GR-1008 SAP Group Reporting - Flat Consolidation Group

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In SAP Group Reporting, a Consolidation Group is a collection of Consolidation Units that you want to consolidate together. Think of it like a reporting structure for your group of companies. Within this structure, you have Parent Units and Child Units, which represent the relationships between your different companies.

• Parent Unit: This is the higher-level entity in the consolidation group. It owns or controls one or more Child Units. For example, a holding company would be the Parent Unit, while its subsidiaries would be the Child Units.
• Child Unit: This is the lower-level entity in the consolidation group. It is owned or controlled by a Parent Unit.

Important Note: In recent versions of SAP S/4HANA (1909 and later), Consolidation Groups are designed to be flat structures. This means you can only have two levels: the Consolidation Group itself (parent) and the Consolidation Units (children). You cannot have multiple levels of parents and children within a single Consolidation Group.

Why the flat structure?

This design change offers several advantages:

• Simplified Management: It's easier to manage and maintain a flat list of units.
• Improved Flexibility: It allows for greater flexibility when reorganizing your group structure.
• Enhanced Performance: It can lead to better performance during consolidation processes.

What if you need a more complex hierarchy?

If your group structure requires more than two levels, you can achieve this using Global Hierarchies in Group Reporting. These hierarchies allow you to create complex relationships between your consolidation units for reporting purposes. However, it's important to remember that these hierarchies are primarily for reporting and analysis, not for the core consolidation process itself.

Can you have more than 100 parents?

Technically, due to the flat structure, you cannot have more than one "parent" per consolidation group. However, if you're asking about having more than 100 consolidation units within a single group, then the answer is generally yes. Group Reporting is designed to handle large volumes of data and complex consolidation scenarios.

Key takeaway: While the concept of Parent and Child Units remains central to Group Reporting, the recent changes emphasize a flatter structure for consolidation groups. This simplifies management and improves flexibility, while still allowing for complex reporting hierarchies through the use of Global Hierarchies.