Consolidation is a process that gathers data from various ledgers into a single ledger for reporting and other related processes. In many cases companies use multiple ledgers for various reasons and at the end of the period will want to consolidate them to report in a combined manner in a single currency.
The multiple ledgers could be in different currencies and that would involve additional processes before consolidation can be completed.
The following figure is a pictorial of the tasks before you can consolidate and report:
There are multiple ways to consolidate within E-Business Suite.
You can consolidate within a ledger, where multiple company codes (normally balancing segments) are transacted. This type of consolidation does not require a separate process to be completed prior to reporting. The standard reports can be generated to show fiscal reports for each value of the balancing segment, and with parent/child values and/or rollup groups with summary accounts a consolidated...