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Former Member
May 04, 2015 at 03:48 AM

Elimination of a Consolidation Group

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Hi all,

I have a scenario where a number of consolidation groups are being eliminated. These groups only contain a shell company - the parent and another, lower-level group. Here is an example:

CG1

CU1 - parent

CG2

CU2 - parent

CG3

CU3 - parent

CG4

... and so on

For simplicity, let's assume all companies are 100% owned by the immediate parent. In the above mentioned scenario, company CU3 is dissolved and everything under it is transferred directly under CU2. The trial balance of CU3 was completely reversed. Here is what the hierarchy should look like after the changes (not in BCS):

CG1

CU1 - parent

CG2

CU2 - parent

CG4

... and so on

However, because there are COI entries posted to CG3, CG3 cannot be removed from the hierarchy.


My Question: What is the best way to record the changes in the system so that CU3 no longer appears on the hierarchy and CU4 appears under CU2?

You input is appreciated.

Thanks,

John