1. Administering Financial Consolidation and Close
  2. Working with Dimensions
  3. Dimensions Overview
  4. Consolidation

Consolidation

The Consolidation dimension enables you to report on the details used to perform the different stages of the consolidation process. It provides an audit trail of the transactions applied to data during the consolidation process. It shows the consolidation path for an entity reporting to its parent, from Entity Input to Contribution.

When you create an application, the system creates the Consolidation dimension with the following hierarchy:

  • Entity Input—This member represents input data and non-consolidation -related business logic (for example, member formulas).

  • Entity Consolidation—This is only available for a Parent entity. The amount in this member represents the total of the Contribution from each of its child entities. This is a system-calculated amount as a result of the consolidation process.

  • Entity Proportion Adjustment— This is only available for a Parent entity. Entity Proportion Adjustment entries are generated by the system if the aggregated Entity Consolidation data requires adjustment. This could occur if the cumulative consolidation % of a source level 0 entity increases due to the merging of shared instances of the entity. Equity consolidations could then be required to change to Proportional or Subsidiary at an intermediate parent entity.

  • Entity Elimination Adjustment— This is only available for a Parent entity. Entity Elimination Adjustment entries are generated by the system if the aggregated Entity Consolidation data requires adjustment. This could occur if the cumulative consolidation % of a source level 0 entity increases due to the merging of shared instances of the entity. Equity consolidations could then be required to change to Proportional or Subsidiary at an intermediate parent entity.

    Entity Proportion Adjustment and Entity Elimination Adjustment dimension members are used to adjust consolidated results to what they should be at each parent entity where required. For example, if you have two shared instances of an entity consolidating to a common parent via two different branches of the hierarchy, and they are both consolidated using the Equity method (40% ownership via each branch), then at Entity Consolidation of the common parent, the result would be data representing an 80% Equity consolidation. Instead, what is required is an 80% Subsidiary consolidation, which is different. Entity Proportion Adjustment and Entity Elimination Adjustment are used to adjust the data contributed via the two branches to what the data would have been if a direct 80% Subsidiary consolidation been done (that is, in the flat entity structure). The 80% Equity data in Entity Consolidation aggregated with the EPA / EEA adjustment data would then accumulate to the required 80% Subsidiary consolidation data at Entity Total.

  • Entity Total Adjustment— This is only available for a Parent entity. The summation of Entity Proportion Adjustment and Entity Elimination Adjustment.

  • Translated Currency Input (optional) —This provides for data entry in an Input Currency.

  • Entity Total—The summation of data of an entity, including both input and adjustment data stored in the Entity Input and Translated Currency Input members, any Entity Proportion Adjustment and Entity Elimination Adjustment calculated data and the total contribution stored in the Entity Consolidation member (only for a parent entity).

  • Parent Input (optional) —This provides for data entry in parent currency, and specific to an entity / parent combination. This data is included in proportionalization.

  • Parent Total (if Parent Input is enabled) —The summation of Entity Total and Parent Input.

  • Proportion—The proportionalized values of the Entity Total (or Parent Total) member of a single entity, for a specific parent entity during a consolidation of a consolidation hierarchy. There is one Entity Proportion member in the Consolidation dimension for every Parent/Child entity relationship.

  • Elimination—Consolidation adjustment and elimination data for a specific Parent/Child entity is generated and stored in this member.

  • Contribution—The consolidated result of a single entity for a specific Parent Entity. This includes the aggregation of the Proportion data and Elimination data for the Parent/Child entity.

  • Contribution Input (optional) —This provides for data entry in parent currency, and specific to an entity / parent combination. This data is entered post-proportionalization.

  • Contribution Total (if Contribution Input is enabled) —The summation of Contribution and Contribution Input.

  • Rate Override—This member is seeded in multiple currency applications and is to be used to enter Override Rates against Historical Rate Override Exchange Rate Type accounts.

  • Amount Override—This member is seeded in multiple currency applications and is to be used to enter Override Amounts against Historical Amount Override Exchange Rate Type accounts.

    For more details about the Exchange Rate Type Account Property, refer to Data Types and Exchange Rate Types.

Note: The Entity Consolidation, Entity Proportion Adjustment, Entity Elimination Adjustment and Entity Total Adjustment members are system calculated members and are only applicable to Parent entities.

Note:

You cannot add members to this dimension except through the Enable Features option. After you add members, they cannot be removed.

The list of Consolidation dimension members is also dependent on whether Advanced Consolidations are to be used by enabling Ownership Management. If Advanced Consolidation is enabled, then additional descendants of Entity Total are created named Entity Total Adjustment, Entity Proportion Adjustment and Entity Elimination Adjustment. See Managing Ownership.