Transfer Separate Financial Statements to Subgroups and Group(s)

Return to Financial Consolidation Model Overview.

Data processing in the main cubes of the Financial Consolidation model (Profit and Loss, Balance Sheet, Cash Flow, etc.) begins with providing separate financial statements. This data originates presumably from a source system, e.g., the accounting application. This data is broken down by the legal entities, accounts, and other dimensions. However, this data is not specific to a particular scope of consolidation.

The Financial Consolidation model processes this data to one or multiple scopes of consolidation representing the total group and any subgroups for which a consolidated financial statement is required. These scopes are represented by elements of the Scope dimension. All these scopes are independent of one another, so all the elements of the Consolidation dimension contain values for a particular scope.

This article describes how scope-neutral separate financial statements are combined with the scope-specific data on subsequent consolidation levels. At first, the separate financial statements are captured on the Local GAAP element of the Consolidation dimension and the ~ - Not applicable scope. This data is automatically transferred to the individual scopes. A business rule implements this transfer.

Data on any subsequent step of the consolidation process is scope-specific, which means it is stored and aggregated on elements in the Scope dimension other than the ~ - Not applicable element.

 

 

Scope
~ - Not applicable Total Group AMER EU

 

 

 

 

 

Consolidation level

Local GAAP Imported data from source system Shows values transferred from 'Scope':'~' Shows values transferred from 'Scope':'~' Shows values transferred from 'Scope':'~'
Adjustment 1 Not meaningful Scope specific values posted through the Posting Journal Scope specific values posted through the Posting Journal Scope specific values posted through the Posting Journal
Transition Not meaningful Scope specific values posted through the Posting Journal Scope specific values posted through the Posting Journal Scope specific values posted through the Posting Journal
Group GAAP Subtotal (not meaningful) Subtotal Subtotal Subtotal
Correction Not meaningful Scope specific values posted through the Posting Journal Scope specific values posted through the Posting Journal Scope specific values posted through the Posting Journal
Group GAAP Corrected Subtotal (not meaningful) Subtotal Subtotal Subtotal
... Not meaningful ... ... ...

The scope specific data can be provided manually, by custom procedures, or by the Financial Consolidation model. Some consolidation elements are populated directly, while others are posted through the Posting Journal. The following table provides an overview of the data origins.

Consolidation base elements Provided manually or by custom procedures Provided by the Financial Consolidation model
Local GAAP on 'Scope':'~' Not journaled Separate Financial Statements T000 - Opening populated from the Bring Balances Forward procedure
Local GAAP on other scopes Not journaled (none) Transferred separate financial statements
Adjustment 1 Journaled Manual journal entries including those initialized from permanent journal entries Reused manual journal entries on additional versions, scopes and ledgers
Transition Journaled " "
Correction Journaled " "
Adjustment Consolidation Method Not journaled (none) Populated from the consolidation procedure
Descendants of Adjustment Investment Register Not journaled (none) "
Combined Financial Statement Not journaled (none) "
C - Capital Consolidation Journaled Manual journal entries including those initialized from permanent journal entries Duplicated capital consolidation journal entries, results from consolidation rules, reused manual journal entries on additional versions, scopes and ledgers
D - Debt Consolidation Journaled " Results from consolidation rules, reused manual journal entries on additional versions, scopes and ledgers
I - Elimination of Unrealized Profit on Inventory Journaled " "
S - Expenses and Income Consolidation Journaled " "
M - Manual Consolidation Bookings Journaled " Reused manual journal entries on additional versions, scopes and ledgers
Adjustment 2 Not journaled " Reused manual journal entries on additional versions, scopes and ledgers

 

Updated September 27, 2024