Define Consolidation Settings for Subsidiary

This document explains how to configure the basic information that is necessary for a subsidiary to create consolidation figures for the parent company in M3 Group Consolidation.

Outcome

Basic data such as the subsidiary's ID at the parent company and the currency to use is selected for the subsidiary. (Refer to the Parameters to Set table for a detailed description of available values.)

Continue with the other configuration activities for the subsidiary as described in Enabling M3 Group Consolidation.

The settings are saved in the CSYTAB table.

Before you start

The starting conditions listed in Enabling M3 Group Consolidation are met.

Follow These Steps

  1. Identify the configuration to apply based on the Parameters to Set table.

  2. Start 'Settings – Subsidiary' (GMS010/E).

  3. Enter the requested values. Press Enter to finish.

Parameters to Set

Program ID/Panel Field The field indicates …
(GMS010/E) Subsidiary

… the subsidiary's ID at the parent company. (Mandatory)

All the subsidiary's transactions will show this ID in the accounting dimension selected in 'Settings – Transfer of General Ledger' (GMS015) and 'Settings – Transfer of Budget' (GMS020).

The ID, which must be unique, can consist of up to eight characters.

(GMS010/E) Consolidation currency

… the currency to use for the consolidation. If this differs from the local currency used by the subsidiary, the transactions to consolidate will be converted. (Mandatory)

In most cases, the subsidiary reports the consolidation transactions in its local currency, and the parent company then converts the figures. This means that you must select the same currency for the subsidiary and the parent company in 'Settings – Consolidation (Parent Company)' (GMS090/E). This method is a requirement when each period balance must be converted with the exchange rate valid at the end of that period.

The advantage of having the parent company responsible for the conversion instead of the subsidiary is that it enhances traceability, since the subsidiary figures are displayed in foreign currency in the parent company.

(GMS010/E) Owner share in percent

... the owner share – that is, the share the parent company has in the subsidiary – expressed as a percentage. (Mandatory)

If the subsidiary is not 100% owned by the parent company, you can enter a percentage lower than 100. All balances per account group are consolidated in relation to the owner share. The entire balance of the subsidiary is consolidated and the remaining part is automatically set aside as a provision for the minority interest in the profit.

(GMS010/E) Transfer of general ledger transactions ... whether transactions from the subsidiary's general ledger are included in the consolidation.
(GMS010/E) Transfer of budget ... whether values from the subsidiary's budget are included in the consolidation.
(GMS010/E) Parent company, Division ... the company ID as well as the division with the basic data for the parent company in M3 BE. (Mandatory)
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