolidated parent reflect the growth rate necessary to achieve the sales total of the two business units combined. In this example, you need a growth rate of 17.5%to achieve the additive sales value of $235.

 

Input

Output

Forecast Method

Consolidated Parent

17.5

$235

Growth Rate

Most consolidated accounts are calculated like this. There may be occasions when the additive process does not apply. For example, User Defined Accounts are typically used for non-currency items such as inflation rates and price/quantity relationships—the additive consolidation process would yield meaningless results. Such accounts are candidates for blocking, so you can manually enter data in the consolidated parent—see Excluding Entities from Consolidations.

There may be accounts in the child entities that should not be included in the consolidated parent. To eliminate an account completely, you include it in an elimination group

See Specifying Parent Entity Characteristics.