Hi experts,
We are running the first consolidation on 2021 DEC. This period contains the cumulated figures till 2021 DEC since it is the first period uploaded in GR as will be the starting point to generate the consolidated FFSS.
Our version is S4 2021 SP2 OP and the method of consolidation is Activity based Consolidation.
Our strategy contemplates to upload the local currency figures for the companies in this period and run all the processes to get the consolidated figures (calc net income, currency conversion, IC elims and COI automatic adjustemts).
For this we have enriched the migrated local finacial statements with the C/I activity type "01 - First Consolidation" for GR to be able to generate the fist consolidation document (this flag was entered to all investments and equity fs items)
In this process we noticed that GR was generating wrong Goodwill values in the fs item "Goodwill Elim" due to the equity values for the companies in 2021 DEC were not aligned with the equity at the moment of the purchase or fundation of the company (companies were funded or acquired in previous years than 2021)
Could you share what should be the most common approach to set up the fist consolidation period in order to get the proper Goodwill generated by the system?
Do we have to manually adjust the input for investments and equity to reflect the picture in the local FFSS at the time the purchase of the company was done? If so, what should these adjustments look like? Doing this, how do we keep aligned local ffss of the companies in the period of the fist consolidation?
Is there an alternative way of changind the set up of the goodwill automatic adjustment in the GR consolidation engine using Activity based COI to facilita the fist consolidation adjusment?
Thanks!