Figure 3.6 illustrates fields related to consolidation in Entity Code Maintenance (25.3.1.1).
Fig. 3.6
Entity Code Maintenance (25.3.1.1)
Consolidation Entity. Indicate if this entity is used for GL consolidation.
No: This is a standard entity that is not used for creating consolidated financial reports.
Yes: This is a consolidation entity. Additional frames display in which you can specify the subsidiary entities that are part of the GL consolidation and assign each a consolidation percentage. When you specify Yes, the system verifies that the entity is not currently associated with a bank or a site.
Entity Type. Enter a code identifying the entity type. The system validates this field against values defined in Generalized Codes Maintenance for field en_type.
Use type codes to group related entities for consolidation. You can select subsidiary entities to be part of a consolidation entity by type code.
Examples of entity types could include: • Fully owned subsidiary
• Associated company • Local GAAP entity • US GAAP entity • Common GAAP entity
When you indicate that an entity is a consolidation entity, additional screens display. You can add subsidiary entities one at a time or select multiple entities based on various criteria. The screen navigation varies depending on your choice.
Fig. 3.7
Entity Code Maintenance, Assigned Subsidiaries
Option. Enter 1 if you want to specify subsidiary entities one at a time.
Enter 2 if you want to choose from a group of entities based on selection criteria that you specify, such as range of domains, entity codes, entity types, or currencies.
If you choose 1 (Single), the Assigned Subsidiaries frame displays (see Figure 3.11). Use the Add key or command to display the Add Subsidiary frame as in Figure 3.8.
Fig. 3.8
Entity Code Maintenance, Add Subsidiary
Specify values in the following fields:
Subsidiary Entity. Enter a code identifying an entity that forms part of this GL consolidation set. The entity must belong to the specified subsidiary domain.
You can include the same source entity in more than one consolidation set, to support multiple reporting views of your business. However, you cannot reference the same entity more than once in this consolidation set, either directly or indirectly.
Note The same entity code can be referenced twice only if it is associated with different domains.
Subsidiary Domain. Enter the domain code of the subsidiary entity in a GL consolidation set. This code must be a valid, active domain associated with the current database and assigned to your ID in User Maintenance.
Note You cannot reference a domain associated with a connected database.
Summarize. Indicate whether posted GL transactions in the
subsidiary entity are consolidated as detailed or summarized unposted transactions in the consolidation entity.
No: Each GL transaction is consolidated in detail.
Yes: The system summarizes all positive GL transactions for the same daybook code or project code (and matching account, sub- account, and cost center) into a single unposted debit GL transaction. All negative GL transactions are summarized into one credit
transaction.
Consolidation Percentage. Specify the percentage of the subsidiary entity transactions that will be consolidated into the general ledger of the consolidation entity. The default is 100%. This value cannot be over 100%.
Typically, when a subsidiary entity is more than 51% owned by the parent company, 100% of the subsidiary transactions are shown in the books of the consolidation entity. However, when ownership is less than 51% and the national accounting rules permit it, proportional consolidation can be used.
In this case, enter the actual ownership percentage in this field. GL Consolidation then multiplies the amounts of the subsidiary entity GL transactions by this percentage.
¶ See “Viewing Transaction Detail” on page 111.
Even when you set Summarize to Yes, detail about individual transactions is retained for historical reporting. Use Inquiry by Account with Drill Down (25.13.20) to view these details as needed.
Note This setting has no effect on accounts defined with a currency translation index of 4 (historical). Transactions for these accounts are never summarized.
Press Go to add the entity. It displays in the frame above. You can add as many entities as you want to this consolidation set.
If you choose 2 (Multi), the frame in Figure 3.9 displays.
Fig. 3.9
Entity Code Maintenance, Subsidiary Multi Selection
When you add multiple entities, you enter selection criteria for a range of domains, entities, entity types, and currencies. You can choose to include or exclude consolidation entities in the selection. You can also specify whether the matching entities should be selected by default for inclusion in the set.
Note Only entities that belong to the current database display for selection, regardless of the range you enter.
Include Consolidation Entities. Enter No if you want to exclude entities with Consolidation Entity set to Yes; otherwise, enter Yes.
Select All. Indicate whether you want entities that match the selection criteria to be selected by default.
No: Matching entities display unselected in the next frame. You must select the ones you want.
Yes: Matching entities display already selected in the next frame. You can simply press Go to continue.
When you press Go, the search results display in a screen like the one in Figure 3.10. You can then select or deselect individual entities as needed.
Fig. 3.10
Entity Code Maintenance, Unassigned Subsidiaries
When you press Go again, all selected entities are added to the consolidation set and display in the Assigned Subsidiaries frame.
Fig. 3.11
Entity Code Maintenance, Assigned Subsidiaries
You can modify the summarization value and consolidation percentage in this frame as needed.
Note If the subsidiary entity is also a consolidation entity in another consolidation set, an asterisk (*) displays in the CE (Consolidation Entity) column.