Continuing my discussion on the SAP FI module, today I am picking up the topic of consolidation procedures in the SAP R/3 application. In SAP FI Financials, there are two main consolidation procedures. The first consolidation procedure is called "simultaneous consolidation". The second consolidation procedure is called "step consolidation". SAP FI creates subgroup statements based on simultaneous consolidation. On the other hand, step consolidation takes place as a result of subgroup processing in the hierarchy. Let us discuss each of these procedures in detail.

Simultaneous consolidation - In this type of consolidation, all companies within a corporate group are consolidated in a single process. For each company that needs to be consolidated, FI user must create a sub-group in the consolidation system. There will be as many sub-groups as the number of companies to be consolidated.

Step Consolidation - In the Step type of consolidation in SAP FI, each company is consolidated in steps based on a hierarchy. Step consolidation differs with simultaneous consolidation in the sense that a sub-group is created against each hierarchy level. Each subgroup in the hierarchy flows into the next level in the hierarchy.

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