DE03

Development Standards
Document (Consolidation
Engine)

This document includes all relevant Development Standards which are the
baseline for the developments on the new consolidation engine; this includes
naming and coding conventions.
Format: MS Word

DE04

Development Process
Documentation
(Consolidation Engine)

Description and documentation of Development Process in a comprehensive

model.
Format: MS Word or PowerPoint

Balance Carry Forward

The classic first step is to carry forward the prior year balance sheet
closing balances into the current year opening balances
Import Actuals
Then the current months financial data from the local subsidiaries is
imported
into planning and consolidation
_

Data Validation
A data validation to perform integrity checks such as assets = liabilities
and
owners equity can be run at this point as well as later in the process
_

Reclassifications
Automated adjustments can be run at this point in the process as well as
later
_

Journals
Manual adjusting entries to meet the group standards can be entered at
this
point in the process as well as later
_

Ownership Data
The ownership methods and percentages are entered into the Ownership
Model
_

Currency Translation
Local currency is translated into other reporting currencies if necessary
_

Methods

These are different types of consolidation methods such as the 86Purchase

Method, 70-Proportional Method, 90-Holding Method, and 30-Equity
Method
Method-based multipliers
This table contains rules that are used to select entity source values and
apply
percentages to those values to ultimately book new data records
_

This ownership data will be used to book elimination entries at each

group level.
The example in Figure 7.12 is relatively straightforward. Planning
and consolidation
can certainly handle more complex ownership structures with
hundreds of
entities as well as entities with multiple parents.
The Update ownership upwards checkbox can be used to populate
the ownership
data into the G_CG1 group because its further up in the hierarchy.
Selecting
Show empty will display IDs with no PCON and POWN, for example.
By saving this data to the Ownership model, you can record the
ownership structure
and method assignments into the database. You can easily copy this
data
from one month into several months at once via the Ownership
Manager Copy To
button at the top of the screen. Also, the Calculate button can be
used to generate
proposed methods and PCON values
Auto Reverse
This option allows you to automatically reverse the JE in the next
time period
Multiple Headers tab
This option enables you to post multiple periods at once. For
example, a journal
_

for three months will actually generate three new journal IDs, and
the first
ID will also be identified as the group ID.
_ Multiple Values
This option enables you to post different values per month, for
example.
_ Closing
This the reason code for the entry.
_ Timing
This is used to document a date for cash flow purposes for example
In the first row, the entire balance sheet (1) closing balance is carried forward
into the same accounts using the opening balance flow and a unique Destination
Audit ID of AJ_BCF. Using a unique audit ID such as AJ_BCF allows for

easy identification of the values carried forward.

_ In the second row, the current year retaining earnings ( 25712000)
that is carried
forward in row 1 is negated.
_ In the third row, the current year retained earnings is written into
prior year
retained earnings (25714000)
The Data Manager package passes the dimension members to the
Script Logic.
This delivered Data Manager package runs the Copy_Opening.LGF
balance Script
Logic file. When the user executes the package, he is prompted for
members of
the Company, C_Category, and RptCurrency.
If the 2011.12 values are being carried forward to 2012.01, for
example, then
2012.01 will be selected as the time member.
There are a fair number of components, so lets take a look at a
graphical view. In
Figure 7.20, you can see how the BCF components are used as
described here: