Before you Begin

This 45-minute hands-on tutorial shows you how to create configurable consolidation rules that write data to partner entities. The sections build on each other and should be completed sequentially.

Background

Configurable Consolidation rules with partner eliminations enable you to write data directly to a sibling of the entity currently being consolidated, if the sibling is its intercompany partner, or if one of the sibling’s descendants is its intercompany partner.
In the example, US Holding has an investment in Company A, its sibling, recorded in the Investment in Subsidiaries account, with Company A as the intercompany partner member. Using partner elimination, the value in the Investment in Subsidiaries account for US Holding is written to Company A's Goodwill Offset account, with US Holding as the intercompany partner member.

Example

Note:

Note that if the intercompany partner is a descendant of a sibling, rather than a sibling, the data is written to the sibling, not to the descendant.

What Do You Need?

An EPM Cloud Service instance allows you to deploy and use one of the supported business processes. To deploy another business process, you must request another EPM Enterprise Cloud Service instance or remove the current business process.

  • Have Service Administrator access to EPM Enterprise Cloud Service. The instance should not have a business process created.
  • Upload and import this snapshot into your Financial Consolidation and Close instance.
  • Upload and import this additional snapshot into your Financial Consolidation and Close instance to add the data forms used in this tutorial.

    Note:

    For more information on uploading and importing migration snapshots, refer to the Administering Migration for Oracle Enterprise Performance Management Cloud documentation.
  • Save this compressed file locally and extract the (csv) data files. You will be importing data and metadata using the extracted files.

Verifying the feature is enabled

You enable Partner Elimination for consolidation rules using the Setup Wizard during business process creation, or from the Configuration page afterward. Enabling the feature adds the Partner Elimination member to the Data Source dimension. In order to enable Partner Elimination, the Track Intercompany Elimination and Ownership Management features must also be enabled.

  1. From the Home page, click Application, then Configuration.
    Configuration Card
  2. Click Enable Features.
    Enable Features button
  3. Verify that Partner Elimination is selected in the Accounts Reporting area.
    Enable Features dialog box
  4. Click Close to return to the Application Overview page.

Entering ownership information

  1. Click Consolidation.
    Consolidation Card
  2. Verify that the POV is set to Total Geography, Actual, FY18, Jan.
    Ownership Management POV
  3. In the row for Legal Entity 0012 (USD), select Holding in the Consolidation Method list.
    Consolidation Method
  4. In the row for Legal Entity 0014 (CAD), enter 80 in the Ownership % field.
    % Ownership field
  5. Click Save Changes.
    Save Changes button
  6. Click OK at the status message.
  7. On the Manage Ownership page, select Actions, and then Recompute Ownership Data.
    Recompute Ownership Data option
  8. Make the selections below, then click Recompute.
    • Scenario: Actual
    • Year: FY18
    • Start Period: Jan
    recompute ownership
  9. When completed, click OK.

Importing Data

To simplify your sample data, you import a translation rates file that sets the rate for all currencies to 1. This allows you to analyze the calculation results without considering the affect of different translation rates. You then load financial data for Legal Entity 0012, the holding company, and its subsidiary, Legal Entity 0014. You review the data in a form.

  1. Click Overview to open the Application Overview page.
    Overview card
  2. On the Application Overview page, click Actions, and then select Import Data.
    Actions Menu
  3. In Import Data dialog, click Create.
    Create Button
  4. Keep all the default selections, and click Browse to select a file.
    Browse Button

    Note:

    Depending on your browser, the button label may display Choose File or Browse.
  5. Locate and select FXRates_Ones.csv, and click Open.
  6. Click Import.
    Import Button
  7. At the information dialog, click OK.
    Information Prompt

    Tip:

