Understanding Elimination, Non-Controlling Interest, and Equitization Rules
After establishing required rules for tolerance, account balances, ownership, and closing, you can establish elimination, equitization, and non-controlling interest rules. Like the required rules, these rules are used to define a consolidation model, and specify the parameters that are used as input into consolidation processing.
See Understanding Elimination, Non-Controlling Interest, and Equitization Rules.
Consolidation Rule Types
There are several types of consolidation rules:
Consolidation Rule Name |
Rule Definition |
---|---|
Tolerance rules |
These rules define an acceptable limit or threshold for out of balance amounts out of balance threshold for journals generation by the consolidation processes. |
Account balance rules |
These rules specify which accounts within the consolidation ledger are used to determine if the ledger is balanced. |
Ownership rules |
These rules specify the accounting methods, equitization thresholds, and ownership levels of a parent for a subsidiary. They are based on the total and voting shares owned by the parent. Ownership rules should be established before you establish elimination, NCI, and equitization rules. |
Elimination rules |
These rules identify the accounts that store balances due to intercompany transactions, so that the system can eliminate those amounts from the consolidated results. |
Non-Controlling interest rules (NCI rules) |
These rules identify the accounts that store balances for a parent's investment in a subsidiary and subsidiary equity, so that the system can eliminate each parent's investment against subsidiary equity and eliminate the remaining portion of subsidiary equity that is attributable to non-controlling interest from the consolidated results. |
Equitization rules |
These rules define how the system recognizes a parent's equity in the earnings of a qualifying subsidiary. |
Flow templates |
Flow templates define how the system recognizes tracking and reconciliation of gross variation (difference between the opening and closing balances) of an account. |
Publish Rules |
Publish rules define what journals are published back to a PeopleSoft general ledger, and also govern drill down capabilities |