Cons of Investment & Equity Holdings

I am uncertain about how Cons of Investment and BCS reporting handles Equity held (minority) entities.
It is my understanding that instead of including all of the line items as with majority owned entities, the equity held entities are only accounted for with the Investment and proportional share of earnings.
When the entity in included in BCs with the entire balance sheet and P&L accounts, how does the reporting/system know to exclude this, or is it eliminated as part of Cons of Investment?
Any light you can shed on this for me is greatly appreciated.

I have the answer. The BCS virtual infocube for reporting has logic that reads the accounting technique assignments and determines what to include and exclude for this.

Similar Messages

Cons Group Changes & Divestiture with Equity Holdings

In the scenario with cons unit hierarchy below, company A is the parent of company B and B is the parent of C and D. B is accounted for using purchase method, while C and D are equity method.
Cons Group A
     Cons unit A
     Cons group B
          Cons unit B
          Cons unit C
          Cons unit D
Company B is sold, along with its subsidiaries C and D. In periods previous to the divestiture, there are intercompany transactions between B, C and D, for which eliminations are recorded at posting level 20. For standard reporting these eliminations are ignored for both cons groups A and B due to C and D using equity method.
In Cons of Investment settings, Posting level 20 records are not included in location of values, calculation base.
In the period of divestiture, the cons group changes for posting level 22 are created. However, these are recorded directly to cons group B, and are therefore also included in reporting for cons group A. This is causing a problem because the reports exclude the level 20 records but include the offsetting level 22 records.
Has anyone dealt with this and if so how?
Am I missing something?
Thanks for any experiences relating to this and/or suggestions!
Dan

Just extending the same point,
system will generate the 22 PL records where in both
consolidation unit and partner unit of the group participating
in eliminations follow purchase method.
In your case B (parent company ) is following purchase
method and investee are following equity method.
so 22 PL records are not expected.
since it happened other way , some wild idea may be to check
whether there is any method change during consolidation
interval.

Investment , equity data

Does all intercompany investment, equity data in ECC has to be captured with trading partner field to execute the COI function in BCS?
Suppose it is not captured with trading partner field, what are the alternative options.

Exactly...if you have:
PL00 CompA   InvInSubs   InvesteeBlank    DR 100
just book
PL10 CompA   InvInSubs   InvesteeBlank    CR 100
PL10 CompA   InvInSubs   InvesteeB        DR 100
The CoI will consider PL00 --> 20 as long as you check off the manual doc types in the Location of Values portion of the CoI Settings in the WB.
EDIT: Just to be clear, when you say "Equity Data in ECC" I assume you are talking about reported data from the GL (PL00). Not to be confused with Equity Data and Investment Data in the BCS Additional Financial Data (if you're using AFD).

Opening Balance of Investment/Equity.

As we are migrating to BCS system the investment by one entity is not match with equity in another intercompany.
I understand when we execute the COI function initially after loading the opening balance ,the balancing entry goes to Goodwill.
But can these entry be adjusted against the Retained earning due to business scenario since the aquisition is old one, except for BCS.
The question is:
1. it normal to post such entry to 'Retained earnings' using level 30 manual entry.
2.Can the COI function be configured in such a way for selected company codes that these differences go to 'Retained earnings' automatically than update the goodwill.
3.Can a reclassifcation function be used at level 30 to transfer such entry from Goodwill to retained earnings account.
Appreciate to share your experience..Points will be awarded will be helpful answers.

1. In many cases we use manual entry for posting level 30 adjustments. However I recommend you include the retained earnings at the time of go-live with the first consolidation AFD entries.
2. It may be possible (not sure) to use retained earnings as the goodwill account in the COI configuration and subsequently change it to the true good will account after the cut-over of first consolidation period. That is unless there is actually a situation where goodwill should be posted in the first period.
3. A reclassification could be used for this conversion. If so, I recommend the task be removed after the first period of using BCS, or the method be limited to the period and year of first consolidation with BCS. As with 2 above, this will not work if there is actually a situation where goodwill should be posted in the first period.

Journal for Equity Method

P owns 30% of S1. (using equity method)
Investment = 30.000 USD
Equity of S1 = 25.000 USD
S1 owns 70% of S2. (using purchase method)
Investment cost = 50.000 USD
Equity of S2 = 30.000
What is the journal of first consolidation in group S1 and group P?

