Minority Interest in Subsequent Consolidation

Hi Experts
Is there a way to ensure that the P&L account for MI is posted in the COI task for the Subsequent Consolidation activity?, we have scenarios with percentage of ownership < 100% that should generate the minority interest in P&L.
We have the proper configuration in the "Appropriation of Retained Earnings" --> "Net Income" --> "Minority Interest in Net Income" option. See following thread: SEM-BCS Minority Interest in Income Statement
In the consolidation area we have selected the Appropiation of Retained Earnings "in Income Statement". See following thread: Diference beetwen app of ret earnings in BALANCE Vs INCOME STAT
In the execution of the COI task for the subsequent consolidation activity, only the Balance Sheet postings (for the RE and MI) and the statistical Net Income Postings appear in the posting document, the P&L account for MI is missing.
Are we missing something?
Regards
Paul

Thanks for the reponse, we tested with both options in the consolidation area and neither of them gave us the desired posting in the PL account.
Addtional Information that might me useful:
Accounting Technique: Purchase Method
Acquisition: Direct Share
Investment Data comes from Additional Financial Data
Equity Data comes from Totals Database (hence the RE comes from here)
Regards

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Minority Interest calculation and consolidation

Hi people. i am new to HFM. I am kind of stuck with Minority Interest calculation and the consolidation of it. Now after looking at different posts on the minority interest calculation here , i am still confused if we could use the calculation expression for Minority Interest calculation within Sub Consolidate() or should we include it in Sub Calculate(). Please find below the script that i am working on.
SCRIPT :
Sub Consolidate()
Method=HS.Node.Method("")
PCon=HS.Node.PCon("")
POwn=HS.Node.POwn("")
vMIN=1-HS.Node.POwn("")
PMin=PCon-POwn
Dim strAccount,i
Set DataUnit=HS.OpenDataUnit("")
NumItems=DataUnit.GetNumItems
For i=0 to NumItems-1
Call DataUnit.GetItem(i,strAccount,ICP,Custom1,Custom2,Custom3,Custom4,Data)
If Method="Holding" Then
Call HS.Con("",PCon,"")
End If
If Method="Global" Then
If StrAccount = "281100" Then
Call HS.Con("A#281100",PMin,"PMin")
'Call HS.Con("A#281000",vMIN,"")
Else
Call HS.Con("",POwn,"")
End If
End If
'If HS.Account.IsConsolidated(strAccount) and Data0 Then
'If Data0 Then
'HS.Con "A#"&strAccount,POwn,""
'If StrAccount = "281100" Then
'HS.Con "",PMin,""
'End If
'End If
'End If
Next
End sub
Sub Calculate()
HS.EXP "A#281100 = A#CapitalStock - A#Investments"
End Sub
My Doubts :
1. Is the expression correct for Minority Interest calculation ?
2. If so can we use it in Sub Consolidate() ?
3. Should the Minority Interest consolidate to its parent using PMin ? If so kindly provide the appropriate expression.
Looking forward to some help. Thanks in advance.

Hi,
If I got it correctly, you don't want the A#281100 calculation to happen for your holding company. There is a preferable way to do your consolidation that avoids involving the Calculate() altogether. So scrap your Calculate and write this Consolidate() instead:
Sub Consolidate()
Method=HS.Node.Method("")
PCon=HS.Node.PCon("")
POwn=HS.Node.POwn("")
vMIN=1-HS.Node.POwn("")
PMin=PCon-POwn
Dim strAccount,i
Set DataUnit=HS.OpenDataUnit("")
NumItems=DataUnit.GetNumItems
For i=0 to NumItems-1
Call DataUnit.GetItem(i,strAccount,ICP,Custom1,Custom2,Custom3,Custom4,Data)
If Method="Holding" Then
Call HS.Con("",PCon,"")End If
If Method="Global" Then
If StrAccount = "CapitalStock" Then
Call HS.Con("",POwn,"")
Call HS.Con("A#281100",PMin,"")ElseIf StrAccount = "Investments" Then
Call HS.Con("",POwn,"")
Call HS.Con("A#281100", (-1) * PMin,"")Else
Call HS.Con("",POwn,"")End IfEnd IfNextEnd subWith this code, the minority interest will calculate only for entities using the Global method.
I did not drive you to this solution immediately in order to avoid to confuse you, as well as because this does not address the issue of Calculation() running at many Value levels.
Regards,
--Kostas

