How to avoid minority interest dividend calculation

[Former Member]

Hi,

I have a requirement to avoid dividend postings to minority interest share portion. We want to post 100% of the dividends to the group company. However the current group shareholding is only 75% hence the system is posting 25% of the dividends to the minority share group. The consolidation of investment method used is pooling of interest method.

Please see the attachment for the screen shot, click on this link and click on the download file button to download the screen shot :- http://wikisend.com/download/289316/Minority%20share%20dividends.JPG

Edited by: FICO Consultant on May 5, 2011 2:41 PM

Edited by: FICO Consultant on May 5, 2011 2:42 PM

[former_member209721]

Actually the Minority interests are calculated during the Distribution of dividends COI activity. So, if you want to avoid that, I would just delete the config relating this activity in the workbench (location of values)

[Former Member]

Hi,

Is that good enough to apportion all 100% of the dividend to the group and have it eliminated (i already have the elimination config in place)?

[former_member209721]

If you do that, the dividends distributed within the group will be eliminated (during IC elim), and the remaining portion will not be reclassified to the MI, that is to say stay in the group. Perform the test, you ll see

[former_member209721]

But this remaining portion will not be elinminated, because not distributed within the group...

[Former Member]

Hi,

I cannot delete the distribution of dividends in the location of values because the delete button is not enabled for me. I tried to clear the FS item allocated and did the COI but the system still doing the distribution of dividends somehow. Dont know how. Is this the correct place to deactivate this activity?

I went to the activities screen where i can set the default sequences of the CI activities. But i cannot remove the distribution of dividends activity there too.

Here is the screen shot :-

http://wikisend.com/download/520076/cannot%20delete.JPG

[former_member209721]

The default sequence is something different.

But I am just thinking about another element that you might adjust to cancel the distribution of dividends : the 'Application' selected in the document type you use for the IC eliminations. Switch the 'Investment income' application to 'Other'.

[former_member209721]

This also means that after having changed the doc type custo, you need to re-run the Dividends IC eliminations and the COI

[Former Member]

Hi,

I have not tried your latest suggestion yet but i noticed the CI activity 18 is responsible for the distribution of dividends and there is a record supplied in AFD with a CI activity of 18. So i am thinking of removing this record so that it wont even trigger the distribution of dividends CI activity 18.

How does this sound to you?

[former_member209721]

If the distribution of dividends is read from the AFD, I agree, you need to delete this line. If this is not enough,you can investigate my second suggestion.

[Former Member]

Yeah sure, i will do that and let you know of the outcome.