    The data files provided in this tutorial have been validated against the loaded business process. For newly created or modified data files, Oracle recommends that you validate the files before running the import process.
  8. Click Update.
    Update Button
  9. Locate and select Data_File.csv, and click Open.
  10. Click Import.
  11. At the information dialog, click OK.
  12. Click Close twice.
  13. Click Jobs.
    Jobs Icon
  14. Verify that the jobs completed successfully.
    Jobs Page
  15. Click Home icon (Home) to go to the home page.
  16. From the Home page, click Data.
    Data card
  17. Open the Reference_Application folder, then the Consolidation_Rules folder, and click Investment Data.
    Forms list
  18. Review the data.
    Legal Entity 0014 has issued 2000 in Common Stock. Legal Entity 0012 has invested 1600 in Legal Entity 0014, recorded in the Investment in Sub account with Legal Entity 0014 as the partner. This represents an 80% ownership share.
    Consolidation Results
  19. Click the x for the Investment Data tab at the bottom of the page to close the form and return to the forms list.
  20. Click Home icon (Home) to go to the home page.

Creating a partner elimination rule-set

Configurable consolidation rules are deployed in rule-sets. You must enable a rule-set for partner elimination before you can add rules with partner eliminations. In this section you make a copy of the Investment rule-set, and enable it for partner eliminations.

  1. On the Home page, click Application, and then Consolidation.
    Consolidation card
  2. Click the Consolidation Process vertical tab to display the Consolidation Process page, then click Consolidated.
    Consolidation Process page
  3. Click Configurable Consolidation to open the Manage Consolidation Rules dialog box.
    Configurable Consolidation option
  4. Click the ellipsis for the Investment rule-set, then select Duplicate With Rules.
    Duplicate With Rules option
  5. Scroll to the bottom of the rule-set list and click Investment - Copy.
    Investment - Copy rule-set
  6. Change the name of the rule-set to Investment With Partner Elimination.
    Rule-set name field
  7. Click Create Partner Elimination to enable partner eliminations for the rules in the rule-set. Note that the Entity dimension is added to the scope. The Entity, Intercompany, and Data Source dimensions are required in the scope for partner elimination rules.
    Create Partner Elimination button
  8. Click Save and Close.
    Save and Close button
  9. At the warning prompt, click OK. The entities used in this tuorial are flagged as intercompany, so you can ignore the warning.

Creating partner elimination rules

Creating a partner elimination for Goodwill Offset

In this section, you create a rule that applies the current period consolidation percentage to the holding company's Investment in Subsidiaries account for each subsidiary, and writes it as a partner elimination to the Goodwill Offset account of the subsidiary.

Goodwill Offset example

This will be offset in the partner entity by the Owners Equity - Goodwill Offset rule that runs when the subsidiary is consolidated.

  1. In the rule-set list, expand the Investment With Partner Elimination rule-set.
    Partner Elimination rule-set

    Tip:

    If your cannot see the new rule-set in the list, expand the last rule-set in the list and then scroll.

  2. Click the ellipsis for the Investment - Goodwill Offset rule and select Duplicate.
    Create Rule icon
  3. Click Investment - Goodwill Offset_Copy to open the copy and change the rule name to Investment - Goodwill Offset PELIM.
    Rule Name
  4. Click Enable Partner Elimination.
    Enabling partner elimination adds the Source POV Intercompany keyword as the target redirection for Entity. This redirects the target for the Entity dimension to the intercompany partner entity of the source. The Source POV Entity keyword is added as the target redirection for Intercompany. This redirects the target for the Intercompany dimension to the Source entity member. The Data Source member is redirected to Partner Eliminations. The selections for Entity, Intercompany, and Data Source cannot be modified.
    Processing Options
  5. Click Save and Close to return to the rule-set list.

Creating rules for Investment Link

In this section, you create a rule that applies the current period consolidation percentage to the holding company's Investment in Subsidiaries account for a subsidiary, and writes the value to the Investment Link account, with the subsidiary as intercompany partner. You create a second rule that uses partner elimination to write a reversing entry to the Investment Link account of the subsidiary entity, with the holding company as the intercompany partner.

