Consolidation Methods

Tax Provision is configured to use the default consolidation and elimination process included as part of Financial Management. The consolidation method is used as part of the consolidation process if referenced in the consolidation rule, and it is used for ownership calculation.

The Tax Provision application is set up without any Consolidation Method. You can define the consolidation methods for the application if needed.

Calculating Ownership

You use the Manage Ownership feature in Financial Management to specify ownership percentages. Data is rolled up to parent entities based on the ownership percentages. You enter consolidation percentages using the Percent Consolidation [PCon] system account, or by entering Shares information. The system calculates the consolidation percentage using the share information.

For details, see the Oracle Hyperion Financial Management Administrator's Guide.

Example: The following example shows how to set ownership percentages for a base entity that is a partnership.

To set up 50% ownership percentage for the base entity (FLE204_LP), follow the steps below:

Base Entity:  FLE204_LP
Year: 2013
Period: P12/P13
Percent consolidation [PCon]: 50

You would then specify the Consolidate All with Data consolidation method to consolidate data at the parent level.

Note:

Make sure to use the Consolidate All with Data option to consolidate data at the parent level. In Financial Management prior to calculation, the system clears all calculated values for base entities and runs the calculations. For parent entities, it clears the calculated cells prior to consolidation. If you only calculate data at the base entity level, the data may not be accurately rolled up from the children and descendant entities. The system only calculates tax on cells that contain data. For NoData cells, tax calculation is skipped for that account and the original calculated tax remains. You must consolidate the parent entity up to the root to make sure all data is calculated correctly.