What is consolidation chart of accounts in SAP FI-LC - Consolidation?

SAP Term: consolidation chart of accounts

• Component: FI-LC

• Component Name: Consolidation

• Description: A consolidation chart of accounts is a systematic classification of financial statement items that serve a common purpose. The classification is marked by either corporate external or internal requirements or both. For example, you could have one consolidation chart of accounts for the purpose of generating financial statements to meet the requirements of statutory authorities, and you could have another consolidation chart of accounts to accommodate corporate-internal requirements for contribution margin accounting. You can have multiple consolidation charts of accounts within a single dimension. This enables you to generate multiple financial statements at the same time to meet various requirements. Example: A single dimension for legal consolidations could use one consolidation chart of accounts for generating consolidated financial statements according to the 4th/7th EU directive, and another consolidation chart of accounts for generating consolidated financial statements according

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• Key Concepts: 
  A consolidation chart of accounts is a set of accounts used to consolidate financial statements from multiple legal entities into one. It is used in the SAP FI-LC Consolidation component, which allows companies to manage their financial consolidation process. The chart of accounts is used to map the accounts from the different legal entities into one consolidated chart of accounts. 
  
  How to use it: 
  The consolidation chart of accounts is used to map the accounts from the different legal entities into one consolidated chart of accounts. This allows companies to consolidate their financial statements from multiple legal entities into one. The chart of accounts can be customized to meet the specific needs of the company. 
  
  Tips & Tricks: 
  When creating a consolidation chart of accounts, it is important to ensure that all the necessary information is included in the chart. This includes account numbers, account descriptions, and any other relevant information that may be needed for the consolidation process. Additionally, it is important to ensure that all the accounts are properly mapped and that there are no discrepancies between the different legal entities. 
  
  Related Information: 
  The SAP FI-LC Consolidation component provides additional features such as currency conversion, intercompany eliminations, and reporting capabilities. Additionally, it provides a range of tools and features that can help companies manage their financial consolidation process more efficiently.