Minority Interest Calculation in Consolidation

Hi,
How is Minority Interest Calculation Handled in a Group Company or in Consolidated Balance Sheets. How it can be shown in SAP?
Reagrds

What we did is set up a calc in the calculate subroutine that caculates minority interest and puts it to the elimination company.
If HS.Entity.UD1("")="RETAILCONSELIM" Then
HS.Exp "A#MINORITYINTSUBS=(E#SUSSERCO.A#NETINCOME.W#Periodic"&{All_Top}&"*.1482)"
End IF

Minority interest - functional knowledge & grouping for Consolidation

Hi Experts,
Scenario
A > holds 100% in B, 10% in C, 5% in D
B > holds 90% in C, 95% in D, 100 % in E, 1 % in F
E > holds 99 % in F
No shares are owned by parties outside the group.
1) Minority Interest
In case like this will MI be accounted for?
Can we say B's holding of 1% in equity of F as minority holding?
Similarly A's holding of 5 % in D; 10% in C?
2) Consolidation Groups - in this scenario will be
CG 1 - E & F (E - Parent, Purchase Method)
CG 2 - B, C, D, F & CG1 (B - Parent, Purchase Method)
CG 3 - A, C, D & CG2 (A - Parent, Purchase Method)
Many Thanks!
Kumar

Thanks Dan!
Yes, purchase method is assigned to all Cons Units and groups.
Having said that, is the grouping correct?

Calculation of minority interest in matrix organization structure

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!

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

Subsequent Consolidation

Hi,
We have a question about subsequent consolidation.
If we have no variations in the % of participation, the only variations we will have are in the net income of the investee units and in the Currency Translation differences item.
We believe that these cases should be a subsequent consolidation because they can be either a credit or a debit, so they cannot be defined as Increase in Capitalization or Reduction in Capitalization.
But the system only allows subsequent consolidation when we have minority interests.
Are we wrong? Canu2019t we have subsequent consolidation with no minority interests?
Thanks for your help.
Best regards.

Unlocking the thread, posting the message...
Dear Eugene,
the BCS system is working correctly and according to our configurations.
We understand your statement and I would like to apologise for your time. The problem, and the reason for what we have made the same question many times, was that client assures to us that in EC-CS system worked as we described in the post.
However, in this saturday, we finally was able to analyse EC-CS and we could confirmed that BCS is working as EC-CS, so there was no error with BCS.
So, we could confirmed that client was wrong and their requisite did not make sense.
Once more, thanks for your cooperation.
Regards,
(If possible shares this conclusion with forum because the thread is locked)
Ricardo Ferrã

Minority Interest on Ownership Change

Dear All,
How to achieve Minority Interest on Ownership Change in the same financial Year.
For Example: For April Ownership and Minority interest is 60% and 40% respectively and PROFIT is YTD 1000.
On that period, Minority will be calculated at 40% and value would be 400.
Next Period, May month - ownership has been changed to 80% and 20% and profit value is YTD 2000.
In this period, Minority should be calculated on two values, which 40% is on 1000 (april's value) and 20% on 1000 which May's value.
Total would be 400 + 200 = 600
How to achieve this in HFM. If we uncheck ConsolidateYTD in scenario view, then system will calculate minority as per the requirement. But, if we uncheck this, then ZeroviewforAdj and ZeroviewfornonAdj has to be periodic and any adjustment requiered, then only periodic value needs to be inputed. But, data load is happening with YTD values (TB values been loaded with YTD value). Any impact on Flow(P&L) / Balance (Balancesheet) accounts if we use periodic values for adjustment.
If we check ConsolidateYTD, then minority interest will be calculated at that month's minority interest % on YTD value.
If month is april then, 40% on 1000 and if month is may then 20% on 2000 = 400 ( which is not right on profit value).
Also, if we uncheck ConsolidateYTD, and having ZeroviewforAdj and ZeroviewfornonAdj with YTD will not give right figure.
Is any other way to approach or achieve minority interest calculation as shown above.
Kindly share your ideas and approach.
Regards,
Raj-

