Performing Consolidations with respect to any of the below methods/scenarios/cases

 

Consolidation Method	Multiple Ledgers	Single Ledger	Data Transfer -complex financials, multiple ERP’s or instances
Case	-Addition of new company as a Subsidiary ledger in case of a new company -COA structure, Calendar and currency are same across ledgers	Addition of a new company as legal entity within the same ledger	Addition of legal entity/entities or ledger/ledgers in case of new company/companies and uses consolidation tool.
Pain Areas	-Addition of a ledger -Defining and maintaining the mappings and mapping sets -Consolidation definitions etc.	-Addition of a legal entity -Defining and maintaining the lookups -Defining and maintaining the mappings.	Configurations on the tool for required integrations
Approach	Oracle's Global Consolidation System (GCS)	Financial Statement Generator (FSG) or BI Reporting	Oracle's Hyperion Tool

              

1.      Consolidation Method: Global Consolidation System

Case 1 – Considering new company as a new subsidiary ledger.

Assuming operations majorly in United States and having one parent ledger with USD currency and whenever a new company is added client considers that as a new subsidiary ledger since the COA structure and currency is the same and in sync with the parent ledger.

 

Below are the steps of consolidation via GCS Process:

·        Define ledger.

·        Prepare subsidiary data.

·        Create Consolidation and Chart of Accounts Mapping– Subsidiary to parent COA structure mapping.

·        Translation - If any foreign currency ledger or company, then you need to run translation to bring all the journals in your parent ledger currency.

·        Transfer the data – Run the Consolidation Data Transfer program to transfer balances or transactions from your subsidiaries to the parent ledger.

·        Import - Each transfer creates a consolidation journal in the parent ledger.

·        Elimination - Elimination intercompany balances

·        Posting - Post journals

·        Trial Balance - Run TB

·        Reporting - Financial reports from the consolidated ledger

·        Analyze - Use full drilldown capabilities to drill from consolidated balances down to subsidiary journal lines and subledger detail.

Benefits:

·        View the status of your consolidation and monitor subsidiary account balances for any changes that occur after the subsidiary data has been transferred.

·        Global consolidation system uses the same master files and bases on the same data model as GL, therefore there is no need for integration (e.g., Chart of Accounts, currency rates)

·        Global consolidation system would allow you to drill down to source documents – if you transfer transactions (not balances) to your consolidated set of books.

 

 

 

2.      Consolidation Method – Financial Statement Generator or BI Reporting:

Case  2– Considering new company as a new legal entity or balancing segment value.

Assuming that operations majorly in United States and having one parent ledger with USD currency and whenever a new company is added client considers that as a new legal entity with their COA structure and currency same and in sync with the parent ledger.

                                                

Below are the steps for doing consolidation via BI reporting Process:

·        Creating a new legal entity/new company under the parent ledger.

·        Lookup to be configured in Oracle EBS for legal entities mapping, map all Legal entity to one consolidated value in the lookup.

·        Create another lookup for intercompany elimination entries and map all the Legal entity to one elimination value in lookup.

·        The intercompany elimination entries will be reversed in the consolidate ledger.

·        Create a custom report for consolidation of all balances under one consolidated legal entity.

 

Below are the steps for doing consolidation via FSG Process:

·        Creating a new legal entity/new company under the parent ledger.

·        Creation of row sets, column sets in FSG.

·        Mappings to be maintained under row set and column set for company, accounts etc.

·        Create a custom report for consolidation of all balances.

Benefits:

·        No need to run additional processes to consolidate unless ledgers have a different currency than the consolidation currency.

·        View the consolidated balances anytime. This cannot be done in the Balance Transfer Consolidation method because that method requires a balance transfer be done to achieve consolidation.

·        Faster close process.

 

3.      Consolidation Method - Hyperion:

Case 3 – Considering the new company as either a subsidiary ledger or a legal entity under the parent ledger.

Assuming that client is operating majorly in United States and having one parent ledger with USD currency and whenever a new company is added client considers that as either as a subsidiary ledger or a new legal entity with the COA structure and currency same and in sync with the parent ledger.

                                                       

Below are the steps for doing consolidation via Hyperion tool:

·        Connecting Oracle EBS general ledger module to Hyperion data base via FDM (Financial Data Quality Management) /ODI (Oracle Data Integrator).

·        Creating dimensions for capturing the data

·        Collecting and loading the data

·        Calculating and adjusting the data

·        Consolidating the data

·        Locking and publishing the data

Benefits:

 1) HFM is better than GCS in terms of tracking history of consolidation parameters, like entities and mappings that were used for consolidation purposes in the past

2) HFM is more visual, consequently it is easier to maintain, as you adapt your consolidation parameters to ever-changing needs

 3) HFM shares the data model with Hyperion Planning, which could be a tangible benefit if you plan on using HP for financial planning and modelling