Equity Holding Adjustment
In my project they want all the Equity Holding adjustment entries to happen ECC, but donot want the configuration for Equity holding adjustment either to be read from u2018totalsu2019 or AFD.
This is for all consolidation units using u2018Equity methodu2019. For nearly 100 CU.
Has some one experience such scenario. What is the consequence of this in consolidation? Please share your thoughts /experience.
Edited by: Gokul on Sep 7, 2008 2:39 AM
Dan Sullivan replied
1) it makes little difference whether the posting is made in ECC or BCS. The one possible advantage to using BCS is that there will be a unique document type and posting level so this may be eliminated as is the case with scenario mentioned in question 2.
2) It is expected the entry for B's 8% share of earnings/losses in C are posted on B's books and not C's. To avoid this being included at the higher level where the ownership is accounted for using purchase method, it is necessary for this to be eliminated. This may be accomplished with elimination method/task or reclassification method/task with posting level 20 document. For this elimination to only be recognized at the higher level, the partner unit must be A and not C.
3) The only drawback of this approach is that the dividend entry must be eliminated as with the earnings/losses where purchase method is applicable. This may be accomplished using elimination method/task, but it will only work correctly with a partner unit of A.