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Former Member
Dec 01, 2009 at 10:49 AM

Total transfer of equity consolidated unit using organizational change

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Hi,

We have a scenario where we are doing total transfer of an equity consolidated unit (100% owned) from one company(old parent) to another (new parent)

The new parent is one level above the old parent in the hierarchy.

We've used organizational change logic and have set the divestiture dates/flag in the sender consolidation group and accordingly first consolidation dates/flag/OC number in the receiver consolidation group.

The investment AFD is submitted with "total transfer" with OC number.

There are multiple scopes of reported data for equity method in our configuration.

Each scope(equity pickup) is inturn created by reclassifying several equity accounts to a single BCS only item(the scope item)

When we run COI, the system posts one total divestiture document at the old conso group (where old parent is situtated) and posts a first consolidation, total divestiture, total transfer documents at the new conso group level (which is one level above the sender conso group)

The total divestiture document at upper level is reversing the divestiture document posted at old parent.

The first consolidation document jas only statistical items posted in it.

The real document to check is the "Totals transfer document" which actually reads the investment (at old parent and new parent) , the equity holdings adjustment data(the scope items) and adjusts the investment in subs at new parent with offset going to divestiture account but of double the value than the expected scope vlaue.

Issues faced:

Q1. Consolidation group change tasks (at PL02, 12, 22) are not posting any documents. Is there an issue? Since I am using these tasks for the first time and dont know if this is possible.

Q2. The total transfer document is reading the equity holdings data as double the expected value( for each of the scopes of equity method). What could be the possible reason? How to fix this?

Q3. I would appreciate if someone can clarify what kind of postings the system makes as part of divestiture/transfer in case of equity consolidated unit transfer.

Please help!

Thanks,

AJ