I believe it should be as follow , right?
Cons group S1:
investment -50
equity +30
goodwill +10
minority interest liability -10
Anyway, thanks for your clarification. I also think in the same way. But my system provide wrong journal entry. It provides as follow for Cons group S1 :
Equity 30
MI equity -30
and there is no journal entry for cons group P.
Do you have any clue on this?
Thanks.

COI Investment data reading

if the AFD Investment data has to be read thru 'Totals' tables does it require that all ECC entry for investment need to have the Percentage of investment, Investee fields to be filled in? Can the system read the 'ECC Investment data' with out these fields?
Is there any other way to populate these fields when reaching from ECC to BI/BCS?
Is there any other additional fields to be captured in ECC for Investment entries other than above two fields?

Hi Eugene,
I really need your advice on my AFD things. Hope you can help
Now my Location Values of AFD are as follows:
Read Investment Data From : Additional Financial Data
Read Equity Data From : Additional Financial Data
Read Equity Holdings Adjs From : Additional Financial Data
The user is only performed "Impairment Test" for the goodwill.
So I only select : "Extraordinary Amortization of Goodwill & Extraordinary Amortization of Negative Goodwill" per method.
My question is, for first consolidation, what should I put in AFD manual data entry as first step to record investment, equity & the goodwill? Will the system calculate the goodwill automatically or we need to manually entered journal entry for impairment test?
Providing that the holding company owns 73% of its subsidiary.
Thanks a bunch

Reparenting - of equity consolidated units upward in hierarchy

Hi experts,
We're doing reparenting of a cons unit (upward in a hierarchy) : The scenario is explained as under:
There are two hierarchies in a single version. The consolidation units falling under both hierarchies are same. Difference being - H1 is a flat hierarchy with parent A and all other as subsidiaries (100% owned and purchase method consolidated)
H2: Has multiple levels (conso groups) with overall parent A. All other companies are equity consolidated (ofcourse parents in each group is assigned purchase method, ownership is again 100% of all units)
In H2: we're doing a reparenting. From a lower conso group(cons group CGB with parent B) a unit(unit C) is moving to the top conso group(cons group CGA with parent A). The master data changes in both conso groups have been made(period/yr of divestiture and period/yr of acquisition set in the sender group and receiver group respectively; added the cons unit C in CGA group).
The organizational change logic is being used.
After the conso group change task and COI task are run, in the report there is a difference in the equity PY surplus at level A - overall parent) in both hierarchies.
There are two equity pickups - A/c1 and A/c2
The opening balances on these accounts are getting reversed in the divestiture period in old parent.
Whereas the PY - RE(Previous year - Retained earnings) account is not getting reversed (in itself) but the balance is being posted to COI:Clearing item (COI clearing item defined in COI settings->Appropriation of retained earnings -> Net income tab)
1. The client doesnt want PY equity surplus to change. In H1 , it is not changing (not reversing) whereas, in H2 it is reversing in the same accounts - balancing to zero.
2. They'd ideally want the PY surplus to goto the COI clearing.
They'd like the system to do this entry and not fix this by doing a manual PL30 journal.
Can you tell me if there is anything in the configuration of COI that can fix this issue?
Why is the system behaving differently for A/c1 (and A/c2)and PY - RE account?
Another thing, when I look at the COI documents posted in the H2 hierarchy, I see the A/c1 and A/c2 (scopes of data for equity method) as double the amount in the new cons group (equity holdings data) whereas in the H1 (where only a total transfer doc is posted) I see the accounts (as part of equity data) with the actual value.
Thanks, AJ
Edited by: A J on Nov 17, 2009 3:17 PM

