What is 'consolidation group hierarchy' in SAP FIN-SEM-BCS - Business Consolidation?

consolidation group hierarchy - Overview

• Component: FIN-SEM-BCS

• Component Name: Business Consolidation

• Description: Portrayal of a structure of consolidation groups. A consolidation group hierarchy can have only one root node. All nodes, including the end nodes, of a consolidation group hierarchy are consolidation groups. Multiple consolidation group hierarchies can exist simultaneously. This allows you to consolidate the consolidation units according to different accounting requirements for example, for statutory requirements and internal requirements.

consolidation group hierarchy - Details

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  Key Concepts: 
  A consolidation group hierarchy is a structure used in the Business Consolidation component of SAP to organize and manage the consolidation process. It is composed of a set of consolidation groups, which are used to define the scope of the consolidation process. Each consolidation group contains one or more companies that are consolidated together. The hierarchy allows for the creation of parent-child relationships between the different consolidation groups, allowing for a more efficient and organized consolidation process. 
  
  How to use it: 
  The consolidation group hierarchy is created in the Business Consolidation component of SAP. The first step is to create a root node, which will be the top-level node in the hierarchy. This node will contain all of the companies that are to be consolidated together. From there, additional nodes can be created to represent different levels of consolidation, such as geographic regions or business units. Each node can then contain one or more companies that are to be consolidated together. 
  
  Tips & Tricks: 
  When creating a consolidation group hierarchy, it is important to ensure that all of the companies that are to be consolidated together are included in the same node. This will ensure that all of the data from each company is included in the consolidation process. Additionally, it is important to ensure that all of the nodes in the hierarchy