The consolidation can occur in a given year when which of the following is true?

• A. The current period consolidation status is Impacted and the remaining periods are OK
• B. The current period consolidation status is OK and all remaining periods are Impacted
• C. The current period consolidation status is OK for all periods
• D. The system automatically consolidates all entities at year-end regardless of content

Answer: (A)

In FCCS, the ability to run a year-end consolidation depends on the status of each period. The key idea is that you want the periods involved in the close to be in a state that ensures all necessary data is considered and there are no outstanding issues in other periods. When the current period is marked as Impacted, it means there are changes in that period that must be included in the consolidation. If all other periods are OK, those periods have no unresolved issues and won’t block the close. So this combination—current period needing consolidation (Impacted) while the remaining periods are clean (OK)—is the scenario where a year-end consolidation can proceed and incorporate the current period’s changes.

If the current period were OK and other periods were Impacted, you’d typically need those impacted periods addressed first before a year-end close. If all periods are OK, you could consolidate as well, but the tested rule emphasizes that the required readiness condition for performing the year-end consolidation in this context is having the current period Impacted with the others OK. The system does not auto-consolidate at year-end irrespective of content; user actions and period readiness determine the close.