Question

Group Consolidation - Code part function Consolidation

  • 26 January 2022
  • 7 replies
  • 694 views
caroline.legault
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Hi all, 

I am working in setting up the Group Consolidation basic data. 

From the document, I understand that we have to define a code part with the Code Part Function ‘Consolidation’ un the master company and put the list of reporting companies in the code part values. I have done it but and I don’t understand how the code part is used afterwards. 

When I transfer balances from reporting companies and run the conso process, this code part is empty in the consolidated balances. 

Did I miss a mapping between the reporting entities and this code part? 

Thank you very much for your help. 

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7 replies

Ieva Rituma
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The code part function “Consolidation” is used for Consolidated Accounts not in Group Consolidation module. For Group Consolidation, you should use the Additional Code part K to store intercompany values for the intercompany eliminations to work.

 

 

IRituma
caroline.legault
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Hi, 

Ahhh!! It makes sense now! Thank you so much for your very quick response. 

And it raises a second question. 

I have several consolidation levels in my organisation.

So I have a group of 40 companies and in each of them, I have defined a code part with the code part function ‘INTERCO’ in which we have listed all 40 companies and which was mapped with the Counterpart 1 code part of the master company.  

But when if I want to consolidate the lower level of conso (assume 3 entities together out of the 40 representing a conso node), how can I set up the system so that the interco elimination of this sub group will only eliminate intercompany transactions between these 3 entities and not with the 37 other?

Thanks again for your precious help. 

Cheers,  

Ieva Rituma
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Hi,

 

Just want to make sure - you are using Group Consolidation and not Consolidated Accounts, correct? 

IFS ensures eliminations are done at all levels by creating the consolidation structure. Then, we can analyse at each level of the structure and see eliminations taking place only relevant for that level. So for as long as you have the structure setup with the correct levels, you’ll see the eliminations taking place.

Do you have support from an IFS or partner consultant on the group consolidation setup? I do suggest to reach out to someone - there might be quite a few additional settings that are relevant to your business but without a detailed discussion might get missed. 

IRituma
caroline.legault
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Hi, 

 

Yes, I am setting up Group Consolidation. 

And I am indeed looking for some support. I did reach out to our local contact in IFS and am waiting for him to get back to me. 

But if you know of a consultant in IFS (anywhere in the world) that knows these functionalities particularly well, I would love to have his/her name ;) . 

Thanks again for all you help. 

Cheers, 

Ieva Rituma
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I’ve also reached out to people internally so hopefully you should hear back soon! 

 

All the best with this.

IRituma
C
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As IRituma said, your structure dictates which entities get consolidated with each other at what level.

Heavily redacted, but here is an example of a consolidation structure.  The items marked with

are the ‘consolidation points’, the items that start with numbers are the underlying entities in IFS, then we also have ‘entities’ in group consolidaiton to hold adjustments, but they aren’t truly necessary.

M
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let me know if you need any support on Group Consolidation :)

 

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