MB6-893 · Question #74
You are implementing consolidations for your company. You want to use the consolidation conversion principles to convert subsidiary data in foreign currencies. What are three requirements for…
The correct answer is A. Consolidation accounts B. Balance control account D. Legal Entity. You'll need to follow several steps to set up the consolidation company. First you need to create a new legal entity, configure the basic general ledger parameters, define the accounts for automatic transactions, set up currency and exchange rates if required, and configure the…
Question
You are implementing consolidations for your company. You want to use the consolidation conversion principles to convert subsidiary data in foreign currencies. What are three requirements for starting the consolidation process? Each correct answer presents part of the solution.
Options
- AConsolidation accounts
- BBalance control account
- CConsolidation account group
- DLegal Entity
- ELedger elimination rule
How the community answered
(22 responses)- A77% (17)
- C14% (3)
- E9% (2)
Explanation
You'll need to follow several steps to set up the consolidation company. First you need to create a new legal entity, configure the basic general ledger parameters, define the accounts for automatic transactions, set up currency and exchange rates if required, and configure the ledger and define the chart of accounts' currencies and account structures. Consolidations do not necessarily require that you set up the consolidation company in advance, but if you want to use the consolidation conversion principles to convert subsidiary data in foreign currencies, you must set up the consolidated company main accounts.
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