Group Share calculated on Combination of Company and Profit Centre

[Former Member]

Dear SEM-BCS Experts,

We use Matrix Consolidation structure. The Investment data is entered

on the Technical Profit Centre "DUMMY". Most of the Equity Data is also

posted on the Technical Consolidation Profit Centre "DUMMY". One of

the financial statement items which is a part of the Subsequent

Consolidation selection in the COI Location of Values is a Clearing Balance

Sheet Item which is posted on various Consolidation Profit Centres

automatically.

Subsequent consolidation is done on the basis of Group Shares. The

system calculates group shares on the Consolidaiton Unit Combination

level. Since the Investment share percentage is entered on the

Consolidation Company and the Technical Consolidation Profit

Centre "DUMMY" the group share is calculated only on this combination.

For other Consolidation Profit Centres the group and direct shares have

0%. As a result, the system during Subsequent Consolidation posts 100%

minority interest even for the subsidiaries with 100% investment on the mentioned above Clearing Balance Sheet account.

Could you, please, help me to solve this problem?

Thanks.

Mila Ignatova

[dan_sullivan]

Mila,

Did this ever get resolved? If so, please share with us the resolution as we are encountering something similar and would be very interested.

Thanks,

[dan_sullivan]

In this case, you may wish to create a subsequent reclassification task and method with posting level 30 to reverse the minority interest for profit centers other than dummy with the offset being the clearing account.

In doing this, however it is important to consider also the corresponding statistical items.

Edited by: Dan Sullivan on Nov 19, 2008 3:30 PM

[Former Member]

Just thinking aloud...

run "a subsequent reclassification task and method with posting level 30 to reverse the minority interest for profit centers other than dummy"

To do a reclass after the CoI? On what basis?? I do not see the mechanism other than do it manually. Every ConsPeriod? Don't you think that entering the proper combinations of companies-PCs (one time), as I proposed in my answer above, is much more friendlier to the end customer???

"with the offset being the clearing account"

Are you talking about posting to clearing account??? Then it should be the reclass on the posting level 00, without the task assigned. After entries on PL 30 ?????

[dan_sullivan]

Eugene, thanks for noticing my misstep.

I agree with you that the best situation is for investment to be posted to the individual profit centers. However, if that is not acceptable, a reclassification of minority interest from non-dummy profit centers to the dummy profit center should be a simple one.

I should not have stated the offset as clearing account. The reclass posting would be minority interest balance sheet and minority interest P&L, based (trigger) on the minority interest posted to each non-dummy profit center.

[Former Member]

Dan, thanks so much for your information.

Though, the case of not 100% of shares will make the proposed reclass complicated.

[Former Member]

Hi Mila,

Your DUMMY profit center has almost all investments to ... itself. And nothing to the other PCs.

In order to better understand the consequences, just imagine that instead of PCs we are talking about companies (in one-dimension consolidation). So, the mother has investments to herself and equity in herself too. What the system will do? Do not think that it will eliminate its own investments and equity. And hence, it has no investments (or equity in the daughters), all RE of other PCs will go to minorities. Looks logical, isn't it?

As a remedy, I'd think about the proper distribution of investments and equity between the combinations of Company-PC. The DUMMY PC only is not good. Why at all, in this case, you use the matrix, if everything must go to DUMMY?