Description
You can use the SEM component Business Consolidation Consolidation to determine the resources of a group or a similar enterprise or organizational unit, the claims by others to those resources, and the changes to those resources. Consolidation also provides the means for internal and external enterprise reporting.You can consolidate based on customer-defined consolidation units. Consolidation units can represent, for example, companies, plants, business areas, profit centers, and cost centers. You can also portray matrix organizations for example, using a combination of companies and profit centers.You can standardize the financial data reported by individual consolidation units to adhere to the accounting and valuation standards of the group. You then translate the standardized financial data from the various local currencies into the group currencies. Finally, you can eliminate the effects of group-internal relationships for example, from interunit trade and services. Thus, you calculate the consolidated financial statements as if the group were a single entity.