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Function documentationUltimate Ownership Calculation using the Direct Share Method Locate this document in the navigation structure

 

This function provides the legal requirement of calculating the ownership of an entity based on actual control of that entity.

The system proposes a method for performing a consolidation based on the ultimate group ownership or direct control percentage.

Prerequisites

  • The Ownership application that holds the ownership details must have the following dimensions:

    • Account (A)

    • Category (C)

    • Group (G) or Currency (R)

    • Time (T)

    • Entity (E)

    • Intercompany (I)

    Note Note

    There are two scenarios for setting up currency and group dimension. The first is when the Currency and Group members are all included in one dimension with the type R. The second is when no currency dimension exists in the ownership cube. It is replaced by the groups dimension with the type G.

    The group dimension is designed to hold consolidation group members. Therefore, although mixing group and currency member in one dimension is supported, we recommended that you use separate group and currency dimensions. The benefit of having separate group dimension and currency dimension is that you can set multiple group currencies for a group.

    End of the note.

  • The Account dimension must contain the following:

    • A member named POWN that stores the percent of ownership or control if it is applied

    • A member named POWND that stores the percent of ownership or control calculated with the direct share method

    • A member named METHOD that stores the consolidation method

    • A member named PCON that stores the percent of consolidation

    Remember to maintain the other set of O_ACCT members, which is POWN_SYS, POWND_SYS, METHOD_SYS, PCON_SYS. These members are system posting members, whereby all the posting by ownership calculation programs come automatically to these members. However, manual input from DHE should come to the manual updating members POWN, POWND, METHOD, PCON, to control the track of system posting and manual overwrites.

    Maintain also the member security access for both sets to achieve the controls.

  • The Currency or Group dimension must contain a member representing None group values, such as LC or NON_group, and a member for each group for which the ultimate ownership percentage must be calculated, such as GROUP1, GROUP2, and GROUP3.

  • The Intercompany dimension must contain a member representing None intercompany values. In the system. I_NONE is a keyword to represent the non-intercompany value. In addition, it has to have a property named ENTITY containing the ID of the corresponding entity associated to each intercompany member.

    In APSHELL, there is an account dimension for ownership application, which is O_ACCT. This contains the necessary members that need to be set up for ownership calculation and DHE function for consolidation, and should be used for building an ownership application. Do not change the members in O_ACCT when applying it to your own application, as the standard member name are used in both the ownership calculation program and Dynamic Hierarchy Editor.

The user profile contains the security task CalculateOwnership.

Features

Provides the ability to consolidate based on amount of direct control a company has over another, not just the percentage of ownership.

Example Example

Parent unit P holds 60 percent of the shares in consolidation unit A and controls 60 percent of the voting rights. Consolidation unit A holds 80 percent of the shares in consolidation unit U and controls 80 percent of the voting rights. Using the direct share method, the ultimate ownership is inherited based on the direct percentage of control between the direct parent (A) and the child unit (U), as the ultimate parent of the group (P) controls the parent A. Therefore, the ultimate percentage of ownership with direct share value is 80 percent.

For purposes of illustration, calculating the ultimate ownership percentage using the indirect method provides 48 percent, derived from the 60 percent of A owned by P, multiplied by the 80 percent of U owned by A.

End of the example.

Activities

To calculate the ultimate ownership by the direct share method, you run the Ownership Calculation Data Manager package. For more information about this package, see Data Management for the NetWeaver platform or Data Management for the Microsoft platform.