What is hierarchy of consolidation groups in SAP EC-CS - Consolidation?

SAP Term: hierarchy of consolidation groups

• Component: EC-CS

• Component Name: Consolidation

• Description: An orderly web of consolidation units and groups. A hierarchy features a top consolidation group to which all of the other consolidation groups and units are allocated. A dimension can have multiple hierarchies of consolidation groups simultaneously. This provides the capability of consolidating a consolidation group within a dimension according to different statutory or internal requirements.

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• Key Concepts: 
  The hierarchy of consolidation groups in SAP EC-CS Consolidation is a structure that allows users to organize their data into different levels. This structure is used to define the relationships between different entities, such as parent and child companies, and to create a consolidated financial statement. The hierarchy of consolidation groups is also used to define the consolidation rules and to determine which data should be included in the consolidated financial statement. 
  
  How to use it: 
  To use the hierarchy of consolidation groups in SAP EC-CS Consolidation, users must first create a consolidation group. This group can be either a parent or a child company. Once the group is created, users can then define the relationships between the different entities within the group. This includes defining which entities are included in the consolidated financial statement and which entities are excluded. 
  
  Tips & Tricks: 
  When creating a hierarchy of consolidation groups in SAP EC-CS Consolidation, it is important to ensure that all of the entities within the group are properly linked together. This will ensure that all of the data is properly consolidated and that the consolidated financial statement is accurate. Additionally, it is important to ensure that all of the entities within the group are properly defined so that they can be included or excluded from the consolidated financial statement as needed. 
  
  Related Information: 
  For more information on how to use the hierarchy of consolidation groups in SAP EC-CS Consolidation, please refer to SAP's official documentation on this topic. Additionally, there are many online resources available that provide detailed tutorials and step-by-step instructions on how to use this feature.