Third-party line amount

Intercompany Eliminations Journals Only

If a unit is less than 100% owned, you can calculate the minority interest of the third party and remove it from the Match or Match With line amounts to a third-party line.

A third-party line is identified by bold, italic text and can display in the Within Requested Tolerance category, the Outside of Requested Tolerance category, and/or the Intercompany Activity With Equity/Investment category. The corresponding bold, italic amounts display in the Elim. Amt column and the Sums column.

The administrator can:

• Assign a different third-party line for debits than for credits (or assigned the same line for both).
• Set up the application to not calculate third-party amounts. In this case, the third-party amount remains in the Match or Match With lines.

A third-party amount is calculated as follows (assume the natural sign of the Match line is a debit and the natural sign of the Match With line is a credit):

Third-Party Debit Line Amount = (Sum of translated debit line amounts) * (consolidation % of specifying unit) - (lesser of the consolidation % of the specifying unit and affiliated unit)

Third-Party Credit Line Amount = (Sum of translated credit line amounts) * (consolidation % of specifying unit) - (lesser of the consolidation % of the specifying unit and affiliated unit)

If the same line is used for third-party eliminations as for remainders, the net amount posted to that line during a consolidation is the sum of all third-party amounts plus all remainders for any given elimination unit.