Thanks Dan.
Appreciate if you can help on the below points as well.
1. As part of divestiture/transfer postings: The system is reversing some Previous Year(PY) equity accounts into themselves. How can we get the system to eliminate them by posting to COI Clearing account. Basically, we dont want the PY accounts to be touched?
For the Retained earnings - PY account, the system is actually posting to COI clearing account.
These PY accounts are part of some scopes for equitization.
Is there any link between the "balance carry forward" - list of items table and the divestiture postings?
Does the system check this table while posting/reversing the equity(PY) accounts?
2. I want to understand the sequence in which the system posts the documents at the old parent and new parent (group) level.
The same activity number is there for Total Divestiture, total transfer documents posted at new parent level and total divestiture document posted at old parent level.
Does the system follow bottom up approach? Thereby creating total divestiture document at old parent level.
Followed by documents at upper level (new parent level)
Also , at the upper level(new parent level), does it post documents in the way they are shown in the log? (We havent changed the default sequence maintained in UCWB - COI settings). so it will post first consolidation doc, followed by total divestiture, followed by total transfer docs at the new parent level?
Is this the reason for the double value being posted at new parent for equity holding data?
Will studying the statistical items (corresponding to eliminated equity holding items) be relevant here to understand why at upper level there is double the value being posted by system?
Thanks.

Total transfer of equity consolidated unit using organizational change

Hi,
We have a scenario where we are doing total transfer of an equity consolidated unit (100% owned) from one company(old parent) to another (new parent)
The new parent is one level above the old parent in the hierarchy.
We've used organizational change logic and have set the divestiture dates/flag in the sender consolidation group and accordingly first consolidation dates/flag/OC number in the receiver consolidation group.
The investment AFD is submitted with "total transfer" with OC number.
There are multiple scopes of reported data for equity method in our configuration.
Each scope(equity pickup) is inturn created by reclassifying several equity accounts to a single BCS only item(the scope item)
When we run COI, the system posts one total divestiture document at the old conso group (where old parent is situtated) and posts a first consolidation, total divestiture, total transfer documents at the new conso group level (which is one level above the sender conso group)
The total divestiture document at upper level is reversing the divestiture document posted at old parent.
The first consolidation document jas only statistical items posted in it.
The real document to check is the "Totals transfer document" which actually reads the investment (at old parent and new parent) , the equity holdings adjustment data(the scope items) and adjusts the investment in subs at new parent with offset going to divestiture account but of double the value than the expected scope vlaue.
Issues faced:
Q1. Consolidation group change tasks (at PL02, 12, 22) are not posting any documents. Is there an issue? Since I am using these tasks for the first time and dont know if this is possible.
Q2. The total transfer document is reading the equity holdings data as double the expected value( for each of the scopes of equity method). What could be the possible reason? How to fix this?
Q3. I would appreciate if someone can clarify what kind of postings the system makes as part of divestiture/transfer in case of equity consolidated unit transfer.
Please help!
Thanks,
AJ

Thanks Dan.
Appreciate if you can help on the below points as well.
1. As part of divestiture/transfer postings: The system is reversing some Previous Year(PY) equity accounts into themselves. How can we get the system to eliminate them by posting to COI Clearing account. Basically, we dont want the PY accounts to be touched?
For the Retained earnings - PY account, the system is actually posting to COI clearing account.
These PY accounts are part of some scopes for equitization.
Is there any link between the "balance carry forward" - list of items table and the divestiture postings?
Does the system check this table while posting/reversing the equity(PY) accounts?
2. I want to understand the sequence in which the system posts the documents at the old parent and new parent (group) level.
The same activity number is there for Total Divestiture, total transfer documents posted at new parent level and total divestiture document posted at old parent level.
Does the system follow bottom up approach? Thereby creating total divestiture document at old parent level.
Followed by documents at upper level (new parent level)
Also , at the upper level(new parent level), does it post documents in the way they are shown in the log? (We havent changed the default sequence maintained in UCWB - COI settings). so it will post first consolidation doc, followed by total divestiture, followed by total transfer docs at the new parent level?
Is this the reason for the double value being posted at new parent for equity holding data?
Will studying the statistical items (corresponding to eliminated equity holding items) be relevant here to understand why at upper level there is double the value being posted by system?
Thanks.

Equity to Purchase

Guys,
When we change accounting method from equity to purchase then system will automatically post the prior equity to the account "Net income - Method change".
For example :
2008, the equity as below :
Share capital -1000
Share premium -1500
and when i change the method from equity to purchase in 2009, system will reverse the equity and put it all in one "net income-method change" account.
the question is :
How to separate the net income - method change for both of equity.
So I should have 2 account for the net income method for the result.
Hopefully i explain the problem well
Thanks in advace.

