GL, AP, AR - What is Consolidation Account and What is Consolidation process

[Moonwalker]

Hi Everyone,

Can anyone kindly provide explaination and useful pointer to what are consolidation process and account in regards to AP, AR and GL and why we do consolidation account

[apps_expert]

Consolidation is the period–end process of combining the financial results of separate subsidiaries with the parent company to form a single, combined statement of financial results. Clients can consolidate any number of subsidiaries that use different SOBs and having different COA, currencies and calendars.

There are basically two consolidation tools which can be used for consolidation within Oracle GL.

1. Financials Statement Generator (FSG) - Used for consolidating financial information for businesses using a single SOB or using different SOB that share the same calendar and COA.

2. Global Consolidation System (GCS) - GCS is a multi-source consolidation solution that can accumulate information from diverse financial systems, geographic locations, including Oracle and non-Oracle Applications. With GCS one can consolidate data from multiple SOBs, multiple instances and non-Oracle applications.

[anna575]

Thanks for allowing me to comment! I really enjoyed your well written thread. You made it easy to understand this otherwise complex subject. There are a lot of tools which is very informative. Nice Work...