Generate Automatic Journals for Acquisition Calculations

You use this function to eliminate investments in subsidiaries in the parent company and the equity in the subsidiary by generating automatic journals on the basis of the control tables that have been defined.

The calculations of acquisitions also include handling of OB and currency translation of acquisitions. You perform the calculations at each closing of the books, even if nothing has changed in the investment elimination template.

The steps below describe what you need to take before you can run the acquisition calculations. Please note that steps 1-3 are performed initially and steps 4-7 at every closing of the books.

Procedure

  1. Enter the investment elimination template for each owned company. This step is performed initially.

    For more information, see Enter an Investment Elimination Template.

  2. Activate the automatic journals needed for the calculations of acquisitions. This step is performed initially.

    For more information, see Generate Automatic Journals for Acquisition Calculations.

  3. Define the control tables for automatic journals. This step is performed initially.

    For more information, see Define Control Tables.

  4. Update the company structure and the shareholdings and investments in group companies. This step is performed at every closing of the books.

    For more information, see Company Structures, and Enter Shareholdings and Investments in Group or External Companies.

  5. Enter or import the period values for each owned company. Also, enter manual adjustments, company journals, if applicable. This step is performed at every closing of the books.

    For more information, see Report Data, and Company Journals as Journal Entries.

  6. Perform the needed reconciliation. The most important reconciliation are the reconcile between accounts and opening balances and the reconciliation reports for investments and the investment elimination template. This step is performed at every closing of the books.

    For more information, see Company Reconciliation, Reconcile Shareholdings and Investments, and Reconcile the Investment Elimination Template.

  7. Run all the previous steps in the consolidation process, currency translation, elimination of intercompany balances and profit and finally the acquisition calculations.
    Note: You can obtain calculated transactions based on the company’s reporting, and not only on entries in the investment register in the elimination, if there are period values entered for the companies in the group. For example, you can only calculate the minority share under the assumption that there are period values entered in the actual subsidiary.