Review specific information about the rule and calculation of a rule.

To view the details of a rule, select the checkbox next to a rule. The table describes the columns in the Consolidation Rules Configuration screen.

Consolidation RuleDescription
Source AccountUsually, the source account is blank as it uses the Account in the Attribute table. There may be situations where the account in the Attribute table triggers a rule, but the actual calculation is performed on a different account, which would be specified in the Rules Details.
Source Movement

Specify the specific Movement member for the consolidation rule. Usually, this field is set to All_ for Balance Sheet Rules, which means that the rule will be applied to all movement members. 

It should be set to Closing for Income Statement rules.

Source Time

Specify the source time period to be used in the consolidation rule. The available options include:

  • Current: Users the YTD amount of the Period being calculated.
  • Periodic: Uses the periodic amount of the period being calculated.
  • PriorYear: Retrieves the P12 YTD amount of the previous year.
  • PriorPeriod: Use this parameter to retrieve the previous Period YTD amount. If calculating March YTD, Financial Consolidation will retrieve February YTD.
  • Periodic (Calculate YTD): Use this to calculate the current Period YTD amount by multiplying the current periodic amount by the ownership rate and then adding that result to the previous Period YTD amount.
    This calculation provides a YTD blended rate. It assumes that you are using the same account to calculate YTD.
  • Periodic (Calculate YTD from source): It's similar to Periodic (Calculate YTD) except when it's used when customers want the calculated amount stored in a different account than the source account.
  • Periodic (Calculate YTD from source) Invert: It's the same as Periodic (Calculate YTD), except the sign is inverted. This is required for accounts that have different Debit or Credit attributes.
SignSpecify the mathematical operator to be used in the consolidation rule.
Account

Select the target account that is calculated if different from the account to which the rule was assigned. 

If left blank, the target account is the same as the account to which the rule was assigned.

DescriptionIt's the account description taken from the Data Model.
Movement

It's used to specify the target Movement member. 

If left blank, the target movement will be the same as the source movement.

Force ClosingIf a consolidation rule calculates a specific Movement member, such as Additions, this field automatically re-calculates the Closing member, to avoid having to create too many rules.
IntercompanyThis field is used to specify the Target Intercompany member. Usually, this field is left blank, which means that the consolidation rule is applied to all Intercompany members.
Force Intercompany

This field automatically calculates the Intercompany Total, leaf member to ensure that the details by trading partner equals the Intercompany Total, leaf member.

This is used when customers load intercompany details in the trading partner members and also use a Total Intercompany leaf member to load the total of all trading partners. The Force Intercompany parameter calculates the Total Intercompany leaf member.

Swap Equity AccountThis field is used to specify the Investment in Associate / JV account for Equity method calculation.
DescriptionIt's the description of the Swap Equity Account.
Repartition

Repartition rules are used to define the ownership rate to use based on Entity and Intercompany consolidation method combinations. 

A pre-configured repartition rule can be selected or a new one can be created and assigned. 

Refer to the next section for more details on repartition rules.

Repartition-Type

Use this field to specify the repartition or distribution between the minority and the group amounts. The available options include:

  • 100%
  • Group Part
  • Minority Part
Invert

This parameter transfers calculated amounts from the entity being calculated to another entity. 

For example, when calculating Equity Pickup, the Equity Entity is used as the source entity, but the calculated amount is stored in the Holding company.

Repartition

Repartition Rules

Repartition rules are used to define the ownership rate to use based on combination of Entity and Intercompany consolidation methods. Several repartition rules have been pre-configured, and can be found in the Consolidation card under the Maintenance module. 

To open the Repartition Rules, select the Maintain module and the Repartition Rules link under the Consolidation card.

Certain rules used in the NCI, Equity Pickup, and Intercompany Elimination consolidation rules are rarely changed. 

  • NCI: Several NCI rules use the StockHolderEquity Other repartition rule, which has three components required to calculate NCI. Set the StockhoderEquity Other rule to:
MethodRepartition TypeFormula
Global100%100%
GlobalGroup Part[Pown]
GlobalMinority Part1-[Pow]
  • Equity pickup: These rules use the StockHolderEquity EM repartition rule. Set the StockholderEquity EM rule to:
MethodRepartition TypeFormula
Equity100%[Direct]
EquityGroup Part[Direct]
  • Intercompany eliminations: These rules use the Intercompany Elimination repartition rule. Set the Intercompany Elimination rule to:
MethodIntercompany MethodRepartition TypeFormula
ProportionalProportional100%CASE when [Pown]<[IntercoPown]then[Pown]else[IntercoPown]END
ProportionalHolding, Global100%[Pown]
EquityHolding, GlobalGroup Part[Pown]
EquityEquityGroup PartCASE when [Pown]<[IntercoPown]then[Pown]else[IntercoPown]END
Holding, GlobalHolding, Global100%100%
Holding, GlobalProportional100%[IntercoPown]
Holding, GlobalHolding, GlobalGroup Part100%
Holding, GlobalEquityGroup Part[IntercoPown]

Repartition Rule Details

To view details of a rule, select the checkbox next to a rule. The table describes the columns in the rule details form.

HeaderDescription
Method

The method refers to the specific approach used to allocate or distribute financial amounts between different accounts or entities. The value can be:

  • Holding
  • Global
  • Proportional
  • Equity
  • Sold
  • Sold During Year
  • Holding, Global
  • Equity, Proportional
  • All_Except_Sold

Additional Methods can be added in the Methods form under the Consolidation card

Intercompany Method

The intercompany method defines how transactions between different entities within the same group are handled. It ensures that intercompany balances are eliminated during consolidation. 

The value can be:

  • Holding
  • Global
  • Proportional
  • Equity
  • Sold
  • Sold During Year
  • Holding, Global
  • Equity, Proportional
  • All_Except_Sold
Shares Method

This method determines how ‌ownership shares of different entities are allocated. This method is crucial for calculating the distribution of profits, losses, and equity among ‌shareholders. 

The value can be:

  • Holding
  • Global
  • Proportional
  • Equity
  • Sold
  • Sold During Year
  • Holding, Global
  • Equity, Proportional
  • All_Except_Sold
Repartition Type

This field ‌specifies the repartition or distribution between the minority and the group amounts. The available options include:

  • 100%: This parameter reverses the entire amount to be distributed to the Group and Minority accounts.
  • Group Part: This parameter distributes the 100% amount to the Group account based on the Ownership Rate.
  • Minority Part: This parameter distributes the 100% amount to the Minority account based on the Ownership Rate.
FormulaSpecifies the formula that'll be used for the calculation.

Consolidation formulas can be created, duplicated, or deleted in the Consolidation Formulas form under the Consolidation card. 
Opening Method

This method specifies how the initial balances are allocated at the beginning of the period. This is important for starting the right way to report money and making sure the repartition rule is followed consistently. The opening method can be based on several criteria, such as the previous year's closing balances, initial investments, or any predefined allocation ratios. 

The value can be:

  • Global
  • Holding
  • Proportional
  • Equity
  • Sold
  • Sold During Year
  • Holding, Global
  • Equity, Proportional
  • All_Except_Sold
Prior Method

This method determines how the financial data from previous periods are treated in the current consolidation process. This method is essential for ensuring consistency and comparability across reporting periods. It can involve moving forward balances, fixing mistakes from the past, or changing certain amounts based on changes in ownership or accounting rules.

The value can be:

  • Global
  • Holding
  • Proportional
  • Equity
  • Sold
  • Sold During Year
  • Holding, Global
  • Equity, Proportional
  • All_Except_Sold