Seeded Consolidation Rules

Several seeded consolidation rule-sets provide generic Ownership Elimination adjustments.

You cannot modify these rule-sets. The rule-sets are initially un-deployed, but can be deployed or duplicated, and the copy can be modified and deployed.

Alternatively, you can create new rule-sets and rules. See Creating Consolidation Rule-sets and Creating Consolidation Rules.

Nine seeded system rule-sets have been defined:

  • Investment

  • Investment PP

  • Owner's Equity (Subsidiary/Proportional)

  • Owner's Equity (Subsidiary/Proportional) PP

  • Owner's Equity (Equity)

  • Owner's Equity (Equity) PP

  • Owner's Equity (Holding)

  • Net Income (Subsidiary)

  • Net Income (Equity)

The first six rule-sets (Investment, Investment PP, Owner's Equity (Subsidiary/Proportional), Owner's Equity (Subsidiary/Proportional) PP, Owner's Equity (Equity), and Owner's Equity (Equity) PP) provide adjustment/elimination entries between the Investment of a holding company in a subsidiary and the Owner's Equity of that owned company, whether consolidated by the Subsidiary method (recognizing Minority/Non-Controlling Interest), the Proportional method or the Equity method.

The Goodwill - Offset asset account is used as the clearing/plug account between the investment and owner's equity adjustments. If the holding company investment amount and the owned company pre-acquisition Owner's Equity amount(s) do not match, the difference will be recorded as Goodwill.

The Owner's Equity (Holding) rule-set prepares the Owner's Equity data of a Holding company for subsequent elimination if the Holding company becomes a subsidiary at a higher level in the organization structure.

Net Income (Subsidiary) and Net Income (Equity) rule-sets record the ongoing Net Income impact for a Subsidiary (Minority interest) and an Equity company (Equity income).

Pre-conditions for the Seeded Rule-Sets

The seeded rule-sets use the Intercompany dimension to track the legal entity (currently the base entity) to which elimination entries are related. All base entities must therefore be designated as Intercompany entities (select the "ICP_Entity_Yes" attribute in the Entity dimension level 0 members) so that they exist in the Intercompany dimension in the form "ICP_<entity name>".

The data entered for Investment in Subsidiaries in the Holding Company must include an Intercompany dimension entry that identifies the owned entity. Data entered to Owner's Equity accounts do not need an Intercompany entry.