Configuring Core

This procedure describes how to do the basic configuration for Financial Consolidation.

  1. Select Modules > Consolidation > Core and click Configure.
  2. The use of segmentation is enabled by default. If enabled, all profit and loss accounts (E and R types) are segmented automatically. If the use of segmentation is required, then select from these options:
    Option Description
    Balance Sheet Account Segmentation Segmentation of balance sheet accounts (A and L types) is enabled by default. If not required, you can disable it.
    Usage of Elimination Items for Segments The use of elimination items to track differences within hierarchical segmentation is enabled by default. If not required, you can disable it.

    See "Use of elimination items for segments".
    Business Object Select a custom business object for the primary segment. For example, Business Unit.

    See "Hierarchy of segments".
    Secondary Segment Optionally, enable a secondary segment and select a custom business object to link with the segment. For example, Regions.

    See "Hierarchy of segments".
    Tertiary Segment Optionally, enable a third segment and select a custom business object to link with the segment. For example, Products.

    See "Hierarchy of segments".
    Note: If you disable the use of segmentation, you cannot run consolidation processes with segment elimination.
  3. The use of schedules is enabled by default. If schedules are required, then specify the ID of an equity schedule.
    Note: If you disable this option, you cannot run the carry forward process, opening balances are not available, and periodic changes are not possible.
  4. Specify, as percentages, these thresholds:
    • Consolidation at Equity
    • Proportional Consolidation

    The choice of the consolidation method depends on the effective control and threshold values. The default value for the consolidation at equity is 20% and for the proportional consolidation, it is 50%. These settings are GAAP-dependent and can be changed.

  5. If the equity journals affect the profit and loss result of the previous period, select a group account as the carry forward account to which to post the opening balances of the equity journals. This account is used for the carry forward of entity and group journals.
  6. Click Next.
  7. Specify this information:
    Goodwill
    Select the asset group account for system generated goodwill postings.
    Badwill
    Select the asset group account for system generated negative goodwill postings.
    Goodwill Amortization
    Select the profit and loss group account for system generated goodwill amortization.
    Revaluation Reserve
    Select the balance sheet group account for revaluation reserve.
    Participation
    Select the profit and loss group account for system generated deferred tax credits.
    Default Schedule Detail
    Specify the ID of the schedule detail for participations.
    Dividend Payout Detail
    Specify the ID of the schedule detail for recording dividends payable for the period.
    Dividend Minority Detail
    Specify the ID of the schedule detail for recording minority interest in dividends payable for the period.
  8. Click Save.
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