Define Company Structures

Complete the following steps to define the company structure.

Procedure

  1. On the Maintain menu, click Company Structure/Define.

    The Define Company Structure window opens.

  2. On the Define tab, in the Consolidation Type text box, enter the consolidation type for which you want to define a company structure. Consolidation types are defined in the Consolidation Types - Define window. The consolidation type determines what type of company structure you are defining and also if the ownership information should be calculated automatically or entered manually.
    Note: Only one top group is supported for each consolidation type.
  3. In the Period text box, enter the period in which the company is acquired or the period included in the version of the structure you want to view and to which the company belongs. The default period is the period defined in the Personal Defaults, Default Codes (1) tab.
  4. Click the New button. All fields are cleared for entry.
  5. In the Code text box, enter a company code consisting of no more than six characters.
  6. Clear the Active check box if you do not want the company to appear in list boxes.
  7. In the Name - Group/Name - Local and Short Name - Group/Short Name - Local text boxes, enter the full as well as the short version of the company name. The short name can be used when printing customized reports and diagrams if there is not enough space for the whole company name.
  8. In the Local Currency text box, enter the currency code to be used for reporting in local currency.
  9. In the Country or Region text box, enter the country or region code. This can be used for tax calculations and is optional.
  10. Click Save.
  11. Select the relevant company type option:
    • Subsidiary, and Valid Counter Part: Select this option to make the company selectable as a counter part for intercompany transactions in the data entry.
    • Group and Legal Unit
    • Group Adjustment Company
    Note: If you edit a company type, disconnect from the tree structure before you change the company type.
  12. Select the relevant currency translation method option button:
    • Method 1 - for the current method
    • Method 2 - for the MNM method
  13. In the Except This Currency text box, enter the currency code to be excluded from the conversion method defined above.
  14. In Connected to, select the group company to which you want to connect a company. You can connect the company to up to ten groups but only one group at a time. The group affiliation for the company can vary between different consolidation types. The text box can be left empty if the company is not going to be consolidated or if it is the top group.
  15. Select the Parent check box if the company is a parent company in the defined group. The parent option is applicable only for subsidiaries.
  16. Enter the method for how to consolidate the company as well as percentages of votes and ownership. Select Manual if you want to change the related automatically calculated information. If it is still selected when running Calculate Ownership relations, it will not be affected by the calculation.
    • Consolidation Method: Shows the Consolidation Method to be used to consolidate the group and to perform acquisition calculations. This information can either be calculated automatically or entered manually depending on the settings in the Consolidation Types - Define window for the current consolidation type.
    • Votes %: The group's percentage of the votes. This can be expressed with six decimals.
    • Owned %: The group's percentage of owned share capital in the subsidiary. This can be expressed with six decimals. This information is used to calculate the minority share or to divide the correct share in the group.
    • Indirect Minority %: The indirect minority based on minorities on a higher level in the company structure. By default, the value is 0, as this is calculated when generating the company structure. Values are only entered for manual management structures (Manual must be selected in the Consolidation Types - Define window).
    • Indirect Equity %: The Indirect Equity based on equity groups on a higher level in the company structure. By default, the value is 0, as this is calculated when generating the company structure. Values are only entered for manual management structures (Manual must be selected in the Consolidation Types - Define window).
    • Indirect Split %: The Indirect Split option is not in use in this version of IBM® Controller.
  17. Click Save.
  18. Close the window or open the Generated View tab. The company structure is generated.

Results

  • The following options are currently not in use: Details and Consolidation at Sublevels, No Details Below, and Not Consolidated at Sub Levels.
  • If you are defining many groups, create a code series for different subgroups. This is especially important if each subgroup is going to create its own structures as it will prevent the same company code from being used in several locations.
  • All available companies are displayed in the list box. The user rights determine which companies you have write access to. Some companies may also be included in lock groups by the administrator and are therefore locked for changes. To change a locked company you need a password, which you can obtain from your IBM Cognos® administrator.
  • Circular ownership (A owns B and B owns A) cannot be entered in the company structure. This situation has to be defined in Data Entry - Shareholdings and Investments in Group Companies (Automatic Consolidation Type).
  • The consolidation structure will be generated when you have run the Calculate Ownership Relations.
  • When a company is defined as a Group, you can select the option Legal unit. If Legal unit is selected, period data is entered on sub-units, that is, companies connected to the legal unit. Note that Investments will be entered on the sub-unit. Legal units are consolidated in a separate routine.
  • In the list of companies, there is a folder called Not Connected to XX, with XX representing the applicable consolidation type. This folder contains all the companies you have not connected to any group in the specific structure.