Understanding Consolidation Rules

You must define the rules by which the system consolidates the account balances at your source site. For example, you might want to consolidate accounts for one business unit in one way and the same accounts for another business unit in another way. You might want to summarize different accounts to different levels of detail. Use the Consolidation Specifications program (P10470) to define consolidation rules.

Using the Consolidation Specifications program, you define each parent business unit in the consolidation by specifying a sequence level and a sequence value. The sequence level is the level within the organizational structure at which the system consolidates the account balances. For example, if you want to consolidate balances at the highest level of the organizational structure, enter a sequence level of 1.

The sequence value indicates the business unit category code at the level of the consolidation. For example, if you want to consolidate at the region level and you are defining the parent business unit in the Central region, enter the value of the category code that represents the Central region.

You can choose to work with a live business unit category code structure or a date-effective snapshot of a business unit category code structure.

You can choose not to consolidate business units. If you choose not to consolidate business units, the system sends account balances for all business units.

The Consolidation Specifications program updates the Consolidation Specifications table (F10470).