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author's profile photo Rekha Reddy
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Rekha Reddy

OWNERSHIP CHANGE AND RETAINED EARNINGS

Posted on Nov 29, 2017 at 05:22 PM 636 Views Last edit Nov 29, 2017 at 11:28 PM 3 rev.

Hello,

BPC 10.1 NW SP10 ON HANA. Consolidation YTD model. Integration rule enabled.

BW 7.4 SP15.

we have change in ownership data in period 3. moved all entities from SG1 to SG2 in period 3. After this change balanceheet is out of balance bcos of retained earnings in period 03.I think its taking periodic value of net income instead of YTD value for SG2.

In our logic after running consolidation we copy CYNI to retained earnings acct.

below is screenshot of data. is there a workaround/fix to get YTD values for net income for the new group?

scope.png

Thanks.

scope.png (16.5 kB)
scope.png (16.5 kB)
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  • author's profile photo Hendry Kosasi
    Hendry Kosasi
    Posted on Nov 30, 2017 at 11:01 AM
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    Hi Rekha,

    Change of ownership does not mean moving the whole asset to new company. What you do:

    1. Take out the capital stock off the subsidiaries (in company level)
    2. Take out investment off the holding (in company level)
    3. Change the ownership to 0% - therefore it won't consolidate to the group

    I might have oversimplified step 1 and 2 - there are A LOT of journals that need to happen in the single company level. This is not something you should do in the consolidated level

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