Thanks for replying.
For example :
in configuration "appropriation of RE" -> net income , i set net income-method change = FSI "RE method change"
2008 , I assign the cons unit to equity method.
I upload equity data as follow :
Share capital -100
Share Premium -20
2009, I change the accounting method from equity to purchase.
When i run the CoI task, system will automatically put +100 +20 =120 in RE method change.
The question is, can i separate the amount? I need the system to put 100 to share capital and 20 to share premium (because equity in subsidiary should be zero in consolidation b/s report).
Thanks.

Equity roll-forward scripting

 I've inherited an HFM application that has been built by two previous consultants. The client wishes to report Common and Preferred Stock beginning balances at historic cost in entity currency, parent currency and reporting currency (USD) with consolidations and eliminations of intercompany equity holdings. My thought is to write two separate scripts the first being to execute the rollforward. The method originally used to script for this looked like; If HS.Value.Currency = "USD" then If HS.GetCell("A#232001_H") <> 0 Then HS.Exp "A#232001=A#232001_H" Else HS.Exp "A#232001=P#Last.Y#Prior" End if'getcell If HS.GetCell("A#231001_H") <> 0 Then HS.Exp "A#231001=A#231001_H" Else HS.Exp "A#231001=P#Last.Y#Prior" End If'getcell The "_H" accounts contained a value that had been entered by one of the consultants and did not match the data in the actual accounts. This "_H" method also does not roll the amount that should be booked in subsequent years forward. What I'm thinking might be the quickest and easiest solution is to try to write a script that simply replaces the beginning balance for common stock (A#232001) with the value of Total Common Stock (A#CommStockTot) for the last period, of the prior year. What I'm wondering is how best to write this. This is what I've come up with so far and I'm not fond of it. If HS.GetCell("A#CommStockTot.P#Last.Y#Prior") <> 0 Then HS.Exp "A#CommStockTot.P#Last.Y#Prior) Else HS.Exp "A#CommStockTot.P#First.Y#Cur" and a similar piece for the Preferred Stock (A#231001) Is there a simpler way to do this that would work like a REPLACE command or UPDATE Query? 

No ,there is no simpler way .Got to use Hs.ExpPeacenaveen

BCS 604 SP6 - Change to Consolidation Group extra features

Hi All,
We've upgraded from SP0 to SP6 and noticed some new options for CCG config:
IN UCWB we have rthe following new options:
1. under Consolidation area --> Settings --> Consolidation Functions used, we have:
(checkbox) Separation of Goodwill from Investment (ERP 2005)
2. Under Changes to Consolidation group we had:
- Selected Items
- Task
- Document Type
- System Utilization - NEW
> (checkbox) Other Comprehensive Income in Total Divestiture
Help on "1" reveals:
If you select this checkbox, you enable the separation of goodwill from the investment relationship.
Use
If the Separation of Goodwill from Investment function is active, you can manually enter a goodwill entry on a separate consolidation unit for the Reclassification of Treasury Stock activity. The system does not post a minority interest to effects from valuation allowance or currency translation. The system suppresses the posting of minority interests on the assumption that no investment and equity data exist for a separate consolidation unit for which you have entered a manual goodwill entry. (However, the system does not check whether investment and equity data on the separate consolidation unit really do not exist.)
Help on "2":
Other Comprehensive Income in Total Divestiture
If you select this checkbox, you enable the system to post the other comprehensive income in the Total Divestiture activity with an effect on net income.
Use
If the Other Comprehensive Income in Total Divestiture function is active, the system posts the group value of the other comprehensive income in total divestiture to the income statement.
Dependencies
You define the items for other comprehensive income as a subset of the equity items in Equity Data Customizing on the Other Comprehensive Income tab page. You specify there for each item for other comprehensive income the relevant posting item in the income statement.
Anyone used either of these extra features,
found them useful, any problems?

I have not used the 1st "Separation of Goodwill".
The second feature is needed when Cons of Investment (COI) is not used. I actually configured Cons Grp Chgs with this and subsequently implemented COI in the same system. What happened is that this feature disappeared from Cons Grp Chgs and reappeared in COI > Settings > Appropriation of Retained Earnings.
I hope this helps.

