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COI Question (Consolidation on Investment)

Nov 29, 2017 at 05:23 AM

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Former Member

Hello Experts.

I have one question regarding Consolidation on Investment. I have C1000 and C6000, They are in G_CG1. C1000 Owns 65% of C6000 and I am using Purchasing Method. So in the ownership Manager I set as follow:

For data source AJCOI1: (elimination of Investement in sub)

For AJCOI2: (Elimination of Investemen received (partial))

For AJCOI3: (Elimination of Minority Interest)

My issue is that in C1000 with I_C6000 gets eliminated in AJCOI1, Elimination of C6000 is eliminated with I_C1000 in AJCOI2. And the minority interest is booked in AJCOI3 in respective account C6000 with I_C1000. So far so good; but the amounts I have in I_NONE are eliminated as well.

I wonder why is it.

Any ideas. ???

Thanks for the post.

Best Regards.

ajcoi1.png (13.6 kB)
ajcoi2.png (12.0 kB)
ajcoi3.png (12.3 kB)
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1 Answer

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Former Member Dec 01, 2017 at 04:09 AM
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Hi Sebastian,

but the amounts I have in I_NONE are eliminated as well.

check your method multiplier setup. if the interco is setup as 99, that will eliminate all including I_NONE. You ought to specify the interco method only to those you wish to eliminate.

Hope this helps

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Former Member

Thank you very much for the answer Hendry. I had the elimination method as 90 - Holding, I changed it to test and set 86 - Purchase.

Even with this method I get eliminations in I_NONE.

How do I need to set up the ownership to prevent I_NONE not to be eliminated?

Regards.

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What Hendry meant is that you need to check the inter co method in the multiplier rule, if 99 it will eliminate whatever IC including I_NONE.

Post the RULE60 multiplier.

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Former Member

Wow, you are totally Right, I have 99 in the INTERCO Method. How do I set up to prevent to elim the I_NONE. I tried to set a new INTCO Method with ID 98, then change it in the rule 60, but no elim was performed.

rule-60.png (9.8 kB)
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You need to replace 99 by the intco methods you wish to eliminate e.g.: 98 and 98, or 98 and 50... you can have more than one line and you can also use commas e.g.: entity method 98 and intco method 50,98...

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Former Member

Thank you very mucho for your answer Luca, I already tried that but no elimination was performed maybe I didn't set it up correctly, I guess I need to open another post to ask that, right? I'll do it shortly. How do I accept that last comment as Correct answer?

Thanks again.

Best regards.

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Without full detail on rules, audit trail, entity and group it's complicated to give you any idea.

Why last comment? Hendry gave you the answer :D

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Former Member
Lucas Costa

You gave me the answer to remove INTCO Method 99, I did, instead 99 I set another INTCO method and it worked, i was trying to set your answer as ACCEPTED but it was a comment, if you do the same comment as response to the post i will be able to set your anwer as accepted.

regards.

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Former Member
Former Member

Hi Sebastian,

Usually in purchase method, capital stock should be eliminated fully regardless the ownership % from the holding. The minority portion of capital (in your case 35%) then posted to minority interest using the "minority account" in the elimination rules.

I'd suggest you post your goal in general first because it seems your elimination rules for investment seems off because you are not using the minority account in the elim rule AJCOI2

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Former Member
Former Member

Thank you very much for your observation, I did that, the issue is that I had balance in INTCO Dimension member I_NONE, as far as I konw that means that an investment with a third party was registered. For that I didn´t want to elim that balance.

I had set as INTCO method 99 that is why the I_NONE was also eliminated, i tried with other INTCO Method as sugested by Luca and it work.

I really appreciate your post, thank again.

Best regards.

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