Consolidation

Advanced Consolidation Methods

-Holding -Subsidiary -Proportional joint ventures, consolidation percentage = ownership percentage -Equity holding company has sig. power, ownership = 0% -Not Consolidated ownership = 0%-20% -Inactive -Discontinued

Consolidation

-aggregating data from child to parent entities -translating child currency to the parent currency using exchange rates

Historical Accounts

-calculate using override rate -also created as shared accounts

Movement Hierarchy

-captures the movement details of an account -set to never share Roll forwards -Opening Cash -Cash flow reporting >>Opening Cash >>>Net Cash Ops >>>Net Cash Investing >>>Net Cash Financing >>Closing Cash >>Change in Cash Movements Dimension Hierarchy FCCS_Movements FCCS_Cash Flow FCCS_CashChange

Calculation Status

-indicates whether data needs to be translated/consolidated -found in forms/ grids OK No Data Impacted Needs translation System Change

Exchange Rate Types

1. Direct exchange rates -untranslated amount multiplied to calculate the translated amount i.e. GBP * 2 = USD 2. Indirect exchange rate -untranslated amount divided by rate to calculate the translated amount i.e. US / 0.5 = GBP 3. Cross Rates -translation calculation between two currencies > triangulation

Which three scenarios result in foreign currency translation during the default consolidation process? A base entity has a different default currency than its parent. A shared entity has a different default currency than its parent. A parent entity has the same default currency as its parent. A base entity has the same default currency as its parent. A parent entity has a different default currency than its parent.

A base entity has a different default currency than its parent. A shared entity has a different default currency than its parent. A parent entity has a different default currency than its parent.

Triangulation Currency

Currency dimension - triangulation currency i.e. you want to translate CAD to Euro. -CAD and USD have a defined rate, and USD and Euro have a defined rate -Triangulate with USD Go to CAD in currency dimensions editor -add USD_Reporting as a triangulation currency

How to launch consolidation process

Data form > action > consolidation Or, business rules > consolidation -Fill in entity, period, scenario, year

Which two calculation statuses would require a user to run consolidation? Impacted Ok Approved System Changed

Impacted System Changed

In order to execute translation, which option needs to be enabled during application creation? Journal Translation Exchange Rate Multi-Currency Multi-GAAP

Multi-Currency

Which statement is true if the Intercompany Data feature is not enabled when the FCC business process is created? An extra custom dimension is available. Data can be stored by intercompany partner but no eliminations will occur. The ICP dimension is omitted. The FCCS_No Intercompany member of the ICP dimension is user for all data.

The ICP dimension is omitted.

Consolidation

Translation, Consolidation, Aggregation Entity input calculates > Translates to parent > Consolidate proportions to parent > Intercompany data eliminated and stored in an elimination member > Summation of proportion and elimination is stored in Contribution member > System aggregates all children contributions to the parent > Stores it in Entity consolidation

Recomputing ownership

Update ownership % control and consolidation method for each parent/child entity