Consolidation Dimension

Return to Financial Consolidation Model Overview.

The Consolidation dimension contains the elements that represent the steps of the consolidation process. You can see these steps below:

Element	Description
Local GAAP	Figures from separate financial statements according to general accepted accounting principles are imported into the the `Local GAAP` element.
Adjustment 1	This element contains late adjustments to the local GAAP values. Reasons for such adjustments can be time constraints or process limitations in the data collection process or the compensation of accruals and deferrals.
Transition	This element contains transitions from the local GAAP (the reporting standards used by the individual legal entity) to the group GAAP (the reporting standards used by the group or subgroup) .
Group GAAP	Reported figures once adjustments and transitions are accounted for.
Correction	Corrections to disclose unrealized reserves and losses and the depreciation thereof.
Group GAAP Corrected	Group GAAP after the corrections for unrealized reserves and losses are accounted for. The values on this level are used for the intercompany reconciliation.
Adjustment Consolidation Method	This element contains adjustments for consolidation methods: Separate financial statements from entities consolidated with the equity method are removed. Separate financial statements from entities consolidated with the proportional method are reduced by the non-consolidation rate Intercompany relations to entities consolidated with the proportional method are reclassified as external by tthe non-consolidation rate This element is populated automatically during the Consolidation procedure.
Adjustment Investment Register	The `Adjustment Consolidation Method` is not journaled, meaning its data is directly inputted into the cubes without any entries in the posting journal. The data merged from the investment register into the `Balance Sheet` and `Balance Sheet (Segment)` cubes is written to the base elements in the new `Adjustment Investment Register` hierarchy.
1) Merge Investment	This step involves integrating the updated investment data into the `Balance Sheet` and `Balance Sheet (Segment)` cubes.
1A) Eliminate Internal Investments	Values of the investment account at historic rates in the `Balance Sheet`, on base elements of the `T999 Closing` element within the `Transaction Type` dimension, at the Group GAAP Corrected or Adjustment Consolidation Method level, are offset with negative values at this level.
1B) Add Investments from the Investment Register	Values of the investment account at historic rates, for the same `Version`, `Month_YTD`, and business combination (`Investor`, `Investee`) in the Investment Register, are added at this level and assigned a Transaction Type corresponding to the business transaction event.
2) Balance Sheet Correction	This method is triggered by a business transaction of `Type 1 - Investment` and moves values from Transaction Type `T000` to Transaction Type `T011`. This is needed because investees report their financial statements from the perspective of a single company, including values in the opening balance which, from a group perspective during the period of investment, are not an opening balance but should be represented as values from incoming units.
2A) Elimination of Balance Sheet from Original Transaction Types	Values for the same `Version`, `Month_YTD`, and business combination (`Investor` and `Investee`) as the business transaction in the Investment Register are offset in the Balance Sheet with negative values at this level.
2B) Balance Sheet on Special Transaction Types	Values for the same `Version`, `Month_YTD`, and business combination (`Investor` and `Investee`) as the business transaction in the Investment Register are added to the Balance Sheet at this level.
3) Merge Equity	Optimize equity account management by centrally incorporating historic rates from the Investment Register. This approach accelerates data collection, improves data quality, and removes the need for repetitive manual entry in separate financial statements. The entire process and steps in the Adjustemnt of Mege Equity work when the Activate merge equity setting is properly configured and enabled.
3A) Elimination of Equity	Eliminates equity values except for "Retained Earnings account values" at historic rates in the Balance Sheet, which are captured from the separate Financial Statements of the Investee by offsetting them in the Balance Sheet with negative values at this level.
3B) Equity from Investment Register:	Adds the equity values from the investment register's Investee’s equity accounts with Historic values. The figures in Historic values for the element `Equity from the Investment Register` should correspond to the `Investment Register` figures, offsetting them in the Balance Sheet with negative values at this level.
Combined Financial Statement (Calculated)	All the above elements aggregated. After conversion into the group currency and aggregation of all entities these values represent the combined financial statement.

When the consolidation is run, the results from the Combined Financial Statement (calculated) in the group currency are transferred to the report, then further run through the consolidation rules, which are outlined below:

Combined Financial Statement	This element represents the result of the preparation phase and the beginning of the consolidation phase. Basically the figures are a physical copy of the `Combined Financial Statement (Calculated)` element, converted into the group currency.
C	Capital Consolidation: The group of any consolidation measures on investments and equity.
D	Debt Consolidation: The group of any consolidation measures on assets and liabilities.
I	Elimination of Unrealized Profit on Inventory: The group of any consolidation measures on inventory accounts including an unrealized internal profit.
S	Expenses and Income Consolidation: The group of any consolidation measures on income and expenses, including dividends.
M	Manual Consolidation Bookings: Users can choose to store manual consolidation journal entries in this group (to separate these from automated journal entries) or store the manual journal entries in on of the other groups and leave this element unused.
All Consolidations	The aggregated value of all consolidation measures.
Consolidated	The Consolidated Financial Statement figures consisting of the Combined Financial Statement and all consolidation measures.
Adjustment 2	This element contains adjustments of the Combined Financial Statement.
Consolidated Adjusted	The final Consolidated Financial Statement, including the adjustments.

Attributes

The Consolidation Dimension elements can be configured through their attributes:

Attribute	Definition
Name	Readable name of the partner entity, visible in the report. Localized translations can be provided. There is no hard-coded behavior implemented upon this name. (string)
ID_Name	Combination of the element name, a dash (“ – “), and the localized name attribute. (calculated, string)
Journaled	Numeric attribute with the following settings: 1 on base level elements: these elements are under full control of the Posting Journal. You can create journals to populate this element. Imported data and manually entered values are disallowed and may be overridden once journal entries are posted- 0 on base level elements: these element are not affected by the Posting Journal. Values for these elements may be imported or entered manually. Journal entries are disallowed and may not be created or posted.

Elements Allowed for Modification

Users can modify the following elements, as they are not used for internal processes:

Adjustment 1
Transition
Group GAAP
Correction
D (Debt Consolidation)
I (Elimination of Unrealized Profit)
S (Expenses and Income Consolidation)
M (Manual Consolidation)
Adjustment 2

Updated February 7, 2025