Define Control Tables - Elimination of Investments, All

Here you define how the eliminations of investments in subsidiaries will be performed on the subsidiary. This table is suitable to use when you do not have balance control in the investment register, meaning you will use the investment accounts (plus any surplus value accounts). Thus the amounts from the parent company will be used as basis for the calculation. The journal is booked on the subsidiary in a strictly legal structure.

Procedure

  1. On the Maintain menu, click Configuration/Automatic Journals/Control Tables/Acquisition Calculations. The Control Tables - Acquisition Calculations window opens.
  2. Select control table E106, Elimination of Investments, All. Click OK.
  3. Enter a journal number between 1 and 99.The automatic journal type is displayed automatically.
  4. If necessary, enter the closing version and journal type you want to use as basis for the calculations. If you leave these text boxes empty, reported values and manual company journals will be used as basis for the calculations and the automatic journal will be booked on the same journal types as the original values.
  5. In the From Account column, enter the accounts valid as basis for elimination on the subsidiary.
  6. In the Sign column, usually you enter a minus sign as the amounts in the investments register are booked on credit. A plus sign means that the same sign will be used as in the acquisition register.
  7. In the To Account (OB), enter the OB account belonging to the selected To Account for change.
  8. In the To Account (change) column, enter the accounts where the elimination should be posted.
  9. Enter an offset account, either in the upper part of the window or in the To Account column using the same From Account as for the actual Change Account. An account must be entered in order to balance the journal, unless you book the difference on other accounts. The offset booking will only handle balance type To Accounts (A, L, E, I and C). Using No Balance Control, you should use the account Investments in Subsidiaries plus any surplus value accounts for the From Account field.
  10. Click Save.

Results

  • Using E106 is often used for Consolidated Reserves. If you have a non integrated reserves specification, you need to have both the detailed account and the main account as To accounts.
  • The offset account for control table E100, E105, E106, E110 and E115 are usually the same so that automatic journals make a zero sum to the offset account in the consolidated group.