A group normally does not have to fully finance capital investments made by companies in which it has an interest of less than 100%. The percentage of financing is usually the same as the percentage of its interest in the other company. For this reason, groups are interested in seeing the capital investments in their group-wide investment programs from the viewpoint of consolidation, meaning that the values are shown in relation to the percentage of equity holdings in affiliated companies.

You can enter a consolidation group in reports on the values of your investment program. The system then determines the values of the investment program positions based on the equity holding percentages in the consolidation group.

A consolidation group consists of consolidation units. For the purposes of IM reports, a consolidation unit has to be a company. The system determines the company that is involved in a given investment using the organizational assignments in the master data of the measure, appropriation request and investment program position.

The system determines the values of measures or appropriation requests belonging to a program position. It then weights these values using the group share of the given company. In order to use this function, you have to enter the group shares of the consolidation group in IM Customizing (with a valid-from date). The group share is expressed as a percentage rate. This percentage rate expresses the proportion of ownership of the consolidation group’s parent company in the subsidiary.

There is a standard report in the Information System for investment programs (summarization database) under Budget Values. The report provides information based on the consolidation group entered. The system determines the values of the measures, appropriation requests and program positions of those companies that belong to this consolidation group. At the same time, it weights these values according to the group shares that have been entered in Customizing.

The graphic below shows an example of the logic the system uses in this report on a consolidation group:

The investment program position for construction of engines belongs to company 1021 (determined on the basis of the company code organizational assignment in the master record). This program position has a budget of 1000. Company 1000 (parent company of consolidation group 01) has a group share in company 1021 of 15%. As a result, the consolidated budget, as displayed in the report, is shown as only 150 (15% of 1000).

It is important to note that the group share is always seen in relation to the parent company of the consolidation group. In this example, company 1000 holds 50% of companies 1010 and 1011. The logical consequence of this is that company 1010 holds 100% of company 1011. You have to ensure the consistency of the group shares yourself when you enter them. The system does not carry out a consistency check here.

In order to use this function, you have to enter the group shares of the companies in IM Customizing manually (under Information System).