I have following question and appreciate the inputs..
Q1. For 'Equity holding Adjustments' if the share in the net profit of the 'Investee' is to be accounted thru journal entry in ECC. normally what should be the entry like..( Debit and credit part).
Should the share in the netincome be accounted as P&L account or balance sheet account.
Q2. Question is based on following example...
For example Company A has invested in 5 external company and all are minor shareholding (approx 10%) and accounted thru 'Equity method'.
Now there is only one GL account called investment . What is the best way to maintain the investment values agsaint each 5 external company, but there is only one 'Investment account' under equity method.
It wants to uniquely identify the 5 different investment value seperately updated for 'Share in Netincome' on periodical basis. Is maintaining 5 different GL account for investment is better or is there way around for this.. but maintaining only one GL account?
It prefers to enter these entries in ECC. What is the pros and cons of entering these entries in ECC versus BCS?