Consolidation Methods
The Consolidation Method page enables you to set the default values that determine how units are rolled up when ownership properties are specified.
There are four methods of consolidation:
- Full
- A company is 100% consolidated in the group’s results.
- Proportional
- Consolidates at the percentage specified by the ownership property.
- Equity
- Uses a method of accounting where the investment is initially recorded at cost. Equity units are not included in the consolidation. However, equity units are used as a source for Ownership journals. The percent specified by the journal entry is included in the consolidation.
- Investment
- The group’s ownership of this company is so small it is considered an investment only. Investment units are not included in the consolidation. However, investment units are used as a source for Ownership journals. The percent specified by the journal entry is included in the consolidation.