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BPC10: Decision to use BPC Consolidation

Former Member
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Hi gurus

I have come across a simple consolidation requirement where in the holding company has two entities, which are fully owned. There are only few (12, monthly) transactions to pay management fee from one entity to another. Now to do the consolidation, I believe it make sense to just create journal entries instead of seting up whole consolidation model setup.

What do you guys think is best way to recommend in this case and what could be to and for argument for using BPC in this scenario for consolidation. If we plan to do journal entries only, what are the things required to be setup.

I am no expert in financial consolidation side and any pointers would be great to go ahead.

Thanks

-SM

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

Financial consolidation is about currency conversion, elimination of investments and elimination of IC transactions.

Ýou might not have to deal with currencies but even in a three entity situation you will have investments and IC transactions.

My first question would be whether the status quo will remain stable (3 entities) or whether the group is likely to grow. If it is likely to grow I would set up a full consolidation system now so the users can get used to how it works in a simple environment.

If the group is likely to remain as it is now you could potentially just use manual journals. It might be an idea though to also ask the auditors (if there are any). A rule based cons system will create more confidence in the numbers than manual journals.

BR,
Arnold

Former Member
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Thanks Arnold for your reply.

I have little more details about it. there is a company A, which is owned by B. B and C are owned by D. D is not a legal entity but just there for management to see the consolidated statements.

The number of inter company transactions are very low.

I am thinking about using US elimination business rule for this requirement as we do not need IC matching or FX adjustments.

-SM

Answers (0)