How to perform consolidation
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.
The Global Consolidation System (GCS) provides the flexibility to help manage your consolidation needs regardless of your company structure. You can maintain multiple companies with different accounting structures, different accounting calendars, and different local currencies.
To consolidate multiple companies with single set of books, first complete eliminating entries, and then create reports on the consolidated parent.
This document focuses on the Global Consolidations System (GCS) which can consolidate data from any Chart of Accounts, Calendar or functional currency. In addition, GCS can consolidate data from other accounting systems besides Oracle.
To consolidate multiple sets of books on multiple application instances, financial data must be moved from diverse sets of books and data sources into a single consolidation set of books. For those subsidiaries whose sets of books are located external to the applications instance where you plan to perform your consolidation activities, you must maintain dummy sets of books.
Configure consolidation book
It is recommended that you configure a separate consolidation book that is not directly fed from any Subledger or non-Oracle information source.
Once the book is defined, at least one period will have to be opened.
If you have multiple Sets of Books on multiple instances or non-Oracle General Ledger Systems, create dummy sets of books within GCS parent’s database instance. Each of these sets of books represents the subsidiary sets of books on disparate application instances.