Hi,
The sections that follow deal with sub-applications as they relate to consolidation, from a business administration point of view.
Consolidation of companies (legal consolidation)
Consolidation of business areas
Consolidation of profit centers
Consolidation of product group - profitability analyses
and so on.
This documentation opens with a few fundamentals common to all sub-applications. A typical problem for Consolidation is that the data needed is not managed in a single, centralized system. Instead it must be aggregated from multiple computers or databases. The section "Distribution Scenarios" deals with this problem.
When applications are not centralized, local key structures are usually developed independently. A crucial goal for consolidated reporting is to progress towards a key structure common to the entire corporate group. The section ‘Key Structures’ goes into more detail concerning assignment options and the consequences thereof.
Fast and dependable data transfer is a primary concern in a consolidation concept. This subject is discussed in summary in the section "Data Transfer Methods".
Scenarios
In group consolidation, initial data is usually aggregated from multiple computer systems within the corporate group, rather than being transferred from a single central system. Various scenarios are possible, which become progressively difficult to deal with, the more heterogeneity there is.
Scenario A: The ‘centralized solution’ is the simplest. A single SAP system contains the data for all subsidiaries. Remote terminals connect departments located at remote sites to the system. Data can be transferred into the Consolidation database using the periodic transfer technique as well as the direct, ‘realtime update’ technique.
Scenario B: The ‘remote homogeneous solution’ consists of multiple SAP systems within the group using asynchronous connections. System communication is still relatively fast and the systems can, for example, also replicate table contents. Key structures are all of the same design, although their properties may not necessarily be identical. The data quality (parallel currencies, partner data, and so on) is uniform.
Scenario C: The ‘remote heterogeneous solution’ aggregates the consolidation data from multiple systems that are not only SAP systems. These could be SAP R/2 systems or third party systems, which either use self-programmed individual interfaces or the SAP PC interface for sending data. Difficulties can arise in this case regarding the harmonization of key structures, data quality (completeness) and data transfer.
Scenario 😧 The ‘remote heterogeneous multi-level solution’ is the most difficult. Multiple diverse subgroups produce one set of subgroup financial statements, as in scenario C and pass this pre-consolidated data and certain details of the individual companies on to the superior consolidation department. The problem of assignments must be dealt with in different places and the data must be transferred in the correct time sequence.
regards,
Siddharth
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