Calculate Ownership Relations Automatically

Calculating ownership relations automatically is performed different depending on if the company structure is manually or automatically generated.

Manually Generated Management Company Structure

In a manually generated company structure, the user must provide all company information and its relations to the top group. All information provided on the Company Structure - Define tab is transferred to the Generated View tab and applied to all above levels when generated. A manually generated management company structure has no direct correlation to a legal structure.

You can have two different approaches when working with legal units:

The sub-units of a legal unit are directly connected. The fictive group is identical to how it is defined in the legal company structure. The sub-units will in this case get the same owned percentages and ownership with purchase consolidation method.
At least one of the sub-units is connected to another group than its legal unit. The legal unit is in this case not allowed to be included in the manually generated management company structure since its consolidated values would be false in correlation to the legal company structure. The sub-unit's percentages will possess the legal unit's percentages.

Group companies from the legal company structure should not be reconnected.

Automatically Generated Management Company Structure

An automatically generated management company structure has a direct connection to an existing legal structure from which it will retrieve all company information. It is a company's relation to the top group in the associated legal structure, an active choice by the user, that is transferred and which is applied to all levels in the automatically generated management structure. It is the information of subsidiaries, parents and sub-units that shall be used.

Notes:

Transferred legal units shall not be used, the sub-units will have the legal unit's percentages.
All new defined groups in the automatically generated management company structure is considered to be connected with 100% in both the owned percentage and the ownership together with a purchase consolidation method.
Group companies from the associated legal structure should not be reconnected.
Sub-units shall never be connected to their legal unit in an automatically generated management company structure as the sub-units have the legal unit's percentages.
In order for the company structure to be generated you must run the calculate ownership relations function.

Change Ownership Relations Manually - the Define Tab

Even if the ownership relations and the consolidation method have been created automatically, you can change the information manually through the Edit button, by selecting the Manual check box on the Define tab in the Define Company Structure window. Once you have done this, you can make the relevant changes. A manual change to the percentages or consolidation method on this tab immediately affects the corresponding information on the Generated View tab.

In some cases, if you perform a manual update, you should recalculate the company structure using the Calculate Ownership Relations function. The change might affect the consolidation method and ownership for the manually changed company and for other companies within the consolidation type. Ideally the consolidation method should be changed and not the owned percentage. The consolidation method can then affect the calculation of ownership and minority share.

If you change the ownership or the owned percentage in the shareholdings register and you select the Manualcheck box on the Definetab, the shares will not be updated when you run the automatic calculation once more using the Calculate Ownership Relationsmenu. Clear the Manualcheck box if you want to update the information the next time you calculate the ownership relation automatically.

Change Ownership Situations Manually - the Generated View tab

Even if you create the ownership relations and the consolidation method automatically, you can change the information manually by selecting the Manual check box on the Generated View tab in the Define Company Structure window, and then make the relevant changes. For groups at higher levels than the one the company directly belongs to, you can only make manual changes to the company's ownership relations on the Generated View tab.

If you change the consolidation method or ownership on the Definetab in the Define Company Structurewindow, it subsequently affects the corresponding ownership relations on the Generated Viewtab in the Define Company Structurewindow. However, not all ownership relations, for example change of consolidation method in groups at higher levels, will be changed automatically. You can only change them automatically if you run a new calculation of the ownership relations or if you make manual changes to the ownership relations directly on the Generated Viewtab.

If you change the ownership or the owned percentage in the shareholdings register and you select the Manual check box on the Generated View tab, the percentages will not be updated when you go back and run an automatic calculation using the Calculate Ownership Relations menu. Clear the Manual check box if you want to update the information the next time you calculate the ownership relation automatically.

Changes in Time

When you change the conditions relating to the group affiliation, that is, the owned percentage, ownership, parent company, top group or consolidation method, and when you calculate ownership situations for the company structure, a new version of the consolidation structure is created with reference to a period and a consolidation type.

For more information, see Define Company Structures - the Define Tab and Define Company Structures - the Generated View Tab.