Example of an ownership structure when subgroups are enabled

This diagram shows an example of an ownership structure when subgroups are enabled:

Ownership structure with dummy entities diagram

The parent entities own or control dummy entities that represent subgroups. The diagram shows these relationships between entities:

  • RU0001 owns 80% of RU0002, 100% of GR0002 subgroup dummy entity, 100% of GR0004 subgroup dummy entity, and 100% of RU9999.
  • RU0003 owns 75% of RU0004 and 55% of GR0003 subgroup dummy entity.
  • RU0007 owns 100% of RU0008.
  • RU0005 owns 100% of RU0006.

During consolidation, the Subgroup Copy and Subgroup Copy Transaction Data processes transfer the results of a group into an assigned dummy entity that is part of a higher-level group. Because the order of groups in which you run consolidation is important, you must start with the lowest-level group for the top group and move upwards according to the structure. In the example from the diagram, consolidation must be run in this order:

  1. GR0004: The results are transferred to GR0004 subgroup dummy entity, which belongs to GR0001.
  2. GR0003: The results are transferred to GR0003 subgroup dummy entity, which belongs to GR0002.
  3. GR0002: The results are transferred to GR0002 subgroup dummy entity, which belongs to GR0001.
  4. GR0001: Because group results of dummy entities GR0002 and GR0004 are already transferred, you can run consolidation for GR0001.
Note: Subgroups work correctly if an entity exists only once in the group or subgroup structure. For example, if an entity is part of group GR0002 in 20% and part of group GR0001 in 20%, and GR0002 is part of GR0001, the process does not correctly represent the data. During the transfer of the group data into a dummy entity, the group entity is interchanged with that dummy entity and group intercompanies become External in the dummy entity. In GR0001, the dummy entity is represented in 20%. The 20% part that belongs to GR0002 represents the intercompany data that was originally represented in the Group dimension and now is represented as External in GR0001. In fact, part of the dummy entity values comes from group GR0002 that is represented as External and another part comes from group GR0001.