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Former Member

Intercompany eliminations

Hello All,

I have a scenario where I have a parent company A with a wholly owned subsdiary B and we do have configured the interco eliminations between A and B.

Now B has a wholly owned subsidiary as C and we have to consolidate this model which post certain questions:

1. Shall we eliminate as usual between B and C and later C to A

2. What if the business wants to see reports on Level A ? In that case we need to eliminate between C and A too. How can we achieve that and currency elimination also ?

Let me know your inputs.

Appreciate it !

Suyash

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3 Answers

  • Best Answer
    Sep 19, 2017 at 09:32 PM

    Hi Suyash,

    The currency conversion is pre-requisite for consolidation. CTA usually is calculated here. Plus CT will bring the base data to group level.

    When you run Elimination and Adjustments business rule, you cannot run specific rules, BPC run all Elimination and Adjustments rules setup for the model in question.

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  • Sep 18, 2017 at 10:29 PM

    You do not need to run separate consolidations. BPC will take care of everything.

    What will happen is that every elimination is posted against the first immediate parent group and upwards (parents of the group).

    So if you have a parent above B and C (let's say G_1) and then another parent above G_1 and entity A (let's say G_2), an elimination between B and C will be posted against G_1 and also against G_2.

    This is considering you're using normal consolidation. With US is similar but a bit different.

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    Former Member
    Sep 19, 2017 at 05:27 PM

    Appreciate the input Lucas. So will the currency fx eliminations will happen too?

    Lets say G_1 is USD and G_2 and B and C are different currencies. So will the conversion to USD will happen for all?

    Thanks

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