First Consolidation  purchase method subsequent consoli.. in Equity method

I have a scenario where the business wants to eliminate investments and equity postings. So investment should be offset against equity.(like in Purchase method). After the client also wants the Net income from the investee to be rolled into parent .(like in equity method offset against investment and offset to a P&L account.). Can some body give me a suggestion how to configure this kind of situation.Is this scenario reasonable.
Also all subs are 100% owned.So no minority or goodwill activities are taking place. Any help is appreciated.
Thanks.
Sanjay

The earnings of the subsidiaries is automatically included in the cons group results.
However, I have seen this request on more than one occasion and have dealt with it differently depending on the reason for this requirement.
For determining the value of a parent, including investment in subs, the best approach IMHO is to create a separate cons group hierarchy exactly the same as the legal or standard hierarchy, with different group names (we used the first letter L for each group in the legal hierarchy and first letter E for each group in the "equity" hierarchy). In the equity hierarchy each unit is assigned the equity method except for the parent company of each group. Then COI is executed for this hierarchy. In the equity hierarchy, all the earnings is posted to the parent. Reports may be written for this hierarchy to achieve the required results.

Similar Messages

  • ECCS - G06020 First consolidation data for unit x in group G2 contains err

    Dear Experts,
      When I try to consolidate the investment, I got error message as below:
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    Message no. G06020
    Diagnosis
    Investment or equity data was collected for consolidation unit x for a date that is after the period of first consolidation in consolidation group G2. This makes all activities for this unit ineffective after the first consolidation of those activities. This can also affect indirect activities and organizational changes of other consolidation units.
    Procedure
    Correct the investment or equity data for consolidation unit x.
    Then,  I have no idea how to fix the problem. If i changed the investment or investee's equity, the data validation can not be successful. And from the message is said, the date could be critical, but I don't know, which date is incorrect.
    The background information is described as below:
      This is the first consolidation, I have run all tasks of data collection and elimination of AR/AP and Dividends.
      The consolidation is based on purchase method.
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    Flex Yang

    How can you solve this problem?, please guide me to solve this problem, i have similar problem, thanks.

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    Dear all,
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    After changing the period, I am able to execute the task but it works only for CU04 and other CUs' left out.
    CU04, CU03, CU02 are 100% Subsidiary of CU01.
    Where do i define 100%parent and subsidiary relationship. In Accounting Technique I have selected the parent Company and I am using Purchase Method which I think will automatically consider 100%Minority Interest.
    When I execute task for COI:
    Doc. is posted but there is no investement detail
    the doc. should look like as under:
    First Consolidation under which
    1. Investment
    2. Equity
    3. Differential
    4. Document : cu01 invest(-)
    cu01 invest
    cu03 ordin share
    cu01 gw 1
    cu03 ordin share(-)
    Amortization of Goodwill
    1.
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    Edited by: VAISHALI MODI on Sep 30, 2008 8:35 AM

  • Statistical Offsetting Item in first consolidation..

    In the purchase method with direct shares..during first consolidation following are sample first consolidation entires posted in help.com .
                Cons Unit     Partner Unit     Item                                  Value
    1     A     U                    Investment                                  1000-
    2     U                          Common Stock                  1000
    3     U                          MI-Common Stock                    200-
    4     U     A                    Statistical Common Stock     800-
    5     U                          Statistical Offsetting Item     800
    6     A     U                    Goodwill                                     200
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    The system stores subsequent consolidations (post first consolidation) earnings/losses, dividends, activities in statistical accounts for COI so that when a divestiture or partial divestiture occurs these amounts are used to reduce the gain or increase the loss recorded in source G/L for write off of the investment as a result of the divestiture. Because these subsequent consolidation earnings/losses are not typically recorded in the source G/L, the system uses statistical account for this purpose.
    When earnings/losses, etc. are recorded in source G/L they are written off along with the original investment as part of divestiture and thus included in gain/loss of divestiture. However, with COI, that is not typically the case.

  • Purchase method

    1. While accounting using Purchase method for COI, how is intercompany dividend is eliminated?
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    Hi Gokul,
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    For purchase method there are eliminations in all 3 main consolidated reports:
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  • Automatic entry for Common Stock , first consolidation in additional data

    Hi,
    I need to know why, after uploading the notification data, the system automatically populates an entry on the additional notification data for 'Changes in Investee Equity' at the activity "First consolidation". I must tell that there were no previous entries because this is the first consolidation on ECCS.
    But, where is configured which FS Item should the system identify as the one related to the Common Stock? it is detecting the P&L carrying forward FSI instead of the common stock...
    Thanks in advance!
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  • LC change in Consolidation Unit after first consolidation

    Dear All,
    Comapny A with LC as MUR been tied to consolidation group and consolidation takes place very quarter but after the first consolidation comp A wants to switch to LC as EUR...
    Kindly guide me how to deal with previous data in old LC and config steps related to LC change.
    Regards,
    Balaji.c

    Balaji,
    The usual list of rates & items:
    B/S:
    Investments, Fixed Assets and Equity (except of RE & MI) - historical rates -- might be deviation toward current rate (if the company doesn't want to keep these rates and information)
    RE & MI - average rate (should be the same as in P&L)
    All other items - current rate.
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    Edited by: Eugene Khusainov on Apr 25, 2008 11:45 AM

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