What is consolidation group in SAP FIN-RTC - Real-Time Consolidation?

SAP Term: consolidation group

• Component: FIN-RTC

• Component Name: Real-Time Consolidation

• Description: A user-defined group of multiple consolidation units/entities for purposes of consolidation and reporting. It reflects the hierarchical structure of the company. For example, "SAP" being the highest group, followed by the second group encompassing the entities/units ASIA, EMEA, AMERICAS, up to the lowest group encompassing the enitites/units SAP Germany, SAP Italy etc. Note: In RTC "unit" and "entity" bear the same meaning, however in connection with the module BPC "entity" is the common term, and in connection with S/4 "unit" and "entity" are common.

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• Key Concepts: 
  A consolidation group is a collection of companies that are consolidated into a single financial statement. This is done using the FIN-RTC Real-Time Consolidation component of SAP. This component allows for the consolidation of multiple companies into one financial statement, which can then be used to analyze the performance of the entire group. 
  
  How to use it: 
  The FIN-RTC Real-Time Consolidation component of SAP allows users to create a consolidation group. This is done by selecting the companies that need to be consolidated and then setting up the consolidation rules. Once the consolidation group is created, users can then use the component to generate a consolidated financial statement. 
  
  Tips & Tricks: 
  When creating a consolidation group, it is important to ensure that all of the companies in the group have similar accounting standards and practices. This will ensure that the consolidated financial statement is accurate and reliable. Additionally, it is important to regularly review and update the consolidation rules to ensure that they are up-to-date and accurate. 
  
  Related Information: 
  The FIN-RTC Real-Time Consolidation component of SAP also allows users to perform intercompany eliminations and currency translations. Additionally, users can also use this component to generate reports on the performance of the consolidated group.