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.

See Understanding Consolidation Processing

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. See Understanding Tolerance Rules.
Account balance rules	These rules specify which accounts within the consolidation ledger are used to determine if the ledger is balanced. See Understanding Balancing Account Type Rules.
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. See Understanding Ownership 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. See Flow Template - General Page.
Publish Rules	Publish rules define what journals are published back to a PeopleSoft general ledger, and also govern drill down capabilities See Understanding Journal Publishing.