Additional Financial Data 

Definition

Information that is required in addition to the data in the totals database (that is, in addition to balance sheet, income statement, and similar data).

Additional financial data is required:

·         For performing historical currency translation

·         For the consolidation of investments

·         For the elimination of interunit profit/loss in transferred inventory (IPI)

With regards to the elimination of interunit profit/loss in inventory, the additional financial data contains the information on group-internal sales of goods and services.

Use

IPI uses the additional financial data to determine the asset’s book value and group cost of goods manufactured. The basis for this calculation is standardized financial data, which takes into account the incidental acquisition costs requiring capitalization.

Structure

The following additional financial data is needed for the elimination of IU profit/loss in inventory:

·         Inventory Data

·         Supplier Data

Inventory Data

The inventory data is comprised of

·         Versions

·         Fiscal year and period

·         Consolidation unit

·         Partner unit

·         Product group

·         Balance sheet item

·         Book value in the reporting period

·         Valuation allowances allowing losses

These include non-permanent valuation allowances (for example, flat-rate allowances for spare parts).

·         Valuation allowances disallowing losses

These are permanent valuation allowances that may not change a gross interunit profit into an interunit loss (gross IU profit = book value in reporting period - group cost of goods manufactured). This procedure complies with the principles of prudence and lowest value. In this case, the amount to be eliminated cannot be negative.

·         Inventory quantity

·         Incidental acquisition costs

From the group’s point of view, Incidental acquisition costs are capitalized and increase or decrease the group cost of goods manufactured (COGM). From the units’ point of view, these incidental costs would be immediately charged off as an expense.

·         Percentage rate of incidental costs (if applicable)

Supplier Data

The supplier data is comprised of

·         Versions

·         Effective year and period

·         Consolidation unit

·         Partner unit

·         Product group

·         Profit percentage (either as a markup or a gross margin)

·         Rate of distribution costs as percentage of sales

·         Rate of COGM per unit of measure or as percentage of sales

The supplier data is valid for all periods that follow the effective period – thus, there is no need to reload the data as long as the data remains unchanged. This minimizes the effort involving data collection.

Profit Percentage Variants

Profit percentage rate	20
Sale amount for the supplier	300

·         Profit if percentage is a markup

300 * 20/120 = 50

·         Profit if percentage is a gross margin

300 * 20/100 = 60

See also

·        Manual Data Entry of Additional Financial Data

·        Validation of Additional Financial Data