Legal Consolidation run for Elimination of Equity/Investment

[Former Member]

Dear All,

We are implementing BPC 10.1 and i need help on understanding the first consolidation run for the organization and Cut over strategy

We are going live in around December.

The requirement is to have historical consolidation as well as standalone figures of last year for comparison to this year so my query is:

1.Whether we need to run first consolidation for calculation of goodwill as goodwill is already calculated in previous years in excel?

2.Will standalone/Consolidated balances of last year need to be uploaded?

3.And if yes to Q.2 above so those balances have to be carried forward to 1.4.2016.

4.Whether we need to upload the TB of say NOV 16?

5.How Subsequent consolidation would be calculated from April to November?

Thanks in advance for your help.

Regards,

VM

[former_member225135]

Hi Vijay,

Answer to your queries:

1. Whether we need to run first consolidation for calculation of goodwill as goodwill is already calculated in previous years in excel? --- Yes, but make sure that the historical values give goodwill which was there in last year. I would advise you to upload historical values in preceding march and do carry forward to bring historical values in your testing/UAT period

2.Will standalone/Consolidated balances of last year need to be uploaded?---- Yes if you want comparatives

3.And if yes to Q.2 above so those balances have to be carried forward to 1.4.2016.---- Not to 1.4.2016 but to the period of testing

4.Whether we need to upload the TB of say NOV 16? --- YTD Nov'16

5.How Subsequent consolidation would be calculated from April to November? --- Depend on your business requirement.

Regards,

Rahul

[Former Member]

Hi Rahul,

Thanks a lot for your reply.

As per my understanding of your suggestions we need to run goodwill calculation and match goodwill which was calculated in earlier years but the goodwill might have been calculated say 10 years before and it is being carried forward year on year basis in excel but in ECC system the standalone would have data of investment in subsidiaries in investors books and equity in investee's books.

Period of testing you mean to say when it is going live.

I mean to say whether consolidated financials needs to be uploaded and if yes the goodwill and MI balances would also be there.

I need to know the strategy if we are going live in December as to how balances would be uploaded if financial year is from April -March.

Thanks in advance for your suggestions.

Thanks and Regards,

VM

[Grégoire2Ombres]

Hello,

There are many questions in your question!

My usual approach is the following:

If my first "live" consolidation is 2016.12, my "historical" consolidation is 2015.12.

2015.12 will be the basis for the opening balance for 2016.12. So this closing period is enough.

But if I need further historical consolidations for comparison purposes, I can also consolidate 2016.01-2016.11. Keep in mind that in BPC (in YTD models), periods are independent, and the opening balances are always consolidated (no carry forward).

Hope this helps.

Grégoire

[Former Member]

Hi Gregoire,

Thanks for your reply.

The financial year is April-March so do i need to upload standalone TB of all the cos for mar 2016.

Also do i need to upload consolidated financials as on 1.4.2016 including goodwill which was calculated in excel whenever there was acquisition in prior years.

For current year we need to consolidate as you suggested as there is comparison required on month on month basis.

Appreciate your suggestions.

Thanks and Regards,

VM