What is push-down accounting in SAP (EC-CS - Consolidation)?

SAP Term: push-down accounting

• Component: EC-CS

• Component Name: Consolidation

• Description: A method which discloses a parent unit's proportionate share of goodwill in the balance sheet of the investee unit. In consolidation of investments, the goodwill recorded in the investee unit's books is included in the calculation of the differential excess value, thus reducing the overall goodwill.

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• Key Concepts: 
  Push-down accounting is a method of consolidating financial statements in SAP EC-CS Consolidation. It is used to ensure that the consolidated financial statements accurately reflect the financial position of the parent company and its subsidiaries. The process involves transferring the financial information from the subsidiary to the parent company, and then consolidating it into a single set of financial statements. 
  
  How to use it: 
  In order to use push-down accounting in SAP EC-CS Consolidation, you must first set up the consolidation hierarchy. This involves creating a parent company and its subsidiaries, and then linking them together in a hierarchical structure. Once this is done, you can then transfer the financial information from the subsidiary to the parent company. This is done by entering the relevant data into the consolidation system, which will then automatically transfer it to the parent company. 
  
  Tips & Tricks: 
  When using push-down accounting in SAP EC-CS Consolidation, it is important to ensure that all of the data is accurate and up-to-date. This will help to ensure that the consolidated financial statements accurately reflect the financial position of the parent company and its subsidiaries. Additionally, it is important to regularly review and update the consolidation hierarchy in order to ensure that all of the data is accurate and up-to-date. 
  
  Related Information: 
  For more information on push-down accounting in SAP EC-CS Consolidation, please refer to SAP's official documentation on the topic. Additionally, there are many online resources available which provide detailed tutorials on how to use push-down accounting in SAP EC-CS Consolidation.