What is consolidation of investments in SAP FIN-CS - S4HANA Financial Consolidation?

SAP Term: consolidation of investments

• Component: FIN-CS

• Component Name: S4HANA Financial Consolidation

• Description: Consolidation of investments C/I clears the investment holdings of immediate upper units against their proportionate share in the stockholders' equity of the consolidation units included in the consolidation group. This is done to prevent the overstatement or duplication of asset values in the consolidated financial statements. The Consolidation system supports automatic postings for the C/I activities, such as first consolidation, subsequent consolidation, and divestitures.

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• Key Concepts: 
  Consolidation of investments is a process used to combine the financial statements of multiple entities into one set of consolidated financial statements. This process is used to eliminate intercompany transactions and to present a single, unified view of the financial position of the group. In SAP S4HANA Financial Consolidation, this process is automated and streamlined, allowing for faster and more accurate consolidation of investments. 
  
  How to use it: 
  In SAP S4HANA Financial Consolidation, the consolidation of investments process is initiated by creating a consolidation group. This group contains all the entities that need to be consolidated. Once the group is created, the user can then select which entities need to be consolidated and which transactions need to be eliminated. The user can then run the consolidation process, which will generate a consolidated set of financial statements. 
  
  Tips & Tricks: 
  When consolidating investments, it is important to ensure that all intercompany transactions are eliminated. This can be done by setting up an elimination template in SAP S4HANA Financial Consolidation. This template will automatically eliminate any intercompany transactions when the consolidation process is run. 
  
  Related Information: 
  For more information on consolidation of investments in SAP S4HANA Financial Consolidation, please refer to the official documentation provided by SAP. Additionally, there are many online resources available that provide detailed tutorials on how to use this feature in SAP S4HANA Financial Consolidation.