SAP Group Reporting Group flat structure and how to organize multi level Consolidation

In SAP Group Reporting, the group structure is managed as a flat list of consolidation units. This means there's no inherent hierarchical relationship between the units within the structure itself.

This might seem counterintuitive when dealing with multi-level consolidations, where you have parent companies, subsidiaries, and potentially even sub-subsidiaries. However, SAP Group Reporting achieves this through the concept of consolidation groups.

Here's how it works:

1. Consolidation Units: Each company in your group is represented as a consolidation unit in the system.
2. Consolidation Groups: You create consolidation groups to represent different levels of consolidation. For example, you might have a group for the top level (parent company), another for a regional subsidiary, and so on.
3. Assignment: You assign each consolidation unit to the appropriate consolidation group(s). This is how you establish the relationships for multi-level consolidation.

Example:

Imagine a structure with:

• Parent Company A
• Subsidiary B (owned by A)
• Subsidiary C (owned by A)
• Sub-subsidiary D (owned by B)

You would create:

• Consolidation Units: A, B, C, D
• Consolidation Groups:
  • Group 1: Top Level (A)
  • Group 2: Subsidiaries (B, C)
  • Group 3: Sub-subsidiary (D)

Then, you would assign the units to the groups:

• A to Group 1
• B to Group 2
• C to Group 2
• D to Group 3

When you run consolidation for Group 2, it will consolidate the results of B and C. When you run consolidation for Group 1, it will consolidate the results of Group 2 (which already includes B and C) and A.

Key Takeaways:

• The flat structure simplifies management and provides flexibility.
• Consolidation groups are used to define the hierarchical relationships for consolidation.
• You can assign a unit to multiple groups if needed (for example, if a unit needs to be consolidated at different levels).

This approach allows for complex multi-level consolidations while maintaining a simple and efficient structure within SAP Group Reporting.