In elimination and adjustment rules (picture 1), there are number of settings available which influences the behavior of the calculation and the postings. This document tries to explain the significance of these settings by way of some examples. This also work in conjunction with the settings of the method based multipliers.
If only the reverse sign is flagged, system copies the amount to the destination account (BS111) without changing the sign. This is treated as "COPY" rather than reversal.
If the reverse sign is not flagged, system will post to the destination account BS114, with the changed sign.
If swap entity Int co is checked, system will swap the Inter co to Entity and Entity to Inter co of the source account and post to the destination account BS111 with –ve posting. In this example, the input value for the Entity is AU and the inter co is I_JP. After executing the consolidation run, system will swap the entity values as highlighted.
System will generate postings as per example 3 however without changing the sign, in other words it has copied the amount to the destination account after swapping the entity values.
In all the above examples,The destination account is multiplied by 100% via the M_EQCOB Multiplier ‘ALL Formula’ as shown in picture 2.
In the above example, when the destination group account is maintained, system will look for the group formula in method multiplier and calculate the amount by multiplying the subsidiary equity of 25% maintained in the ownership manager as highlighted above for the entity.
1 Source account BS215 will be eliminated by posting to the same account (destination account) 100% since all formula is maintained as 1 in method based multiplier.
2 Source account (BS215) is multiplied by the Group Formula Multiplier and offset against Consolidation Reserves (BS211). In this case this is ‘POWN’ or 75%ownership and the offset account is the value (BS211) specified in the ‘Destination Group Account’column.
3 Source account (BS215) is multiplied by the Minority Formula Multiplier and offset against Minority Reserves (BS212). In this case this is 1 minus ‘POWN’ or 25% ownership and the offset account is the value (BS212) specified in the ‘Destination Minority’ column.
Concepts have been developed based on the example provided in the following document: