There is typically an entry in ECC (or whatever source general ledger is) for divestiture. The entry is to write off the investment balance along with any proceed (cash, AR, etc.) and the remainder to gain/loss.
For purchase method investees divested, the earnings accumulated in statistical accounts are posted to the gain/loss accounts according to COI configuration. The net of the general ledger and COI gains/losses is the true gain/loss on divestiture.
Divestiture requires master data for cons group to indicate the period/year of divestiture for the investee. Here there is the option to divest at the beginning of the period. If not selected, the default is divestiture at the end of the period. For mi-period divestitures, the only solution is to manually adjust for the differences.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.