What is preparation for consolidation in SAP FI-LC - Consolidation?

SAP Term: preparation for consolidation

• Component: FI-LC

• Component Name: Consolidation

• Description: A preparation of individual financial statement data, ensuring that it can be passed on to the system in a form in which it can be processed. These preparations are a prerequisite for the automatic transfer of data from the SAP applications Financial Accounting FI, Profit Center Accounting PCA, Materials Management MM and Sales and Distribution SD into the system. These systems, in which data is initially entered prior to consolidation, have the capability of managing the necessary additional account assignments in their documents and passing them on to the system when data is transferred. The following are examples of additional account assignments: Transaction type Trading partner Currency Acquisition year Some of the functions involved in preparations for consolidation can also be used independently of the SAP system to reconcile payables and receivables, or revenue and expenditure, between subsidiaries and send data to

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• Key Concepts: 
  Preparation for consolidation is a process in the FI-LC Consolidation component of SAP that allows users to prepare their financial data for consolidation. This process involves collecting and organizing financial data from multiple sources, such as subsidiaries, into a single, consolidated set of financial statements. The data is then checked for accuracy and consistency before it is used in the consolidation process. 
  
  How to use it: 
  To use the preparation for consolidation process in SAP, users must first collect the necessary financial data from all relevant sources. This data should be organized into a single set of financial statements that can be used for consolidation. Once the data is collected and organized, users should check it for accuracy and consistency before proceeding with the consolidation process. 
  
  Tips & Tricks: 
  When preparing financial data for consolidation, it is important to ensure that all data is up-to-date and accurate. Additionally, users should take care to ensure that all data is consistent across all sources. This will help to ensure that the consolidation process runs smoothly and accurately. 
  
  Related Information: 
  For more information on the preparation for consolidation process in SAP, users can refer to the official SAP documentation or contact their local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to use this feature in SAP.