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We are testing Group Consolidation in Apps 10 and have a couple of subsidiaries that are not 100% owned. One is 90% owned and the other is 50% owned, and both flagged with a Consolidation Method of Equity Majority. When running the consolidation, minority interest is being calculated and posted as per the posting control, but the calculations are not as expected (both are MI profit calculations are lower than they should be).

Are there any other factors we need to take into account when setting up Group Consolidation that influence the minority interest calculation?

Any help would be great.

Thanks

Dave 

Hi, 

 

For the subsidiaries where you have less than 100% ownership, below are the configurations you normally need to check. 

Window: Consolidation structure 

Items to check:

  1. Ownership percentage ( e.g. 90%, 50% ) 
  2. Consolidation method - Equity majority.  

If still if you find the NCI calculation is not correct, you can validate it by multiplying the ‘NCI %’ (eg. if the ownership is 90% then the NCI % would be 10%) by the profit for the period (normally the value of GCP1 posting type , which will be captured when transferring the balances from the individual entities to consolidating company) .

Hope this may help…!

 

Thanks,

Thushan Wijayawickrama  

 

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