What is subsequent consolidation in SAP FI-LC - Consolidation?

SAP Term: subsequent consolidation

• Component: FI-LC

• Component Name: Consolidation

• Description: The consolidation of investments activity that can occur for the first time in the period of first consolidation for any internal trading partner. It is not affected by any changes in investments of immediate investors. When applying the purchase method or proportional consolidation, the activity includes the amortization of goodwill and eliminated hidden reserves fair value adjustments, and the adjustment of minority interests to account for changes in investee equity. When applying the equity method, the activity primarily updates the immediate investors' equity in earnings of affiliates, as with the changes of the proportional equity of the company consolidated using the equity method. An exception to the above definition is that it is also customary to refer to all consolidations that follow the first consolidation as subsequent consolidations.

Smart SAP Assistant

• Key Concepts: 
  Subsequent consolidation is a process in the SAP FI-LC Consolidation component that allows companies to consolidate their financial statements from multiple legal entities into one set of consolidated financial statements. This process is used to ensure that the consolidated financial statements accurately reflect the financial position of the company as a whole. 
  
  How to use it: 
  To use subsequent consolidation in SAP FI-LC Consolidation, first create a consolidation group that contains all of the legal entities that need to be consolidated. Then, enter the necessary data for each legal entity into the system. Once all of the data has been entered, the system will automatically generate a consolidated set of financial statements. 
  
  Tips & Tricks: 
  When using subsequent consolidation in SAP FI-LC Consolidation, it is important to ensure that all of the data entered into the system is accurate and up-to-date. Additionally, it is important to regularly review and update the consolidation group to ensure that all relevant legal entities are included in the consolidation process. 
  
  Related Information: 
  Subsequent consolidation is just one of many features available in SAP FI-LC Consolidation. Other features include currency translation, intercompany eliminations, and reporting. For more information on these features and how to use them, please refer to the SAP Help documentation.