Hi Raj,
Although the manual mentions that ZeroView and ConsolidateYTD should be aligned, I don't think that Oracle should impose this. The reason is that the combination ConsolidateYTD = No with ZeroView = YTD works alright provided you keep some precautions. To make it clear lets consider this: ZeroView can impact two things:
1. future periods, not having and real data loaded (we can just ignore these periods - why bother consolidating them? so this is no problem).
2. intermediate empty periods, which is the case, when we keep both quarterly and monthly data in the same scenario, then periods intermediate to the quarters are left empty.
In any case, ZeroView impacts periods that you don't want to load data, if data is loaded to the period, there is no issue with calculating the consolidated numbers.
So, our discussion is limited to the second case, where we have quarterly data, intermediate months are zero ConsolidateYTD = No and ZeroView = YTD. Then as soon as you set the right consolidation options, your numbers will consolidate correctly in quarters. Lets say that we have numbers in March with 60% and June 40%. Provided that you also make April and May Active and apply the 40% from April through June, then everything calculates correctly. However, if you apply 60% to April and May and 40% to June or leave Active = No for April and May, then numbers will not calculate correctly.
In fact this is my preferred configuration, and it has never let me down.
-- Kostas

How to avoid minority interest dividend calculation

Hi,
I have a requirement to avoid dividend postings to minority interest share portion. We want to post 100% of the dividends to the group company. However the current group shareholding is only 75% hence the system is posting 25% of the dividends to the minority share group. The consolidation of investment method used is pooling of interest method.
Please see the attachment for the screen shot, click on this link and click on the download file button to download the screen shot :- http://wikisend.com/download/289316/Minority%20share%20dividends.JPG
Edited by: FICO Consultant on May 5, 2011 2:41 PM
Edited by: FICO Consultant on May 5, 2011 2:42 PM

Hi,
I cannot delete the distribution of dividends in the location of values because the delete button is not enabled for me. I tried to clear the FS item allocated and did the COI but the system still doing the distribution of dividends somehow. Dont know how. Is this the correct place to deactivate this activity?
I went to the activities screen where i can set the default sequences of the CI activities. But i cannot remove the distribution of dividends activity there too.
Here is the screen shot :-
http://wikisend.com/download/520076/cannot%20delete.JPG

SEM-BCS Minority Interest in Income Statement

Hi,
I am using SEM-BCS 4.0. The C/I task calculates Minority Interests in Current period profits.
How can Minority Interest in profit be shown in Income Statement?
Please suggest
Regards,

Hi,
First you have to have an item for minority interest in the income statement.
Then do the following in the customizing workbench:
Consolidation of investments --> Settings --> Appropriation of retained earnings
Select the tab "Net Income" and assign the mentioned item in the section "Minority Interest in Annual Net Income".
Regards
Ignaz

IFRS requirement , minority interest calculation and accounting for in SAP.

hi ,
We need financial consolidation with full consolidation , equity interest, minority interest as per IFRS requirements along with inter company eliminations
Will it be possible thru ECCS or we need to go to SEM suite.
thanks
KR

Hi,
With Virtual Ledgers in Ecc 5.0 and 6.0 we can customise few things and connected to ECCS module.
If you have BI,SEM modules implemented then it is better to go with Consolidation modules rather than ECCS.
Thanks
G Bharathi

Minority Interest in HFM

Guys
We are using custom logic to calculate minority interest (not using PCON,POWN or PMIN). We are capturing the ownership percentage in certain accounts thru the web forms and using this info in rules to calculate minority interest. This calculation executes at entity currency, at base level entity and translates into USD as part of standard HFM translation.
We are running into issues where minority interest entity belongs to foreign entity (not same as reporting currency entity)
It works fine for P&L but does not work correctly for balance sheet as we have two different rates for these.
Is there any better way to handle this ?
Your feedback is greatly appreciated.

