Dividend Reclassification - Minority Interest P&L

[Former Member]

Hi

I need clarify on the following.

For example: I have one Holding and one subsidiary company. (90% Held by Holding Co.)

Subsidiary company has declared dividend (expenses a/c in P&L appropriation) of USD 100 out of which 90% goes to Holding company as dividend income.

I do Investment income elimination between holding and subsidiary company based on trading partner.

Now I am left with USD 10 in subsidiary company as balance dividend expenses.

I have configured appropriation of retained earnings in income statement.

Now I want the dividend expense of subsidiary to be moved(reclassified) to Dividend M.I.(P&L a/c).

I tried to post this by using reclassification with posting level 20 and 30. But when i executed the task with the document types of posting level 20 and 30, the system gave message "posting is not necessary".

So I changed the document type from posting level 20 to posting level 10. After this I am able to do the dividend reclassfication which transfers from dividend expenses a/c to Dividend M.I. (P&L a/c).

But the dividend reclassification entry should be part of consolidation process. So I feel this entry should come in posting level 30 or 20.

Can anyone tell me is there any specific setting which will enable this document to post in posting level 30 or 20?

Regards

Srinivasan G

9958945462

[Former Member]

Hi

This Can be fixed

1) Allocation task can be used to Allocate dividend in to 90% and 10% in seperate Group GLs.

2) Then the Leaving Minority Proportion beside, 90% can be eliminated with Inter Unit Elimination.

Thanks

Ritesh

[former_member209721]

Hi SrinivasanG,

I am not sure that you correctly got the dividend Elimination process in BCS.

Let's explain it briefly :

A dstributes 100 of dividends (Equity item)

B receives -80 from A (PL Item). B belongs to the group.

Let's suppose that 20 is distributed to MI.

You have to use a one sided elimination (PL20) to eliminate the PL amount (-80). The difference will be posted on the Equity item

The remaining amount on the Equity Item (20) will be automatically posted on the MI account during the COI (if you customize the distribution of dividends in the COI).

Hope it helps

Regards,

Thibaud

[Former Member]

Dear Collet,

I have implemented distribute dividend in SEM-BCS.

I know to work in two steps:

1st step - one - sided IU Elimination

2nd step - consolidation investments.

Should I work with clearing item for "Clearing - Cons Unit" in tab page "Clearing items" in the 1st step?. I

Where should "clearing item for consolidtion unit" be in my hierarchy items: as assets or as liablities?

Thank you in your help.

Best regards,

anka

Edited by: Anka on Mar 10, 2010 12:51 PM

Edited by: Anka on Mar 10, 2010 12:51 PM

Edited by: Anka on Mar 10, 2010 12:52 PM

[dan_sullivan]

The place for the item depends on the GAAP for which the enterprise complies with. In my experience (USA) this is typically a balance sheet item in the equity portion of the hierarchy.

[Former Member]

it's not only US GAAP [SFAS160|http://www.fasb.org/summary/stsum160.shtml], but also IFRS [IAS 27.27|http://ec.europa.eu/internal_market/accounting/docs/consolidated/ias27_en.pdf ]. the official term is 'Non-controlling interests"

dividends are not part of P&L as i learned in my first accounting class,

well, not really first, more like fifth...but it sounds better...

[Former Member]

Hi,

If i have a special requirement to avoid calculating the dividends for the minority interest portion so that all 100% of the dividends are to be posted to the group company, how can i configure that?

[Former Member]

Hi,

I have a requirement to avoid minority share dividend apportionment and post all dividends to the group. Can this be configured in BCS?