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Business Rules_ adjustments and Eliminations.

Former Member
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Hi all,

I want to understand the meaning and use of these columns in Business rules. Also in which business scenarios these will be useful.

Business Rules adjustments and Eliminations

1. Force Closing

2.Swap Enity-Incto

3.Force Intco Member

4.Periodic Calculation

5. Reverse Sign

Thanks,

Ravindra Sane

Message was edited by: Ravindra Sane

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Former Member
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Follwoing is my understanding. Please guide me.

1. Force Closing: If we check in the business rule, system will create separate additional line on the destination flow with the F99 as Closing Flow. Can any one tell business reason for the same? Do we need this for Balance sheet items for copy opening balance for next year?

2.Swap Enity-Incto: if in the source data there are Entity and Interco in the transaction

Example: GL Entity     Intco     Signdata

               500 A1          I_B1     100

The amount will get posted to destination GL defined as per business rule and with Intco as I_A1 and Entity B1. Why such posting is required? Are there any business reasons?                                   

3.Force Intco Member: Extra recod will get generted at I_NONE to destination account. Need more clarity.

4.Periodic Calculation: Need more information and Clarity.

5. Reverse Sign: If we check, the amount will get posted to destination GL/group with the reverse sign. Why we need reverse sign.? Any specific reasons?

Is it required to use combination one or more to get meaningful results?

Thanks

Ravindra Sane

Former Member
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Hi Ravindra,

Periodic Calculation

It is valid for YTD models. Let us say, we have transactional data for JAN and FEB, - CASH Account

JANFEB
      500 650

  Now if we run currency conversion, without clicking periodic, and assuming rates as 1, we will get value

JAN     FEB

500     650

in target currency.

Now if we run currency conversion by clicking the periodic button, it will only do the currency translation of the incremental value i.e. 650-500.

So we will get the result as

FEB

150

Regards,

Archit

Former Member
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Hi Archit,

Your answer is helpful for me.

Periodic Calculation

But do you know importance of other checks(fields in Business rules) and its usage in consolidation from business point of view. (for getting consolidated data)

Thanks,

Ravindra Sane

Former Member
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Hi,

Force Closing:

This will duplicate the posting on the flow defined with flow_type closing which must be a base level member of the flow dimension.

We use this normally when we have data by flow for actuals but also without flow for budgets. In our flow dimension we have flow from F_000 to F_999 with F_999 being calculated. We also have an element F_NONE which we use for budget data. This F_NONE has a flow_type of closing.

If a busines rule now creates a posting on F_000 and the force closing option is ticked, the same amount will also be posted to F_NONE.

Swap Entity_Intco

If your business rule takes data from a given entity intco combination, the resulting post will invert the entity and intco.

Let's say the base data is reported by entity A with  I_B as the intco element. The business rule would now post to entity B with I_A as the intco element.

Force Intco Member

My understanding is that this will not create an additional posting but replace whatever intco element is connected to the base data with the one selected in the rule.

Let's say in the rule you have set the forced intco member as I_NONE and the base data is as above reported by entity A with I_B as the intco element. The posting would then be on entity A with I_NONE as the intco element and nothing would be posted with I_B as the intco element.

Periodic calculation

This applies to YTD applications/models. Let's use an example from the currency conversion. Your rule uses the average rate and you have the follwoing data and rates:

Period1: LC 100 (YTD), rate 1.5
Period2: LC 150 (YTD), rate 1.8
Period3: LC 200 (YTD), rate 2

without periodic calculation

The system will convert the 100 in period1 at the rate of 1.5 giving 150
The system will convert the 150 in period2 at the rate of 1.8 giving 270
The system will convert the 200 in period3 at the rate of 2 giving 400

with periodic calculation

The system will convert the 100 in period1 at the rate of 1.5 giving 150
The system will calculate the period movement for period2 as 50 (150 - 100), convert this at the rate of 1.8 giving 90 and add this to the converted amount from period1 (which was 150) giving a YTD for period2 of 240
The system will calculate the period movement for period3 as 50 (200 - 150), convert this as the rate of 2 giving 100 and add this to the converted amount from period2 (which was 240) giving a YTD for period3 of 340

Reverse sign

It does what is described above, i.e. post a debit as a credit and vice versa. I use it for the calculation of indirect minorities on investments to "unpost" direct minority amounts.

Hope this helps,
Arnold

Former Member
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Thanks Arnold for your reply, this information is helping me in analysing the business rule results.