Handling of leaving entity in BPC Consolidation

[former_member200459]

1.Conclusion：

In method, we can use ‘L’ and ‘D’ to differentiate two different scenarios:

• ‘L’ (Left at last year-end)


• ‘D’ (Disposed during the year)In ‘Elimination and Adjustment’ rule, there’s only ONE rule type for Leaving:

• In ‘Elimination and Adjustment’ rule, there’s only ONE rule type for Leaving:

• The behavior for ‘L’ type elimination rule works in the same way for both ‘L’ and ‘D’ method, which is to reverse all Balance Sheet accounts (account type = AST or LEQ) with corresponding destination audit ID


• P&L accounts will not be handled by this type of rule.


• P&L accounts needs to be handled by generic type rules.

2.Example:

2.1 Period 2009.Dec

Until 2009.Dec, three entities (C2000/C3000/C4000) belong to one group (G_CG2):

 



 

The transaction data for 2009.Dec:



One Elimination rule is defined to reverse the P&L account by the minority ownership percentage (1-POWN):





Please notice that the details rules are set to ‘Periodic Calculation’.

 

Definition of used multiplier, which only works for method ‘Holding’ and ‘Global’:



Consolidation result for 2009.Dec:



The elimination result is saved in the target audit id, AJ_ELIM, with correct amount.

2.2 Period 2010.JanIn next year, 2010.JAN, entity C3000 was sold at the begin of the year:

 



Define a new elimination rule with rule type ‘L’ and target audit id ‘AJ_SOLD’, no details needed.

This rule will only handle the Balance Sheet accounts.



For the P&L rule, add a new line for ‘L’ method which will reverse all P&L amount with a different target flow with YTD basis.



For corresponding multiplier, it only works for method ‘L’ (20).



Consolidation result:



 

• Balance Sheet accounts for C3000 were 100% reversed in audit ‘AJ_SOLD’ (done by ‘L’ type rule)


• The opening flow amount was then reclassified to flow ‘F_VARLEAVE’ (done by scope change in elimination)


• The P&L accounts for C3000 were 100% reversed in audit ‘AJ_ELIM’ (done by generic rule) with different target flow member


• The P&L accounts for C4000 were partial reversed by ownership percentage

 

2.3 Period 2010.Feb

In 2010.Feb, entity C4000 was sold during the middle of the year.



For P&L rule, add one addition detail line for ‘D’ method to only reverse the P&L accounts after the disposal, which is set with ‘Periodic Calc’ with a different target flow member.



 

The corresponding extra multiplier which only works for ‘D’ method (20):



Consolidation result: