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Administrator Guide
Last Updated: 2024-09-20
Example: Set Up Proportional Consolidation

Example: Set Up Proportional Consolidation

This example illustrates how to set up proportional consolidation for a single company.
Global Modern Services S.P.A (Italy) owns 90% of Global Modern Services Ltd. (Ireland). As an accountant for Global Modern Services Ltd. (Ireland), you want to see the ledger account balances of the percentage owned for internal reporting. In this scenario, you want to see 90% of the ledger account balances in each ledger account.
  • Set up a company that is owned by 2 other companies that own 90% and 10% each.
  • Security:
    • Set Up: Allocations
       in the Financial Accounting functional area.
    • Set Up: Ledger and Book
       in the Common Financial Management functional area.
  1. Access the
    Maintain Book Codes
     task.
    1. Add a row to the grid and enter
      Proportional Consolidation using a Book Code
       in both the
      Name
       and
      Description
       columns.
    2. Click
      OK
       and
      Done
      .
  2. Access the
    Maintain Books
     task.
    1. Add a row to the grid and enter these values:
      Name
      Description
      Includes Book Codes
      Includes Blank Book Code
      Tenant Default
      Proportional Consolidations
      Proportional Consolidations
      Proportional consolidation using a book code
      Select
      Leave clear
    2. Click
      OK
       and
      Done
      .
  3. Access the
    Create Financial Condition Rule
     task.
    1. Enter
      Exclude Current Year
       in the
      Description
       field.
    2. In the
      Rule Conditions
       grid, enter these values:
      And/Or
      Source External Field or Condition Rule
      Relational Operator
      Comparison Type
      Comparison Value
      And
      Ledger Account
      not in the selection list
      Value is specified in this filter
      3200:Retained Earnings - Current Year
    3. Click
      OK
      .
  4. Access the
    Create Allocation Definition
     task.
    1. In the
      Details
       section, enter these values:
      Option
      Description
      Allocation Definition Name
      Proportional Consolidation for GMS (Ireland) book code only
      Currency Rate Type
      Current
      Account Set
      Corporate
      Fiscal Schedule
      Standard Corporate Schedule
      Used By
      301.11 Global Modern Services Ltd. (Ireland)
      Create Reversal
      Leave clear
      Balancing Fund
      Leave clear
    2. In the
      Information
       section, enter these values:
      Option
      Description
      Inactive
      Leave clear
      Reference
      Leave clear
      Description
      This allocation definition calculates the noncontrolling interest for GMS (Ireland), for use in subconsolidations reporting.
    3. In the
      Source
       section, enter these values:
      Option
      Description
      Source Type
      Ledger/Plan Structure
      Allocation Percent
      10
      Currency
      EUR
      Ledger/Plan Structure
      Actuals
      Book Code
      Leave clear
    4. In the
      Source Filter Conditions
       table, select
      Corporate: All Accounts
       from the
      Ledger Account/Ledger Account Summary
      column.
    5. Select
      Exclude Current Year
       from the
      Financial Condition Rule
       prompt.
    6. In the
      Basis
       section, enter these values:
      Option
      Description
      Ledger/Plan Structure
      Actuals
      Allocation Method
      Spread Even
      Dimension
      Cost Center
    7. In the
      Basis Filter Conditions
       table, add a row and select
      Cost Center: 31000 Operations Management
       from the
      Worktags
       column.
    8. In the
      Target
       section, enter these values:
      Option
      Description
      Ledger/Plan Structure
      Actuals
      Company is from
      Source
      Ledger Account is from
      User Specified
      Ledger Account
      3500:NCI Equity
      Book Code
      Proportional Consolidation using a book code
    9. In the
      Offset
       section, enter these values:
      Option
      Description
      Company is from
      Source
      Ledger Account is from
      Source
    10. In the
      Worktag Mapping
       table, add these rows:
      Worktag Type
      Worktag Value is from
      Cost Center
      Source
      Region
      Source
      Supplier
      Source
      Customer
      Source
      Revenue Category
      Source
      Spend Category
      Source
      Project
      Source
      Intercompany Affiliate
      Source
    11. Click
      OK
       and
      Done
      .
Use the new allocation definition in an allocation group set.