Wednesday, 13 April 2016

...Org by Period

Recently, in the OTN forum, we were discussing the functionality of Org by Period.

Org by Period specifies whether the application allows new consolidation structures to co-exist with previous consolidation structures in the same application.  If it will be set to ‘Y’, it will enable the functionality to activate or deactivate legal entities by reporting period.

As an example, let's consider entity AB which should be consolidate to parent A for period P1 to P3 and then consolidated to parent B for periods P4 to P12. In order to achieve this, in the Ownership management module the entity would be flagged as Active under parent A for periods P1 to P3 and then it will be flagged as Inactive. For periods P4 to P12, the entity will be flagged as Inactive for parent entity A and Active for parent entity B.

Based on this, the parent entity A would retain the values on a YTD basis for only the data that came from P1 to P3.  Data from periods P4 to P12 would be only consolidate to Parent B.

Finally, the metadata would show the entity underneath both Parent A and Parent B, though the various metadata selector dialogs have a "show active only" button when you want to show only the current period's active structure.

Cheers,

Thanos

Sunday, 3 April 2016

...the consolidation functionality

It is two days before the end of the year-end reporting period and at 4:50 pm the helpdesk receives a new ticket with title “Consolidation of subsidiaries and NCI query”.

Silence in front of my screen… the subject of the ticket is quite worrying for such a week and as I read further down the situation becomes even worst.  The request of the user was to explain how the system calculates the NCI for specific subsidiaries, why the closing balance was 150.000$ and what the movement consolidation movement represents. A lot of questions….

Proem

Until today, I have seen four approaches in consolidating the values of an entity to the parent entity.
  • The first approach is to create manual journals at "Entity Curr Adjs". This journal will be posted both at the subsidiary and at the consolidation entity of the group.
  • The second approach is to use the Sub Calculate and the function HS.Exp in order to populate specific members or consolidation accounts at the value dimension members "Entity Currency" / "Entity Curr Adjs".
  • The third approach is to use the Sub Calculate and the function HS.Exp in order to populate specific members or consolidation accounts at the value dimension members [Proportion] / [Elimination].

...Restatements

One of the topics that I have spent time on is to understand the most efficient way to restate reported data in HFM. On one side, ...