You can set up the ownership and control of an organization by recording the shares of stock that the entities in the organization own in one another. You can record two types of shares for an organization: regular shares and voting shares. The system uses regular shares to calculate ownership and voting shares to calculate control.
You can enter the number of shares that entities own. If you assign a holding company to a parent entity, the system can calculate the ultimate ownership and control percentages based on the share values. It can then use the ultimate percentages to propose the consolidation percentage and method for the entities below that parent.
If you are using Financial Management on the Web, you can manage ownership information such as percent consolidation, percent ownership, percent control, and consolidation method. You can enter information for selected entities and these system accounts: Active, Method, PCON, POWN, PCTRL, DOWN, Consol1, 2, and 3. The grid also displays a column called PMIN, which is a calculated column using this calculation: PCON - POWN = PMIN. To enter ownership information, you must be assigned the Manage Ownership security role. See Entering Ownership Information.
In addition, you can calculate values for ownership percentages based on the ownership of shares of entities. See Calculating Ownership.
The following figure shows a sample ownership grid. The rows display the list of child entities based on the entity you are using as the parent entity in the point of view. The columns display system accounts for which you can enter values.
