** DeveloperWorks - ProvenPractice ** How to to set up General Configuration and Automatic Journals

Cause

Automatic journals are elimination or calculations that are booked as journals on companies and groups. They can be based on either data in the period database (xdb) or the investment register (xacq).

Where the automatic journals are booked are affected by the consolidation type (legal or management) and how the company structure is built.

You activate and define basic configuration of the automatic journals in Maintain / Configuration / Automatic Journals / Define. Then you define which accounts to be involved in the calculation in Maintain / Configuration / Automatic Journals / Control Tables / Acquisition Calculations. Though, how the account structure is defined, with summations, reconciliation and conversion codes etc, also affects the automatic journals. Settings in General Configuration, mainly in the tab Reconcile 2 (or Reconcile if you run the old consolidation model) also have an impact on how the elimination is recorded.

This document also shortly describes how to set up the control tables depending on which of three consolidation set ups you select:

• The Standard model used mainly in USA, Germany, Sweden, Switzerland and the United Kingdom. The standard model uses the investment register as basis for some of the elimination.
• The Latin model used mainly in Belgium, Spain, Italy and France.
• Investment adjustment model, used mainly in the Netherlands, Denmark, Iceland and Canada.