Define Consolidation Types - the Define Tab
Procedure
- On the Maintain menu, click Company Structure/Consolidation Types - Define. The Consolidation Types - Define window opens.
- On the Define tab, click the New button. The Default settings are that the new consolidation type is Active and Manual, Acquisitions is Legal, Intercompany Balances is Legal and Group Journals is indicated.
- In the Code text box, enter a consolidation type code. The code can consist of no more than two characters.
- In the Name - Group and Name - Local text boxes, enter the name of the consolidation type in both group and local languages.
- Select the Active check box if you want to make the consolidation type accessible in list boxes and for data entry.
- Select Manual if you want to enter
ownership information manually in the Define Company Structure window
or clear the check box to let the program automatically calculate
ownership information.
- Combination Manual - Legal structure: The ownership relations are calculated on percentages from Define Company Structure.
- Combination Manual - Management structure: The ownership relations are calculated on percentages from Define Company Structure.
- Select the Automatic if you want
to retrieve ownership information from the Shareholdings and Investments
register.
- Combination Automatic - Legal structure: Ownership relations will be retrieved from the Shareholdings and Investments register.
- Combination Automatic - Management structure: the percentages will be retrieved from the associated activated legal consolidation structure.
- Select Acquisitions - Legal or Management.
Select Legal to eliminate acquisition calculations where the subsidiary and parent company meet in the consolidation structure.
Select Management to eliminate acquisition calculations in the subgroup containing the subsidiary, regardless of which group the parent company belongs to. In the current program version you cannot calculate ownership information for management structures, that is, if you have not selected Manual Consolidation Type.
- Select how to handle Intercompany Balances in the consolidation,
the Legal or Management method.
Legal consolidation means that the elimination of intercompany balances will take place in the group where the companies meet in the company structure.
With Management consolidation, the elimination of intercompany balances will take place on the lowest level where the company itself belongs, no matter where in the company structure the counterpart is located. The offset account will, for sure, only be zero (0) on the top group in the structure. With management consolidation you are able to see how much the company has contributed to different groups in the structure. Management consolidation is not applicable for structures with cross-owned companies.
If you select Legal, you have to select Group Journals or Company Journals.
Note that storing on group journals is recommended, since this use less space in the database. The automatic journals for intercompany elimination and differences are stored on the group code, in the currency of the group. One journal is created per group and journal number. If you select Company Journals, the automatic journals for intercompany elimination is stored on the company itself in the currency of the group and with an offset account as counter account. You can choose to store the difference on the creditor or on the debtor. One journal is created per company and journal number. For detailed information about the elimination, run the reconciliation report.
The default settings are that Intercompany is Legal and Group Journals, with the option to have Company Journals. Management only have Company Journals.
- Click Save.
- Click Close or continue by opening the Reorder tab.