XML-XSLT problem. Please help

I want to apply an XSLT to my XML to retrieve an element "firstName"
My XSLT is as follows:
<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="html"/>
<xsl:template match="customer">
<html>
<xsl:apply-templates/>
</html>
</xsl:template>
<xsl:template match="customerBank">

<xsl:value-of select="preceding-sibling::customerAddress/street"/>

</xsl:template>
</xsl:stylesheet>
Expected Output should be:
Jonathan
Chadrick
Antonia
Diane
Jennifer
Andrea
Michael
Mario
My Output is :
JonathanGold32
Jonathan
First National TrustEarthfarm Investment BankEF00123456789123456789012VISA ChadrickPowell45
Chadrick
First National TrustEF00123456789123456789012VISASnowboarding AntoniaSuares28
Antonia
Investment Corporate HoldingsEF00123456789123456789012VISAKayaking DianeChristoff31
Diane
Investment Corporate HoldingsEF00123456789123456789012VISABeach JenniferWestlein41
Jennifer
Investment Corporate HoldingsEF00123456789123456789012VISAKayaking AndreaDesroaches33
Andrea
Investment Corporate HoldingsEF00123456789123456789012VISATrekking MichaelSeva21
Michael
Investment Corporate HoldingsEF00123456789123456789012VISACity breaks MarioGinelli34
Mario
Investment Corporate HoldingsEF00123456789123456789012VISAKayaking
Why are the information from other node coming. Please clarify.
My XML is
<?xml version="1.0" encoding="UTF-8"?>
<?xml-stylesheet type="text/xml" href="cuetomer.xml?>
<customerList xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
 xsi:noNamespaceSchemaLocation="customerList.xsd">
 <customer customerID="jgol001">
 <customerName>
 <firstName>Jonathan</firstName>
 <lastName>Gold</lastName>
 <age>32</age>
 </customerName>
 <customerAddress>
 <street>4801 Long Street</street>
 <city>Earthfarm</city>
 <country>USA</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>First National Trust</bankName>
 <bankName>Earthfarm Investment Bank</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 </customer>
 <customer customerID="cpow001">
 <customerName>
 <firstName>Chadrick</firstName>
 <lastName>Powell</lastName>
 <age>45</age>
 </customerName>
 <customerAddress>
 <street>4802 Long Street</street>
 <city>Earthfarm</city>
 <country>USA</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>First National Trust</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 <vacationPref>Snowboarding</vacationPref>
 </customer>
 <customer customerID="asua001">
 <customerName>
 <firstName>Antonia</firstName>
 <lastName>Suares</lastName>
 <age>28</age>
 </customerName>
 <customerAddress>
 <street>4803 Long Street</street>
 <city>Earthfarm</city>
 <country>France</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>Investment Corporate Holdings</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 <vacationPref>Kayaking</vacationPref>
 </customer>
 <customer customerID="asua006">
 <customerName>
 <firstName>Diane</firstName>
 <lastName>Christoff</lastName>
 <age>31</age>
 </customerName>
 <customerAddress>
 <street>4803 Long Street</street>
 <city>Earthfarm</city>
 <country>Germany</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>Investment Corporate Holdings</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 <vacationPref>Beach</vacationPref>
 </customer>
 <customer customerID="asua005">
 <customerName>
 <firstName>Jennifer</firstName>
 <lastName>Westlein</lastName>
 <age>41</age>
 </customerName>
 <customerAddress>
 <street>4803 Long Street</street>
 <city>Earthfarm</city>
 <country>UK</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>Investment Corporate Holdings</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 <vacationPref>Kayaking</vacationPref>
 </customer>
 <customer customerID="asua004">
 <customerName>
 <firstName>Andrea</firstName>
 <lastName>Desroaches</lastName>
 <age>33</age>
 </customerName>
 <customerAddress>
 <street>4803 Long Street</street>
 <city>Earthfarm</city>
 <country>USA</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>Investment Corporate Holdings</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 <vacationPref>Trekking</vacationPref>
 </customer>
 <customer customerID="asua003">
 <customerName>
 <firstName>Michael</firstName>
 <lastName>Seva</lastName>
 <age>21</age>
 </customerName>
 <customerAddress>
 <street>4803 Long Street</street>
 <city>Earthfarm</city>
 <country>UK</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>Investment Corporate Holdings</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 <vacationPref>City breaks</vacationPref>
 </customer>
 <customer customerID="asua002">
 <customerName>
 <firstName>Mario</firstName>
 <lastName>Ginelli</lastName>
 <age>34</age>
 </customerName>
 <customerAddress>
 <street>4803 Long Street</street>
 <city>Earthfarm</city>
 <country>Canada</country>
 <phoneNumber>123-456-7890</phoneNumber>
 <emailAddress>[email protected]</emailAddress>
 </customerAddress>
 <customerBank>
 <bankName>Investment Corporate Holdings</bankName>
 <IBAN>EF00123456789</IBAN>
 <creditCardNum>123456789012</creditCardNum>
 <creditCardType>VISA</creditCardType>
 </customerBank>
 <vacationPref>Kayaking</vacationPref>
 </customer>
</customerList>
Thanks in advance
Amit

