Calculating amortization of goodwill and hidden reserves

This procedure describes how to calculate the linear amortization of goodwill and hidden reserves.

  1. Ensure you have defined the amortization account and contra account.

    To define the account and contra account, select Business Modeling > Business Objects > Financial > Group Accounts and in the Reserve column, select the check box for the appropriate account.

  2. Select Parameterization > Group Parameterization > Ownership Management > Entity Ownership and document the purchase information.
  3. Click the icon in the row with the account for which to calculate amortization.
  4. Specify this information:
    Amortization Type
    Select Linear.
    Start Period
    Select the start period of amortization.
    End Period
    Select the end period of amortization.
    Amortization
    This field is populated with the account value.
    Rate per Period
    This field displays the value of the account, divided by the number of periods of amortization.
    Account
    Select the amortization account.
    Contra-Account
    Select the amortization contra account.
    Schedule Detail
    If required, select schedule detail for the selected account and contra account.
    Segment 1
    If required, select the primary segment for the selected account and contra account.
    Segment 2
    If required, select the secondary segment for the selected account and contra account.
    Segment 3
    If required, select the tertiary segment for the selected account and contra account.
  5. Click OK.