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Breakdown structure in consolidation

Former Member
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what do you mean by breakdown structure in consolidation

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Answers (2)

Answers (2)

Former Member
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Hi Saleema,

I have tried much to answer to your multiple queries about consolidation in this forum. Let me know whether really answered your queries and shall be appreciated if so. Otherwise, let me know whether you need further clarification.

Cheers!

Former Member
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Dear Saleema, I hope that you are asking about Breakdown Category in Consolidation. Let me try to be brief as well clear as much as possible.You need to know about FS item and subassignment to understand breakdown category. I think you are aware of Financial Statement(FS) item in Consolidation. It is the central accounting assignment object of the consolidation system. It identifies a monetary value or quantity entry and can be differentiated with further sub assignments. This subassignments further helps in differentiate(breakdown) the values of the FS item. The standard sub-assignments are: Partner Unit-useful for interunit elimination and reconciliation for the elimination of interunit profit/loss in inventory Investee Unit-The investee unit is used for recording values at investment holding items. Transaction Type-helps to see the changes to financial statement items over time. Transaction Currency Key-The transaction currency key is stored in the data basis whenever a transaction currency is used. Unit of Measure-The unit of measure is stored in the data basis whenever quantities are used. It must be fixed in the breakdown category. Year and Period of Acquisition-The year and period of an acquisition are analogous to the fiscal year and period. The current fiscal year and period are used as defaults. The period of acquisition requires that the year of acquisition is contained in the data basis. I think that you could able to visualise how important these subassignments are for the purpose of undertaking various steps in the consolidation exercise. At last and not the least, the break down category assigned to the FS items takes care whether the given FS item has subassignment. If there is no subassignment of 'Partner unit' in FS items of AR and AP, we will not be able to perform inter unit elimination of receivables/payables. Trust this helps much and answers to your query! Cheers, Regards, Ashok SINGH