Method-based Multipliers and Consolidation Methods

You can set up global business rules at the environment level. Once the headers, methods, and rules are defined, they can be used in all related business rule tables within an environment.

Features

You populate the following two global definitions:

Method-based multipliers
Consolidation methods

Global Definitions

You can add a new Global Definition in Planning and Consolidation Administration by:

Selecting the type of Global Definition (Method or Method-based Multiplier)
Entering the required fields
Saving or validating the Method or Method-based Multiplier

Once defined, the rule can be used in any model in the environment.

Consolidation methods

The Consolidation Method list describes the accounting methods available for consolidating each entity.

Field Name	Description
Method code	The unique method code. The value must be an integer between 1 and 98 `99` - a reserved value and means any method, consequently it cannot be assigned to any entity
Method name	The name of this method. Example Leaving, Equity, Proportional, Global, Holding.
Method type	The Entity method type. Available types: New, Holding, Global, Proportionate, Equity, Leaving (During the Year), Disposed at last year-end

Field Name

Description

Method code

The unique method code. The value must be an integer between 1 and 98
99 - a reserved value and means any method, consequently it cannot be assigned to any entity

Method name

The name of this method.

Example

Leaving, Equity, Proportional, Global, Holding.

Method type

The Entity method type.

Available types: New, Holding, Global, Proportionate, Equity, Leaving (During the Year), Disposed at last year-end

Method-based multipliers

Method-based Multipliers control how the amounts or the destination accounts should be calculated.

You define a name (ID), a description, and a type as noted in the following table. The consolidation method defined in the Type field limits the use of the rule to the specified type of consolidation method.

The calculation of consolidated data is controlled by the multiplier being used, the consolidation method assigned to the current entity, and its Intercompany partner, if applicable.

The following fields can be defined:

Field Name	Description
ID	The identifier of the rule. Example RULE01
Description	A description of the rule. Example Equity, 100% Minority part, Dividends, Stock Holder Equities, Intercompany elimination
Type	The consolidation method using the method-based multiplier can be restricted to: Proportional Equity Leaving Disposed New or blank
Entity Method	A valid entity method, as defined in the Consolidation Methods list, or a list of entity methods separated by commas to which the multiplier applies.
IntCo Method	A valid entity method, as defined in the Consolidation Methods list, a list of entity methods separated by commas, or 99 for all methods. For the Intercompany dimension, this is the entity value to which the multiplier applies.
ALL Formula	An expression that represents the percentage (or formula) to apply to the Destination All account property from the Eliminations and Adjustments business rule. The value can be an arithmetic expression combining any defined percentage in the account dimension of the ownership model. All percentages where the property IS_INPUT is equal to Y can be used. Note the following guidelines: The members must be enclosed in square brackets. Example `[POWN], [PCTRL], [POWN]` Add the prefix P to the percentage to use the Prior value. Example `[PPOWN], [PPVOTE]` Add the prefix I_ to the percentage to add the Intercompany value. Example `[I_POWN]` The syntax of the prior value can be combined with the syntax of the INTCO value. Example `[I_PPOWN]` Note The calculation of POWN by both direct share method and group share method is supported. We also support the calculation of PCTRL (calculation of ultimate control %) in the business rule tables. There are two options for obtaining results: system calculations and manual updates. There is also an option to change from system to manual while calculating. This gives you the means to manage security by protecting system calculations that cannot be overwritten by manual updates. To support this, we also provide the O_ACCT dimension in EnvironmentShell by adding a set of members that store only system calculations. The members are POWN_SYS, PCTRL_SYS, and METHOD_SYS.
Group formula	An expression that represents the percentage (or formula) to apply to the Destination Group account from the Eliminations and Adjustments business rule. The value can be an arithmetic expression combining any defined percentage as defined by the Account dimension of the Ownership model. All percentages where the property IS_INPUT is equal to Y can be used. The percentage must be enclosed in square brackets. See the All formula field above for further details.
Minority formula	An expression that represents the percentage (or formula) to apply to the Destination Minority account from the Eliminations and Adjustments business rule. An arithmetic expression combining any defined percentage as defined by the Account dimension of the Ownership model. All percentages where the property IS_INPUT is equal to Y can be used. The percentage must be enclosed in square brackets. See the All formula field above for further details.
Remark	Text for this rule.