Calculating amortization of goodwill and hidden reserves

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

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.
Select Parameterization > Group Parameterization > Legal Ownership > Legal Entity Ownership and document the purchase information.
Click the look-up icon in the row with the account for which to calculate amortization.
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.
Click OK.