Processing Eliminations

This section provides an overview of elimination processing and discusses how to run the Elimination application engine.

Pages Used to Process Eliminations

Page Name	Definition Name	Navigation	Usage
Eliminations run control	RUN_GC_CONSL	select Global Consolidations, then select Process Consolidations, then select Run Consolidations Processes, then select Eliminations	Run the Elimination application engine.
Journal Selection	RUN_GC_JRNL	Click the Select Journals link on the Eliminations run control page.	Select which journals to include when using the proforma option.

Understanding Elimination Processing

Use the Elimination run control page to process eliminations, which eliminates or cancels out the effects of intercompany transactions and non-controlling interests. When you process eliminations, you can opt to process intercompany eliminations, non-controlling interest eliminations, or both.

When running the intercompany elimination process, the system:

Resolves data from the consolidation ledger (CLED) into the ILOG, based on the elimination rules for the consolidation model, the fiscal year, and period that you specify in the run control, and adds a sequence number key to each row.
Processes eliminations on the resolved ILOG data by creating entries in the OLOG to the specified elimination target ChartFields with a reversed sign, booking the entries to the elimination entity for that node.
After populating the OLOG with the elimination entries, calculates the out-of-balance amount from the OLOG lines and creates the out-of-balance entries to the OLOG.
Creates reversal entries for eliminations, if necessary.

This step depends on the processing method, which is established on the Ledger Template page for the consolidation ledger. The system creates reversal entries only if you are using a trial balance format and processing year-to-date, except when you are processing the last accounting period of the year.

Note: Steps one through four use temporary (work) tables.
Merges the temporary ILOG and OLOG tables into their permanent tables, GC_ILOG_XXX_TBL and GC_OLOG_XXX_TBL, respectively.
Creates the journal lines in the journal table with a GC_SOURCE of 04 (elimination entry).
Posts the journals to the consolidation ledger (CLED), if you choose to automatically post them.

If you are processing a rerun, during the initial stages of processing, the system unposts any posted journals from the prior run that affect the same data, or the system deletes them if they weren't posted. If you rerun using a different consolidation tree node, the system only unposts (or deletes) journals from the prior run that were recorded against nodes within the tree node now being processed.

When you run the non-controlling interest eliminations process, the system:

Resolves the data for the subsidiary equity accounts from the CLED into the ILOG, and adds a sequence number key to each row.
Resolves the data for the parent investment accounts from the CLED into the ILOG.
Eliminates the subsidiary equity data by creating the entries in the OLOG to the specified elimination target ChartFields with a reversed sign, booking the entries to the elimination entity.
Similarly, eliminates the parent investment data, generates non-controlling interest adjustments, and creates out-of-balance amounts in the OLOG, if applicable.
Creates reversal entries for the non-controlling interest eliminations, if necessary.

This step depends on the processing method, which is established on the Ledger Template page. The system creates reversal entries only if you are using a trial balance format and processing year-to-date, except when you are processing the last accounting period of the year.

Note: Steps one through five use temporary (work) tables.
Merges the temporary ILOG and OLOG tables into their permanent tables, GC_ILOG_XXX_TBL and GC_OLOG_XXX_TBL, respectively.

Creates the journal lines in the journal table with one of these GC_SOURCE values:

The parent investment elimination and the elimination of the portion of the subsidiary equity that is from that parent, as well as any out-of-balance entries.

The non-controlling interest liability elimination, and the elimination of the portion of the subsidiary equity due to the non-controlling interest.

Posts the journals to the consolidation ledger (CLED), if you choose to automatically post them.

Note: If you are using the financial statement consolidation ledger format, you must run the non-controlling interest eliminations after the equitization process. In this way, the system properly eliminates the additional investment from the equitization process.

Eliminations Run Control Page

Use the Eliminations run control page (RUN_GC_CONSL) to run the Elimination application engine.

Navigation

select Global Consolidations, then select Process Consolidations, then select Run Consolidations Processes, then select Eliminations

Image: Eliminations run control page

This example illustrates the fields and controls on the Eliminations run control page. You can find definitions for the fields and controls later on this page.

Unit, Scenario ID, Fiscal Year, and Period

Specify the common consolidation business unit, scenario ID, fiscal year, and accounting period to process.

Jobstream ID

Accept the default value, GC_ELIMMGR, to use the delivered jobstream ID.

Select any of these processing options:

Override Scenario's Tree Node

Select to use a different tree node than the one that is specified on the consolidation model. If you use this option, then in the Tree Node field, select the applicable tree node. The tree node that you specify must be at a lower hierarchical level of the tree than the node specified on the consolidation model. If the consolidation model is configured for tiered consolidations, you can select only the tree nodes specified on Tiered Consolidation page.

See Establishing Consolidation Models.

Process Inter-Company Eliminations

Select to run the inter-company elimination engine.

Process Non-Controlling Interest Eliminations

Select to eliminate subsidiary equity and parent investment amounts, and generate adjustments attributed to non-controlling owners.

Proforma

Select to use proforma journals (journals that have not been posted) as source data, rather than the consolidation ledger. When you select this option, the Post Journal Created option is disabled, because the system does not post proforma journals for consolidation processing. Use the ledger post process to post proforma journals.

Post Journal Created

Select to automatically post the resulting journals to the consolidation ledger by calling the ledger post process. This option is not available when the Proforma option is selected.

Send Tolerance Email

Select to send email notifications when out-of-balance amounts exceed their tolerance level.

Get Prior Run Differences

Select to compare results of the current run with that of the previous run and store the differences in the consolidation change log, which you can view by using the Run Difference Analysis page. This field is available if you select it on the General Options page.

See Defining System-Wide Security and Processing Options.

Update Flow Amounts

Select to update flow amounts when processing eliminations.

Updates any flow amounts after the consolidation process has been run. This option is available only if the Post Journal Created option is selected. The Update Flow Amounts option appears only if flow processing has been turned on for the consolidation ledger template.