PeopleSoft Global Consolidations Processes

After your source ledger data resides in the PeopleSoft EPM database tables, you need to prepare the data before you can use it as input for any consolidation processes. Because the subsidiary ledgers may use different accounting calendars, account structures, and store amounts in different base currencies, they must be transformed to a common structure prior to consolidations. Data that has been transformed to this common structure resides in the consolidation ledger.

To prepare the subsidiary ledger data for the consolidation ledger, you define a series of mapping rules, add them to ledger preparation rules, and then run the ledger preparation process. After the ledger preparation processes are completed, the source ledger data is converted to the common structure, based on your mapping rules, and moved into the consolidation ledger. The data in the consolidation ledger is subsequently used as input for consolidation processes.

If your source subsidiary ledger data is in the same format as the consolidation ledger, when you define its ledger preparation rule, you can indicate that no preparation is required.

Currency adjustment processing generates beginning balances for the current period, using prior period data that already resides in the consolidation ledger. Because the currency adjustment engine processes prior period source ledger activity, the currency adjustment is run after the ledger preparation process and is tracked through the ledger enrichment manager.

Oracle's PeopleSoft Global Consolidations flows feature provides the ability to capture the change in account balances for a specified period. By considering the different type of flows (or activities) affecting the net balance of an account, you can reconcile account variation using account activities that traditional ledger mapping of accounts is unable to capture.

Data flows for consolidations are used to track and reconcile gross variation. Gross variation is the difference between the opening and closing balances of an account, which can be caused by many activities. For example, the gross variation of fixed asset accounts could be distinguished by additions, disposals, asset impairment, currency translation, and reclassification. Reporting the data flow for specific accounts is often required as part of regulatory reporting.

Source flows are amounts associated with the source data after it goes through the ledger preparation process and can be tracked by both manual and system flow codes. Source flows are entered in the local book currency and translated at both the closing and cash flow rates.

During the ledger preparation phase, you input, review, and correct amounts for manual flow codes on the Source Flow Input page as needed, and then run the source flow update engine.

Elimination processing uses the elimination and non-controlling interest rules that you establish to eliminate amounts due to intercompany transactions, eliminate parent investment and subsidiary equity amounts, and generate a non-controlling interest offset.

Any out of balance amounts are booked to the elimination entity attached to common node between the two entities with interunit transactions. You can view these entries on the trial balance inquiry and drill down to the consolidation log which provides details about which rule generated the entry. You can also run the match report or inquiry which compares all interunit activity and how it is eliminated.

Equitization processing uses the ownership and equitization rules that you establish to equitize the current period earnings of subsidiaries, and books the earnings to the parent. It also generates non-controlling interest adjustments against the subsidiary's change in equity. Running this process is optional; whether you choose to use it depends on your organization's reporting requirements.

When producing consolidated financial statements, you eliminate equitization entries and create non-controlling interest entries related to the equity generated by the subsidiary during the period. These are both options with the equitization process. If specified, the equitization process creates the elimination entries that "back out" the equitization entries and sends them to the proper elimination entity as indicated in the consolidation tree. It also calculates the non-controlling interest expense and liability for the subsidiary's equity for the period.

Journal flows are amounts associated with journal entries or batches posted for the consolidation fiscal year and period, and can be tracked with both manual and system flow codes. Journal flows amounts are entered in the consolidation currency.

The Journal Flow Update process updates both system-generated and manually input flow data associated with journal entries for the consolidation fiscal year and period.

The journal publish feature enables you to send journals that are generated in Global Consolidations back to source systems that subscribe to these messages. Journals are published as XML messages.

You set up data mapper rules that define which ChartFields the system publishes. Data mapper rules can also provide additional information not available in the in the journal data. For example, you can use data mapper rules to specify the values for the LEDGER_ID and AFFILIATE fields. Data Mapper also works in conjunction with ledger preparation. You can "reverse map" the changes done during the ledger preparation process.

The close process uses closing and roll forward rules to close and roll forward account balances either to the next period or the next fiscal year depending on your consolidation ledger type. Trial balance-based consolidations use year-end processing, and financial statement-based consolidations use period-end processing. After the close process has run, you can review the results on the Ledger Inquiry page.