Consolidation Groups

The consolidation groups that you set up determine how you can consolidate financial information. Each group represents a combination of companies for which you want to merge data on reports (for example, all European companies of a global enterprise).

You can set up as many consolidation groups as your enterprise needs. Most enterprises set up one consolidation group that includes all companies so that it is possible to generate reports for the entire enterprise.

For each consolidation group, you specify the following information:

• The companies included in the group
• Any special instructions for account elimination
• If you use the Multicurrency feature: the reporting currency for the consolidation group, a gains and losses account, and the accounting standards used to generate reports when account balances are in multiple currencies