1. Administering Financial Consolidation and Close
  2. Consolidating Data
  3. Creating Consolidation Rules

Creating Consolidation Rules

To create a consolidation rule:

  1. On the Home page, click Application, and then click Consolidation.

  2. From the Consolidation Process page, select the Consolidated tab, and then select Configurable Consolidation.

  3. Select the rule-set within which to create the rule.

    All rules must be in a rule-set.

  4. Click the Create Rule (+) icon.

  5. In the new rule screen, enter the Name of the rule.

  6. Optional: Tap description to enter the description of the rule.

  7. Condition: This is inherited from the rule-set and cannot be modified in the rule.

  8. For Factor: If the factor was set at the rule-set level, then that condition is inherited and cannot be modified in the rule. If the factor was not set at the rule-set level, then you should enter the factor for each rule.

    Select one of these options in the first drop-down box:

    • Current

    • Change In

    • Lower of entity or partner

    • Product of entity / partner

    • Specific %

    • Prior

    • Last Period of Prior Year

    Then select one of the options in the second drop-down box:

    • Entity Consolidation %

    • Entity Ownership %

    • Entity Minority Interest %

    • Partner Consolidation %

    • Partner Ownership %

    • Partner Minority Interest %

  9. For Processing Option, select Add or Subtract from the drop-down list. The Rule Processing option specifies whether to add or subtract the calculated data value to any data value already posted to the destination. See Rule Processing Option.

  10. Rule Source POV: This is inherited from the rule-set and cannot be modified in the rule.
  11. Optional: To define a redirection of the data, click Redirect Members. See Rule Redirection.

  12. Optional: If Partner Eliminations has been enabled for the rule-set, after selecting Redirect Members, select Enable Partner Elimination.

  13. To save the rule, click Save and Close, or to continue creating rules, click Save and Continue.

Rule Processing Option

The Add option will post the processed data to the Elimination Consolidation dimension in the same manner as proportionalization, applying the factor to the source data value. The Subtract option will also apply the factor to the source data value but will post the "reverse" value.

For example, to "reverse" the effect of proportionalization of an account, you would apply the Subtract option.

Note than when a data-point is "redirected" to a different account member, the account type is taken into account when the posting is processed. For example when:

  • A positive amount sourced from a Revenue account is not redirected, or is redirected to a different Revenue account with the Add processing option, then a positive amount is posted to the Revenue account.

  • A positive amount source from a Revenue account is not redirected, or is redirected to a different Revenue account with the Subtract processing option, then a negative amount is posted to the Revenue account.

  • A positive amount sourced from a Revenue account is redirected to an Expense account with the Add processing option, then a negative amount is posted to the Expense account.

  • A positive amount sourced from a Revenue account is redirected to an Expense account with the Subtract processing option, then a positive amount is posted to the Expense account.

  • A negative amount sourced from a Revenue account is redirected to an Expense account with the Add processing option, then a positive amount is posted to the Expense account.

  • A negative amount sourced from a Revenue account is redirected to an Expense account with the Subtract processing option, then a negative amount is posted to the Expense account.

The general rule is:

  • Multiply the source amount by -1 if the "normal sign" of the Source Account Type is different than the "normal sign" of the Target Account Type.

  • If the selected Processing Option is Subtract, multiply again by -1.

The "normal sign" of the Account Types are:

  • Revenue - Credit balance (-)

  • Expense - Debit balance (+)

  • Asset - Debit balance (+)

  • Liability - Credit balance (-)

  • Equity - Credit balance (-)

  • Saved Assumption - Balance (+)

The rule Source POV is inherited from the rule-set and cannot be modified in the rule.

Rule Redirection

When the data defined by the Source POV is processed, the data values are multiplied by the factor and posted to the Elimination Consolidation dimension member. If no redirection is defined, then the POV of the Destination will be the same as the Source (other than the Consolidation member). The posting of the data can, however, be redirected to a different member of one or more of the sub-cube dimensions: Account, Intercompany, Movement, Data Source, Multi-GAAP (if applicable), or any user-created Custom dimension only. Entity redirection is not allowed in consolidation rules (except PElim).