Investment Link rules

  1. In the Investment with Partner Eliminations rule-set, click Investment - Goodwill Offset to open the rule.
    Investment - Goodwill Offset PELIM
  2. Change the name of the rule to Investment - Investment Link and the description to Investment Link.
    Rule Name
  3. In the Target Redirection area for Account, replace Goodwill Offset with Investment Link. You can enter the member name or browse to select it from a list.
    Account Redirection
  4. In the Target Redirection area for Movement, click minus (-) to remove the existing condition.
    Remove button
  5. Replace the existing value with Changes in Other Investing Activities.
    Movement Redirection
  6. Click Save and Close to return to the rule-set list.
  7. Click the ellipsis for the Investment - Investment Link rule and select Duplicate.
    Duplicate Option
  8. Click Investment - Investment Link_Copy to open the duplicate and change the rule name to Investment - Investment Link PELIM.
    Rule Name
  9. In the Processing Option list, select Subtract.
    Processing Option
  10. Click Enable Partner Elimination.
    In the Target Redirection area, the Source POV Intercompany and Source POV Entity keywords are added, and the Data Source member is set to Partner Eliminations.
  11. Click Save and Close to return to the rule-set list.

Deploying the rule-sets

  1. In the rule-set list, select the check boxes for the following rule-sets:
    • Owners Equity (Subsidiary/Proportional)
    • Owners Equity (Subsidiary/Proportional) PP
    • Owners Equity (Equity)
    • Owners Equity (Equity) PP
    • Owners Equity (Holding)
    • Net Income (Subsidiary)
    • Net Income (Equity)
    • Investment With Partner Elimination
      •
  2. Click Deploy.
    Deploy button
  3. At the Information dialog box, click OK.
    Informatino dialog box
  4. Click Close.
  5. Click Home icon (Home) to go to the home page.

Running consolidation and reviewing results

In this section, you run consolidation and review the calculation results for the rules you created.

  1. From the Home page, click Data.
    Data card
  2. Open the Reference_Application folder, then the Consolidation_Rules folder, and click Investments with Partner Elim.
    Forms list
  3. In the data form, right-click a cell in the column for Legal Entity 0012 (USD) to display the pop-up menu, and then select Consolidate.
    Legal Entity 12 column
  4. Verify the following member information in the Consolidation dialog box, and then click Launch.
    • Entity: LE-0012-USD
    • Scenario: Actual
    • Period: Jan
    • Year: FY18
    Consolidation dialog box
  5. At the Information dialog box, click OK.
    Information dialog box
  6. Scroll the rows to review the data for Investment Link and Goodwill Offset.
    Note that the consolidation process for Legal Entity 0012 wrote data to both Legal Entity 0012 and its partner, Legal Entity 0014. The Investment - Investment Link rule wrote the value for Legal Entity 0012 > Investment in Sub > Legal Entity 0014 ICP to Legal Entity 0012 > Investment Link > Legal Entity 0014 ICP > Intercompany Eliminations. The Investment - Investment Link PELIM rule used partner elimination to write a reversing entry to the subsidiary: Legal Entity 0014 >Investment Link > Legal Entity 0012 ICP > Partner Eliminations. The Investment - Goodwill Offset PELIM rule used partner elimination to write the value for Legal Entity 0012 > Investment in Sub > Legal Entity 0014 ICP to the Investment Link account of the subsidiary: Legal Entity 0014 > Investment Link > Legal Entity 0012 ICP > Partner Eliminations.
    Consolidation Results
  7. In the data form, select the column for Legal Entity 0014 (USD).
    Consolidation Entity 12 column
  8. Repeat steps 4 to 5 to consolidate Legal Entity 0014 (CAD).
  9. Review the consolidation results.
    For Legal Entity 0014, the Owners Equity - Goodwill Offset rule in the Owners Equity (Subsidiary/Proportional) rule-set applied the holding company's ownership percentage to Total Equity, and wrote the amount to the Goodwill Offset account. The sign was reversed because the rule is posting from an Equity account to an Asset account. This offsets with the entry written to Legal Entity 0014's Goodwill Offset account by the partner elimination from Legal Entity 0012. The Minority Interest rule in the same rule-set applies the minority interest ownership percentage to Total Equity and writes it to the Minority Interest account.
    xxx

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