on 2013 Jul 30 4:53 AM
Can you help me set up the ownership/group DIM for the following? first 2 groups are okay, but not sure how to relate the 3rd group
H1 owns
C1& C2
C2 owns
D1, D2, E1
D1 Owns
E1
Request clarification before answering.
Hi Sulthan,
If you are doing legal consolidation it will depend on the percentage of ownership, control and consolidation. It will also depend on the GAAP you are following.
Please provide more clearity on the GAAP and percentages.
Regards,
Kalyan.
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Hi Nilanjan,
It depends for e.g, in some countires when holding is greater than 20% but less than 50% you use equity method, but in some countries with ownership within same range (20%-50%) if it is joint operation, it will use proportional method. Now, in legal consolidation equity entities will not appear in any group. But proportional entities will appear. Hope it clearfies.
Regards,
Kalyan.
Hi Nilanjan,
Maybe I misunderstood, but in any case whether 1, 2 or 3 or more members are required in the group dimension will depend on the factors I stated above. For e.g, if E1 is a equity entity it will not even appear in the ownership structure for legal consolidation and we may require one less member in group dimension.
Maybe we are thinking and looking at it from two different directions .
Regards,
Kalyan.
Hi Kalyan,
Are you sure, if an entity is consolidated using equity method, then it should not appear in the ownership structure?
Ownership structure is designed to establish a relationship within the holding and its subsidiaries / JVs / associates. Irrespective of whether its consolidated using full / proportional / equity, it must be a part of the ownership structure. Otherwise, your consolidated entries will not be right. Even in case of equity method entities (associates), there are certain entries that needs to be eliminated / adjusted, and hence needs to be a part of the ownership structure.
The structure, as such, doesnt depend on the consolidation methods.
Hi Nilanjan,
I agree with you on the equity entity will appear, what I ment to say is the percentage and GAAP together will determine the method and the required number of groups. For e.g., D1 hold only, say, 15% of E1 then we will not have any subgroup S_D1. However, if it is porportional method then we may have S_D1.
Regards,
Kalyan.
Hi Nilanjan,
It might be , depending on the percentage of ownership and method applicable as per GAAP.
There are several scenario we have to consider
For e.g., if C2 or D1 owns more than 20% but less than in E1, then it will appear in both sub-group.
However, if C2 own more than 20% and D1 own less than 20% (say 15%)and proportional method is not applicable then it will appear only in S_C2.
Regards,
Kalyan.
Hi Sulthan,
Perhaps, you need HTG document to implement Kalyan suggestion. I would like to inform you it. Please take a look the link: http://scn.sap.com/people/sheldon.edelstein/blog/2011/08/18/ownership-manager-system-generated-propo...
Regards,
Wandi Sutandi
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