To define a rule redirection:

  1. From the Create Rule screen, click Redirect Members.

    The Source POV section of the screen will be split into the inherited Source POV on the left, and a Redirection column on the right.

  2. In the Redirection column, the default redirection member is displayed as "Same as source". You can add a redirection member by selecting a base member of the dimension from the member selector.

When posting to the Elimination Consolidation dimension member, the member from the Source POV will be replaced by the selected redirection member.

The Intercompany dimension also provides a Consolidation String selection for #Source POV Entity#. If you select this string, then the Intercompany member used for redirection will be the Intercompany equivalent of the Entity in the Source POV ("ICP_<Source POV Entity>"). See Consolidation Strings.

You can apply different redirect members based on one or more conditions.

To add a condition to a redirection dimension:

  1. Click the Add (+) icon at the right side of the column.

  2. Create a condition to which to apply to a data point in order to determine the redirection.

    • If the condition is met, then the data is posted to the first redirection member.

    • If the condition is not met, then the data will be posted to the second redirection member.

      Select the redirection members from the Member Selector or leave as "Same as Source", as required.

  3. Continue to add conditions and redirection members as required by selecting the Add (+) icon, or remove existing conditions by selecting the Delete (x) icon.

The conditions for each of the redirection entries are created using the same method as the rule-set condition. See Creating Consolidation Rule-sets.

Partner Eliminations

If the rule is to write data to a partner, first select the Redirect Members button and then select Enable Partner Elimination. For a Partner Elimination rule, the redirection entry for the Entity, Intercompany and Data Source dimensions will be pre-set and cannot be changed.

Entity redirection

#Source POV Intercompany#

Intercompany redirection

#Source POV Entity#

Data Source redirection

Partner Eliminations

When the entity is processed and an eligible data-point is encountered, the Partner Elimination rule will write a data-point to the Elimination consolidation member of a sibling of the entity being processed. If the intercompany partner itself is a sibling of the current entity, the data will be written to the partner but if not, will be written to any ancestor of the partner that is a sibling of the current entity. The POV of the data-point written will include the entity of the source data-point as the intercompany partner and will always be written to the Partner Eliminations Data Source member ("FCCS_Partner Eliminations").

When Partner Elimination data is written to the Elimination member of a sibling, the calculation status of that sibling is not impacted in the current period, but is impacted in future periods. When the entity creating the partner elimination entry is re-consolidated, any data written to any sibling from that entity is first cleared and then re-posted as required. The posting and clearing of data in the Partner Elimination Data Source member of the Elimination Consolidation member is in effect "owned" by the entity that writes that data (identified by the intercompany entry) and not by the entity in which the data resides.

Note that if the partner of a data-point exists in multiple places in the entity hierarchy (that is, shared ownership) then one source data-point might generate multiple partner elimination entries, at a single generation of the source entity or at multiple generations.

After you deploy configurable consolidation rules, if you need to diagnose performance issues, you can diagnose them manually, or use an automated approach. To enable the automated approach to resolve performance issues, add a substitution variable named OptimizeConfigConsol and set the value to True.

If you are using Partner Eliminations (PElim) logic in your Configurable Consolidation rules and are experiencing performance degradation as a result, you can add a substitution variable named EnablePelimNewLogic and set the value to True to improve performance. Note that if you are using PELIM where the entity and partner are the same member, your data values may change.

If there are consolidation performance issues when deploying a user-created Partner Eliminations Configurable Consolidation Rule that has an account re-direction, you can add a substitution variable named OptimizePelimCalculation and set the value to True, which can provide performance improvement.

Watch the following video for information on creating consolidation rules:

Video iconCreating Consolidation Rules

Watch the following video for information on creating consolidation rules with partner eliminations:

Video iconCreating Configurable Consolidation Rules with Partner Eliminations