Consolidation Method

Are there default consolidation methods in HFM? or do we have to write consolidation methods for every type of ownership?

thanks kelly.
where can i see the default consolidation methods? In the Ownership management screen the methods drop down appears blank in our installation. When the metadata was loaded ( Classic application) the consolidation method checkbox was not checked.
Does these consolidation method also handle equity/investment elimination automatically? I was given to understand that the equity pickup feature has been added by oracle only in their latest fusion release ( 11). we are using 9.3.1.

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Different consolidation methods for one entity on one scenario

Dear experts,
How can I have different consolidation methods for one entity on one scenario?
One entity is going from proportionate to equity method. We would like to check variations due to this change.
Best regards,
Benoit

Hi Benoit,
How's things?
Managing the consolidation methods is based on the setup of your consolidation rules.
However, the first place that you should look is the Ownership Management. Select the parent of the entity that you work to process. In the screen, you will be able to see the available methods and the ownership. All these settings are related with the consolidation rules available in your application.
Regards,
Thanos
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Consolidation methods

Dear HFM professionals,
Can somebody please kindly clarify a few questions regarding the automatic attribution of consolidation methods to nodes:
1) Is there any strict desription of the property "Control" in consolidation methods' properties? I failed to find one in admin or user guide. How exactly does this setting affect the attribution of consolidation methods to nodes? I do understand that when this property is set to "Full" then one of the condition of automatic attribution is that the control percent for the company through voting shares have to be 100%. However, all other options seem vague.
2) What is the purpose of Consol1, Consol2 and Consol3 accounts? It is stated in documentation that these are for consolidation methods applied. I can't figure out how it works.
3) Is it possible to write a rule for method attribution? If so, which subroutine shall contain it?
...or maybe you could just provide me with the solution on the specific task. What I'm trying to accomplish is the following: I have 2 types of nodes, where those with effective ownership percent (POWN) more than 50 have to be fully consolidated, whereas those with less ownership are considered associated companies and have to be consolidated through equity method. I would like to not use voting shares at all since this parameter is somehow redundant in my case. I just want the method to be attributed automatically to node on basis of the rule described.

Hi Benoit,
How's things?
Managing the consolidation methods is based on the setup of your consolidation rules.
However, the first place that you should look is the Ownership Management. Select the parent of the entity that you work to process. In the screen, you will be able to see the available methods and the ownership. All these settings are related with the consolidation rules available in your application.
Regards,
Thanos
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Defining consolidation method

Hi,
I would like to ask about consolidation method. I have hierarchy as follow:
1. Company A owned Company B for 70%
2. Company A owned Company C for 45%
3. Company D owned B for 0.2%
In hierarchy above, B will be using Full Consol, C will be using Equity Method (only absorb Net Income) and D will be using Cost Method (only calculate investment). When do this setting in HFM, where should i put % for PCON, POWN and PCTRL ? does HFM will read Method that i setup regardless how many % i setup in those 3 % ?
Appreciate your reply.
Thanks,
-Anna

Hi Anna,
Sample books, use specific methods, which means that the author has to define what is input to the method (is it POWN, or is it SharesOwned/SharesOutstanding?) and what kind of processing does. Methods like those you describe "FullMethod", "EquiMethod", "CostMethod" are just names. Without having documentation on how they work, or the corresponding part of the code in the rules file, its hard to tell what they do and what they require of you to input.
The specific methods I use, are quite simple, they need to specify only the Method, PCON and POWN. So the input for the consolidation in my case would look like:
Company B -> [Method] = FullMethod -> PCON 100% -> POWN 100%
Company C -> [Method] = EquiMethod -> PCON 100% -> POWN 45%
Company D -> [Method] = CostMethod -> PCON 0% -> POWN 0.2%
and the PCON in EquiMethod would be ignored for all accounts but capital and reserves, and the PCON/POWN for the CostMethod would not be handled at all, it would be just information.
However, the above is just a description of my rules. I could have written a set of rules that use the SharesOwned and SharesOutstanding as an input to calculate POWN and then depending on the POWN value the rules would decide if Full, Equity or Cost calculations would be performed.
As per the consolidation calculations, only the POWN is needed for calculating the goodwill, non-controlling interests and the group share of profits/reserves. The figure in POWN also depends on the entity structure, the simplest case being to input it ready to HFM into the POWN account.
So, the correct answer to your questions can be given only by the party that has implemented the rules, or if you can read and understand the rules code.
Regards,
Kostas

BCS different consolidation method in a hierarchie

Hello,
      We have the following hierarchy of consolidation units:
      Company 1 (purchase method) -> Company 2 (equity method) -> Company 4
      (equity method)
      When we execute consolidation of investments BCS ignores the investment
      of company 2 in company 4.
      How can we solve this scenario?
      Thank you in advance.

