The consolidation you choose depends on the number of ledgers you use to satisfy the requirements of your global accounting operation.

Ledgers

A ledger includes four components: the ledger currency, accounting calendar, chart of accounts, and accounting method.

Accounting Operations Using a Single Ledger

If your subsidiaries all share the same ledger with the parent company or they share the same chart of accounts and calendar and all reside on the same applications instance, you can consolidate financial results using the Financial Statement Generator reporting engine.

Accounting Operations Using Multiple Ledgers

Accounting operations using multiple ledgers include the following scenarios:

• single applications instance

• multiple applications instances

Single Applications Instance

If you have some subsidiaries that use their own ledgers, you must perform a data transfer consolidation using the Global Consolidation System to manage your consolidation process.

Multiple Applications Instances

If your subsidiaries manage their accounting operations using Oracle applications and different ledgers on separate instances, you can transfer consolidation data using the Global Consolidation System to manage your consolidation process. You do this through your corporate intranet using Cross Instance Data Transfer. See: Gathering Subsidiary Data for Multiple Instances using Oracle Applications.