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Former Member

Moving Consolidation Unit from one group to another

Hi

We are in the midst of re orgnaising our reporting structure with the result we would like to shuffle some of the organizational entities from one group to another. Before we could do that we would like to study the impact if any it may cause in our consolidation reporting. My question is: whether I can switch consolidation unit from one group to another in the midst of a year?

What impact it causes in the COI calculation?

Appreciate your valuabel reply.

Regards

Abu

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 08, 2009 at 01:35 AM

    Dear Abu,

    Yes we can move consolidation unit from one consolidation group to another.

    first effect would be in consolidation hierarchy. It will exist in 2 places from the period of this change.

    In List of totals records we can see the data for the same legal entity under 2 consolidation groups. Under old cons group old data & from the change effective under new consolidation group.

    COI effect depends on the changes you did for the consolidation unit & consolidation groups.

    Thanks

    Kamal

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  • Posted on Sep 08, 2009 at 11:54 AM

    To avoid gains/losses for divestiture relating to the changes, it is suggested to use org change logic if it is implemented.

    Otherwise, the gain/losses from CoI may have to be ignored or manually reversed with a posting level 30 manual document type.

    Also it is necessary to include the preparation for cons group changes tasks to avoid double counting where the cons units are in the hierarchy in both old and new locations.

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    • Whether or not to exclude preparation for cons group changes tasks depends on the desired reported results.

      If all the P&L results are to be included in the new cons group retroactive to the beginning of the year then the preparation for cons group changes is not necessary.

      However it is considered best practice to include the preparation for cons group changes so that the reported result may be reported wither way with the utilization of reference period/year.

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