Thanks for the reply.
I was trying to understand the XPath expression axes and was trying to achieve the same by using preceding-sibling.
After some reading I was able to get the desired result by applying the following XSLT
<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="html"/>
<xsl:template match="customerList">
<html>

 
<xsl:apply-templates select="customer/customerAddress"/>


</html>
</xsl:template>
<xsl:template match="customerAddress">
 
<xsl:value-of select="preceding-sibling::customerName/firstName"/>

</xsl:template>
</xsl:stylesheet>
Thanks a lot. May be it will be helpful to others.

Appopriation of retained earnings

Hi,
Can anybody help me out to understand how system,
behaves differently for ARE in balance sheet and ARE in
income statement.?
is it mandatory ,that if I selected ARE in income statement
then all my ARE accounts like group adjustments and
minority adjustments should also be income statement
accounts.?
Can I say that I can work with subsequent consolidation
without activating ARE itself ?

The appropriation of retained earnings can either be integrated on the balance sheet or be stated as an addendum to the income statement.
In the former case, a FS item at the end of the income statement discloses the transfer of the annual net income to the balance sheet.
In the latter case, the transfer item is located at the end of the retained earnings statement and states the retained earnings.
Which method is used affects the retained earnings item on the balance sheet as well as the balance to be carried forward.
For subsequent consolidation in Cons of Investment you should indicate an item accourding to the ARE setting in the Cons Area. Hence if Balance Sheet use Balance Sheet item, if Income Statement us Income Statement item.
ARE for COI must be configured for Net Income. Bonus Payments and Distribution of Dividends is optional.

Currency translation in UCMON

Hi,
We have typical issue in currency revaluation in BCS. While running the currency translation in UCMON for some of entities we found abnormal figures in the gain/loss. After further analysis we found out that the amount in Retained earnings-previous year a/c is getting added up everytime when we run the translation.
This amount is showing under accoung Currency translation adjustment which is hampering the financials.
We have cheked the CT methods & consol.unit settings which seems to be fine. We also ran the balances c/f.
any clue from gurus on what might went wrong?
regds,
sai

Hi Dan,
Below are the details.
Step : Invest&Equity
Source Key fig : /1FB/CS_TRN_LC Period value LC
crcy Transl. key : 20 No modification of target key fig
exch. rate determination : 02 exch rate ind 1 Current rate
Single selection : I have the specific items including retained earning - py
Differences : Debit & credit mapped to exchange gain/loss a/c
Hope I gave all details.
thanx for your help
regds
sai

Manual COI entries

Incase the COI entries has to be entered thru manual elimination entry of investment /equity do we need to maintain the accounting techniques at all?
Is the maintainence of accounting technique applicable for automated elimination only...

Accounting techniques impact the virtual cube's interpretation of the different posting levels. I'm not sure what happens if they aren't maintained (I would guess BCS considers everything to be Purchase Method).
If you have Equity Method units that's you're manually booking a pickup for, you'd want to set the accounting techniques correctly in order to assure the PL00 & 10 are showing up in the reporting, and that no PL20 elimination entries are being included as well.
- Chris

Cons of Investment & Equity Holdings

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