Hello,
Your question sounds like:
I want to load data for the company. But, data is not loaded. What would be the reason?
The reason might be hidden in thousands of settings. Whould you want us to guess?
Or you'd describe your situation as detailed as possible?
The more meaning detailes you provide the faster you may get the answer.
Otherwise such requests, most likely, will be just ignored.

New consolidation method: complementay consolidation

Dear collegues,
Does somebody know what is Method "Complementary Consolidation" used for? Is it a legal method or maybe a correction of previous legal reporting for consolidated data and hence for re-reporting?
Thanks in advance!
Rushid

IMHO, it must be one of the methods reserved by SAP for future development that do not work at all yet.

Consolidation- Method changes

Hi
During method change whether the documents are posted automatically or manually? Further whether these documents needs to be inversted at the subsequent period ....

Since you'll switch to Equity method, then, yes, for Equity Adjustments.
Flags:
DABP - Switching immediately at the beginning period. RE for this period is not taken into account.
DAEP - RE is apportioned according to Purchase method. Then goes switch to Equity.
For the half month with Purhase method the Parent company earned its share of RE of divested company. So, IMHO, if you set DABP then calculate and add some more equity adjustment, IF DAEP - deduct some.
Of course, you should estimate the impact of switching methods on increase or decrease in your parent company net profit.

No consolidation, Equity Method

Hi Guru:
What is the accouting technique in BCS COI 'No consolidation, Equity Method' mean? Is it same as equity method?
Thanks.
Eric

yes, it is the same as equity method.
i think that "no consolidation, equity method" is an error message when you do data entry for COI ? is it right?
if yes, then it means no consolidation method (such as equity method) that are assigned to accounting technique.
If you're already assign the method, but the error still exist, please let me know.
Hope it can help.

Local Currency in the Consolidation

Hi BCS Guru,
Can you help me about this problem :
In BCS (SEM 400, SAP_BW 3.5) I would like to use the local currency in the profit center for consolidation method .
This local currency will be created in BW and synchronized ( tcode UGMD_SY_MD) in BCS.
In order to do this, i had the infoobjet local currency in the profit center attributes in BW and regenerated the data model in BCS (tcode UCWB).
In the workbench in BCS (tcode UCWB, Masterdata, Consolidation Units) the local Currency is defined twice ( one time in the in the tab DataEntry and other time in the tab Other attribute )
My problem is that i dont know how to initialized the local Currency (defined as attributes in the tab DataEntry ) with the synchronization ( tcode UGMD_SY_MD) only the local Currency in the tab Other attribute is initialized .
I need the local Currency (defined as attributes in the tab DataEntry) in the consolidation method so please could you help.
Thanks
Matihi

Yes, Matihi,
it's clear now. That local currency that is sitting in the DataEntry tab is a system default one. It's not the attribute you entered (attribute is on the Others tab).
This local currency key is 0CURKEY_LC infoobject. If pressing F4 in the field for local currency of your PC brings nothing, then you need enter some values for this currency. The infoobject itself has a reference unit 0CURRENCY. 0CURKEY_LC will inherit all master data entered for 0CURRENCY.
So, all you need is to populate 0CURRENCY with currencies you need.
To do this use a usual way through SPRO t-code:
SAP Netweaver - General settings - currencies. execute those functions that seem appropriate. First of all, certainly, "Check Currency Codes" option.
Good luck and keep us posted!

Can I use function "HS.NODE.METHOD" in Calc type?

Can I use this statement in "Sub Calculation"?
IF HS.NODE.METHOD("") = "EQUITY35" THEN
END IF
I try to use it but when I run consolidation, it's always show "aborted"
Thanks in advance
Refer to Administrator's Guide:
Method
Gets the consolidation method for the specified member. If there is more than one non-zero
value, the system returns the first one found. This function can be used in these types of rules:
l Calculation
l Translation
l Consolidation
l Allocation
Syntax
HS.Node.Method("POVExpression")
where POVExpression is a combination of Scenario. Year, Period, and Entity members.
Return Value
A String that specifies the consolidation method for the specified point of view.
Example
In this example, if the method for the point of view is GLOBAL, then statements between the
If...Then and End If statements are executed.
If HS.Node.Method("S#Actual"."Y#2009"."P#January". "E#Regional.Connecticut") = "GLOBAL"
Then
End If

Hi,
Please see the below link for the rules functions.
http://docs.oracle.com/cd/E17236_01/epm.1112/hfm_admin.pdf
And also the following KM IDs, might be helpful as well.
Financial Management Rule Function Hs.Node.Isbase Returns True Even When the Entity is Inactive (Doc ID 1330580.1)
Hs.Node.Method() generates "Expected Identifier" Error (Doc ID 1274123.1)
Hope this helps,
Thank you,
Charles Babu J
Edited by: CJX on Dec 14, 2011 1:40 AM

