Enabling subgroups

Subgroup consolidation requires you to set up a dummy entity for each subgroup. Dummy entities receive the subgroup results.

Note: Your management group structures can contain the same parent entities as your legal group structures. Therefore, you must create separate subgroup dummy entities for legal and management structures to ensure correct subgroup consolidation. We recommend that you prefix the names of subgroup dummy entities with, for example, LG_ for legal structures and MGT_ for management structures. This is to differentiate subgroup dummy entities at a glance.

The correct setup of ownership relations is the key to enabling subgroups. The parent entities do not own or control other parent entities, as in the case of parallel consolidation, but own or control dummy entities that represent subgroups. The subgroup results are transferred to dummy entities. The ownership and control percentages of an owned dummy entity stay the same as if the dummy entity was a parent entity in parallel consolidation.

Set up a dummy entity for each subgroup that is part of a higher-level group.
We recommend that you name dummy entities in the same way as the corresponding groups. For example, GR0004_SG_DummyEntity for group GR0004.
Select Parameterization > Group Parameterization > Group Parameter and select the context.
For each group whose results must be transferred to a higher-level group in the ownership structure, select the check box in the Use Subgroup Consolidation column.

Note: Although the top group in the structure does not require a subgroup dummy entity, always select the check box in the Use Subgroup Consolidation column for the top group. This is to ensure that the consolidation processes run correctly.
In the Subgroup Entity column, select the relevant dummy entity for each group.

Note: The top group should not be assigned any subgroup dummy entity because its consolidated financial results are not transferred to any higher-level group.
For legal groups, select Parameterization > Group Parameterization > Legal Ownership > Legal Group Ownership. For management groups, select Parameterization > Group Parameterization > Management Ownership > Management Group Ownership.
Select the context and, on the Table tab, click Calculate Ownership.
Calculate the ownership for each group separately.
Select Consolidation Processes > Run Consolidation and run relevant consolidation processes, including Subgroup Copy and Subgroup Copy Transaction Data. Subgroup Copy and Subgroup Copy Transaction Data transfer the results of a group into the assigned dummy entity in the higher-level group.

Caution:
Run consolidation for each group separately. The order of groups in which you run consolidation is important. You must start with the lowest-level group for the top group and move upwards according to the structure.