Defining Consolidation Scopes With Trees

Because you likely have several consolidation configurations to accommodate management and statutory requirements, General Ledger enables you to set up any number of consolidation trees. Consolidated business entities appear as nodes, and business units and eliminations units appear as detail values on the tree.

For example, World Wide Consolidation comprises 22 business units in Europe, Asia Pacific, and North America. For financial reporting requirements, the company created a tree that defines the legal entity relationships among these business units, as well as those located elsewhere (Tree Manager, Tree Manager).

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

The World Wide Consolidation node (WW_Consolidation) represents the final point of consolidation and the relationship among consolidated entities—Europe, ASIA/PAC, and NORTH_AMERICA and the corporate level elimination unit, ELIM1.