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Yes Consolidation runs on Entity Structure which is irrespective of the accounts and the custom dimensions, while consolidating the system calculates all the rules and the roll ups of the accounts and customs to there respective parent levels.
Edited by: Srikanth.Chavali on Dec 12, 2012 11:38 PM
Consolidation can be run on a scenario at a time. It typically runs on a data unit (Entity+Month+year+Scenario)
It cannot be run on a an account or custom dimension only.