Using Equitization

During the accounting year the equity of a subsidiary can change affecting the ownership value of a parent in that subsidiary. For example, net income or losses of a subsidiary increases or decreases the investment and owner equity of the parent. General Ledger enables you to set up multiple equitization rules for multiple business units that have complex parent-subsidiary relationships and create journal entries within a single process. A ledger for a parent entity can be different from that of its subsidiary and, as one of the options, you can generate elimination entries for consolidated reporting.

Note:

Equitization supports only the Business Unit field as the processing entity. This is unlike the Consolidation process, which allows consolidation of fields other than business unit, such as the Operating Unit field.

This section discusses:

• Reviewing Equitization Example.

• Reviewing of Components of the Equitization Process.