Financial consolidation gives organizations the ability to combine multiple general ledger systems into one consolidated chart of accounts (COA) for management, regulatory and tax-related reporting purposes.
Highly acquisitive organizations or those that have been through significant merges oftentimes have multiple general ledger systems with widely varying charts of accounts. Financial consolidation processes and tools allow these organizations to quickly integrate acquisitions without having to undergo the painful process of re-implementing and Enterprise Resource Planning (ERP) system with each new acquisition.
Organizations with significant international presence have foreign currency impacts that may further complicate an already complex consolidation process. Through the implementation of financial consolidation process and tools such as Oracle | Hyperion Financial Management (HFM) and Financial Data Quality Management (FDM) the system can automatically make the translations required and map the COA's from different general ledgers into one consolidated picture.
