Managing Ownership

You can manage ownership and control of an organization by recording the shares of stock that the entities in the organization own in one another. You can record two types of shares for an organization: regular shares and voting shares. The system uses regular shares to calculate ownership, and voting shares to calculate control.

The Manage Ownership grid displays a list of entities according to hierarchy. You can define the ownership of a parent entity in child entities by assigning system accounts for partial entity ownership, such as Percent Ownership (POWN system account) and Percent Consolidation (PCON system account). You can enter share values and specify consolidation methods for the entities. See Entering Ownership Information.

You can calculate ownership percentages based on share ownership. See Calculating Ownership.

If you assign a holding company to a parent entity, the system first uses the share values to calculate the ownership and control percentages. It then uses those percentages to propose the consolidation percentage and method for the entities below that parent.

The following figure shows a sample ownership grid. The rows display the list of child entities based on the entity that you are using as the parent entity in the point of view. The columns display system accounts for which you can enter values.

Figure 7-1 Sample Manage Ownership Grid