Error when running consolidation

Hi,
I am running a legal consolidation with this script logic:
*RUN_PROGRAM CURR_CONVERSION
      CATEGORY = %CATEGORY_SET%
      GROUP = %CONSOLVIEW_SET%
      TID_RA = %TIME_SET%
      RATEENTITY = GLOBAL
*ENDRUN_PROGRAM
*RUN_PROGRAM CONSOLIDATION
          CATEGORY = %CATEGORY_SET%
          GROUP = %CONSOLVIEW_SET%
          TID_RA = %TIME_SET%
*ENDRUN_PROGRAM
However, on executing the package I get an error:
RUN_LOGIC:Accounts not found in application COWNERSHIP
COWNERSHIP is the ownership cube but it does have an account type dimension (called OWNACCOUNT).
Has anyone seen this before?
Thanks,
Arnold

Hi,
Are you maintained data in Ownership application? If yes,check OWNACCOUNT contains data or not?
OWNACCOUNT should be maintained as below:
METHOD        Consolidation Method
PCON             Controlling Percentage
PGROUP        PGROUP
POWN           Ownership Percentage
hope it helps...
regards,
Raju

Proportionate Consolidation

Hi,
I am using BPC for financial consolidation and I need to do proportionate consolidation for one entity, say Entity J. What this means is that Entity J is owned 50% by the parent. During the consolidation process, Entity J will upload its full trial balance into BPC but the parent will only aggregate 50% of Entity J's trial balance to the parent entity.
Is aggregating only the proportionate percentage owned of an entity to its parent automatically done in BPC?

Hello Lilia
I appreciate Lilia for posting challenging question , which hardly happens in this forum.
Although I used purchase method, I havenu2019t had opportunity to use proportionate consolidation method (as there was no need in all of my projects). However after going through the new stuff available in SEM 6.0, I think you are right in your conclusions (....earlier reclassifications more simpler and suitable when proportionate share is 50%....)
New innovative way seems to be more technically advanced (unlike in earlier versions proportionate share is maintained at customization level) as it makes use of document type and statistical items to record initial proportionate share as well as subsequent changes.
By the way which version do you use?
Cheers
Ambadas

Consolidation unit's hierarchy can not be organized well in BCS

Hi,gurus here.
We are using SEM-BCS to analyse business consolidation based on BW.
In BW,the consolidation unit's hierarchy is good,but when we execute the data load task in BCS,the consolidatioin unit in BCS can not be organized as an entire hirarchy well.
What's wrong?

Hi Dan,
Thanks for your answer.
Youu2019re saying that although the data is loaded is ignored in the reporting.
But if data is loaded isnu2019t it considered in the consolidation methods? As in the method for IU IU Elimination and Reconciliation or Consolidation of Investments?
Thanks for your help.
Best regards.

Where will i get the method code and method name in Bpc

Dear Experts,
Thanks for watching this thread at the time of creating Consolidation methods they have
NEW
HOLDING
GLOBAL
PROPORTIONAL
EQUITY
lEAVING (END OF THE YEAR)
LEAVING(DURING THE YEAR)
Where will i get the method Code and method name.
Can you please guide me.
Regards,
Srinivasan.

The consolidation methods types you have listed are the standard ones provided by BPC for Consolidation Method types.
You can set the Consolidation Methods in the BPC Administration Console under Business Rules Library -> Consolidation Methods.
There you can see some defaults - you can remove these and set your own if you prefer.
You should read the BPC340 Training guide.

Error on legal consolidation

Hi,
we are using BPC 7.5 and we are trying to run a legal consolidation (SPRUNCONSO). The error we get is
CSD-120: No Entity - Method available
I have searched the forum for this error and found references to the ownership application. We do have one, it has data for the companies and period (plus previous year end) in question. I have checked the consolidation method used against those set-up (standard from Appshell, i.e. 90 and 86) and the rules we have created and it all matches and looks valid.
Our accounts in ownership are
PCON
POWN
PGROUP
METHOD
PMIN
Most of the dimensions used in the ownership cube (category, currency, entity, intco and time) are shared with the consol app, only the account dimension is specific to the ownership cube.
Does anyone have any idea what else I can check?
Thanks,
Arnold

Dear Arnold
I think your problem is to assign the consolidation method to the entity
Into the administrator, define the consolidation method inside the business rule library
for example
90 for Holding
86 for Global
70 for proporcional
etc.
You have to create a input schedule, with the follow row and col
ROW
ENTITY
COL
CONSGROUP
O_ACCT
Afther that you can execute the package /CPMB/OWNERSHIPCALC to calculate the indirect plus direct consolithation percentage
I hope this work for you
Ariel

Consolidation Method

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