Hi Venkat,
Any particular reason why you are using calculation rules in order to do this? Minority interest as such in my view is a consolidation specific calculation which you normally calculate in the consolidation itself, not so much in the calculation routine. Wirh regards to the ownership percentage and such, this is normally done in the ownership module which is default functionality of HFM. Have you turned consolidation rules on or off?

Missing item assignment for "Minority interest in the balance sheet"

Dear Experts,
We unable to perform "Consolidation of investment" and "Validation of Consolidation data" due to our 2 newly created ECCS Accounts not properly assigned. Can any experts guide me how to mapped it? Your fast action is very much appreciated.
Regards/Lisa

Dear Dan Sullivan,
I have created 2 news ECCS Accounts named as SHARE CAPITAL & SHARE PREMIUM. And i do not know how to eliminate these 2 new ECCS accounts with INVESTMENT IN SUBSIDIARY COMPANIES.
When we performing CONSOLIDATION OF INVESTMENT, the error message showed "Missing Item assignment for Minority Interest in the Balance Sheet" and "No Items are assigned to the items (Newly created ECCS Account)".
Further when we run VALIDATION OF TOTALS DATA, the error message showed "Total Assets is not equal to Total Liabilities + Equity" in Step 002.

Minority interest

hi Gurus,
I am new to HFM so please give me rule for Minority Interest calculation with Automatic Consolidation.........
By 862107
Edited by: 862107 on Jun 9, 2011 10:35 PM

What we did is set up a calc in the calculate subroutine that caculates minority interest and puts it to the elimination company.
If HS.Entity.UD1("")="RETAILCONSELIM" Then
HS.Exp "A#MINORITYINTSUBS=(E#SUSSERCO.A#NETINCOME.W#Periodic"&{All_Top}&"*.1482)"
End IF

Dividend Reclassification - Minority Interest P&L

Hi
I need clarify on the following.
For example: I have one Holding and one subsidiary company. (90% Held by Holding Co.)
Subsidiary company has declared dividend (expenses a/c in P&L appropriation) of USD 100 out of which 90% goes to Holding company as dividend income.
I do Investment income elimination between holding and subsidiary company based on trading partner.
Now I am left with USD 10 in subsidiary company as balance dividend expenses.
I have configured appropriation of retained earnings in income statement.
Now I want the dividend expense of subsidiary to be moved(reclassified) to Dividend M.I.(P&L a/c).
I tried to post this by using reclassification with posting level 20 and 30. But when i executed the task with the document types of posting level 20 and 30, the system gave message "posting is not necessary".
So I changed the document type from posting level 20 to posting level 10. After this I am able to do the dividend reclassfication which transfers from dividend expenses a/c to Dividend M.I. (P&L a/c).
But the dividend reclassification entry should be part of consolidation process. So I feel this entry should come in posting level 30 or 20.
Can anyone tell me is there any specific setting which will enable this document to post in posting level 30 or 20?
Regards
Srinivasan G
9958945462

Dear Collet,
I have implemented distribute dividend in SEM-BCS.
I know to work in two steps:
1st step - one - sided IU Elimination
2nd step - consolidation investments.
Should I work with clearing item for "Clearing - Cons Unit" in tab page "Clearing items" in the 1st step?. I
Where should "clearing item for consolidtion unit" be in my hierarchy items: as assets or as liablities?
Thank you in your help.
Best regards,
anka
Edited by: Anka on Mar 10, 2010 12:51 PM
Edited by: Anka on Mar 10, 2010 12:51 PM
Edited by: Anka on Mar 10, 2010 12:52 PM

Minority Interest from Legacys system

When transferrring the opening balance from legacy system , to ensure the past year calculation is entered inthe new system so that consolidation balance of LY can be compared with CY.
How is the opening balance of last year end loaded. Becuase if the system is going to recalculate , the opening balance of MI, it can end up with different amount.
Please share your experience/thought on this.

Hi Dan,
Yes I agree it is not necessary in the opening balance of GL account.
But it is necessary in the opening consolidated balance of Group account in BCS to reflect the consolidation closing balance of last year last peiod data from legacy system.
if it not brought part of opening balance and if it should not be executed in BCS for past period... some how to bring this amount..
what is the way for this...

Minority Interest in Subsequent Consolidation

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