ERPstuff - Oracle EBS Community

Hi,

I am a new member. I need some functional background info on Oracle Consolidation. On Pg 151 of the Financial Document v3.11 ? Consolidation Exercise, the example taken uses three set of books but same value set. Any particular reasons for such choice? Is it always this way? What other options do we get in practice generally? How is consolidation different from Translation? What would we have done had one set of books would have had USD as its functional currency?

Pls also share any other info you may deem useful for a beginner.

Regards,

Karan

Hi,

I believe you can yourself answer this question if you carefully go through GL PDF.

Value set need not be same but the Consolidated books should have all the corresponding values of Subsidary COA values and if not the consolidation results in errors.
That's why COA planning is done at PM or PL level.

Regards,
Ca. Sridhar.

Hi Karan,

During consolidation we combine the financial results of multiple subsidiaries with the parent company to have combined financial statement whereas before consolidation we need to do either translation or MRC as per the requirement. Translation and MRC is used to convert the balances or transactions in the parent company's functional currency.

Regards,
Raghu

Hi Raghu,

Thanx for your reply. What is the difference b/w MRC and Translation? Are they independent processes?What purpose do they serve?

What rates are used while doing translation for various Balance Sheet and Profit and Loss items?

Regards

Karan

Hi Financial Gurus,

We have a scenerio like.
Four comapnies with same single SOB.(Cureency,calendar,COA were same)
we want to see the consolidated trial balance for the four companies .
How does this scenerio is met by consolidation.
Can anyone help me for this situation.

Thanks
prabhakaranraj@gmail.com

Hi
Mr.Prabhakar!

You asked a good question, If all the 3 c's are same you can perform an FSG to make a consolidated financial results.

The consolidation is nothing but to combine all the subsidiaries financials results.

In case of any difference in any of 3 c's you can perform consolidation by mapping the subsidiaries to parent sob.
If Currency is the only difference you can make a transaltion before consolidating the subsidiaries to parent.

Is it clear?

Regards
Surya
Senior software Engineer

Thank a lot Suryaprabha.

You have given me a clear picture of consolidation.

Still i have a doubt of in my secenerio, Do i have to have any one of the comapany as the parent comapny to map the other three companies(subsidiaries) so that
i can run the trial balance from the parent comapny to see the consolidated trial balance which posses the transactions of all the four companies.

I hope u would have understood my question.

Can u explain me in detail.

Thanks in advance

Prabhakaran.R
Oracle practice
prabhakaranraj@gmail.com

Hi Prabhakar,
I am a new guy to the Oracle World and also to this Forum.
Consolidation is a process of adding the financial statements of Subsidiaries with the Parent Companies. Without Parent Company there is no question of Consoidation.

And in ur situation as the 3C's are same it can be consolidated with the help of FSG

Regards,
suman

Thanks Suman......