Consolidation
Consolidation refers to the combining of financial data from several companies within a group into a single set of financial statements. Individual financial statements are brought together according to uniform rules so that the group’s assets, liabilities and results are presented correctly. Internal deliveries, receivables, liabilities and profits between affiliated companies are eliminated in the process. In SAP Business One, consolidation is usually relevant when data from several company databases or legal entities needs to be evaluated for financial reporting and the annual financial statements, so that the group obtains a consistent overall view of its financial position.