Consolidation is the process of gathering data from dependent entities and aggregating the data to parent entities. After you enter or load data into base-level entities, calculate and adjust data, you run a consolidation for a selected Scenario and Period to aggregate the data throughout the organization. As data consolidates, the system performs the necessary currency translation and intercompany eliminations, and equity adjustments or minority ownership calculations if needed.
Financial Management provides a default consolidation method. To enable statutory consolidations, you can customize the consolidation process. When you create an application, you can set the Consolidation Rules attribute. By default, when this setting is not enabled, the system performs the default consolidation and eliminations. When this setting is enabled, the system performs consolidation according to the rules written in the Sub Consolidate() routine, as defined by the administrator. See the Oracle Hyperion Financial Management Administrator's Guide.
You launch the consolidation process from data grids. Launching consolidation runs the consolidation rules for the specified scenario, year, period, entity, and value. As part of that process, consolidation is run for all descendent entities and all prior time periods within the same year. The consolidation process runs all Calculate functions for each affected entity and value. The translation process is run as required to convert data from the child entity currency to the parent entity currency. If the child and parent entity use the same currency, the translation process is not run.
After you select the parent entity into which the dependent entities consolidate, processes that are required run automatically.
The system runs calculation rules for all descendants of the entity.
If the data for the child entity and the data for the parent entity are in different currencies, the system translates data based on the exchange rate. For the child entity, the translated value is stored in the Parent Currency member of the Value dimension. The translated value in Parent Currency is rolled up to the parent.
The consolidation process begins. If the parent's ownership of the child is less than 100%, the ownership percentage is applied. The system generates proportion and elimination detail, and creates contribution data. You can make further adjustments to contribution data through journals.
At the entity level of the consolidation process, you enter data in input accounts and enter adjustments through journals in the entity currency. The system runs calculation rules at the entity level, resulting in adjusted data for the entity.
Following are examples of the consolidation process.
The first example shows the process when the entity currency and the parent currency are different.
The following example shows the process when the entity currency and the parent currency are the same.
