Calculation of minority interest in matrix organization structure

[Former Member]

Hello-

We are currently implementing sem-bcs and have a matrix organization structure in place. We use company code and profit center as consolidation units. Company code being the currency carrying unit.

We are facing an issue in minority calculation-

Let us take the following example -

Investee A - books equity in pc A

Holding entity B books investments in pc B

The above information were entered in AFD and was also pulled in BCS as RFD..

The first consolidation happens as per our expectations.

For subsequent consolidation, the retained earnings account (additions movement) could have multiple profit centers. The system calculates minority interest correctly for combination of retained earnings addition @ PC A. However for all other combinations (I.e retained earnings for PC other than A), the system treats the entire amount as minority interest (even though that's not the case)..

Kindly advise.

Thanks!

[dan_sullivan · Accepted solution]

Make sure that the profit center hierarchy has the other profit centers with the same parent in the same cons group or sub cons group.

[Former Member · Accepted solution]

Hi,

Thanks for your reply...

The PC hierarchy is already in place..I maintained Additional Financial Data for the other combinations (of Cons Unit and PC) with 100% share and zero value. The system considered that and calculated minority interest correctly.

I wish to know if the above approach is ok..

Thanks

[dan_sullivan · Accepted solution]

That approach sounds correct to me - as long as the minority interest is correct in all cases.