PC100NW IFRS Configuration

1SAP® BUSINESSOBJECTS™ PLANNING AND CONSOLIDATION 10.0, VERSION FOR SAP NETWEAVER STARTER KIT FOR IFRS SP1 Þ Configuration Design 2 Copyright © 2011 SAP® BusinessObjects™. All rights resere!. SAP BusinessObjects an! its logos" BusinessObjects" Cr#stal $e%orts®" SAP BusinessObjects $a%i! &art™" SAP BusinessObjects Data 'nsight™" SAP BusinessObjects Des(to% 'ntelligence™" SAP BusinessObjects $a%i! &arts®" SAP BusinessObjects )atchlist Securit#™" SAP BusinessObjects )eb 'ntelligence®" an! *celsius® are tra!e+ar(s or registere! tra!e+ar(s of Business Objects" an SAP co+%an# an!,or affiliate! co+%anies in the -nite! States an!,or other countries. SAP® is a registere! tra!e+ar( of SAP A. in .er+an# an!,or other countries. All other na+es +entione! herein +a# be tra!e+ar(s of their res%ectie o/ners. 2012001012 Legal Disclaimer 3o %art of this starter (it +a# be re%ro!uce! or trans+itte! in an# for+ or for an# %ur%ose /ithout the e4%ress %er+ission of SAP A.. 5he infor+ation containe! herein +a# be change! /ithout %rior notice. So+e soft/are %ro!ucts +ar(ete! b# SAP A. an! its !istributors contain %ro%rietar# soft/are co+%onents of other soft/are en!ors. 5he infor+ation in this starter (it is %ro%rietar# to SAP. 3o %art of this starter (it6s content +a# be re%ro!uce!" co%ie!" or trans+itte! in an# for+ or for an# %ur%ose /ithout the e4%ress %rior %er+ission of SAP A.. 5his starter (it is not subject to #our license agree+ent or an# other agree+ent /ith SAP. 5his starter (it contains onl# inten!e! content" an! %re0custo+i7e! ele+ents of the SAP® %ro!uct an! is not inten!e! to be bin!ing u%on SAP to an# %articular course of business" %ro!uct strateg#" an!,or !eelo%+ent. Please note that this starter (it is subject to change an! +a# be change! b# SAP at an# ti+e /ithout notice. SAP assu+es no res%onsibilit# for errors or o+issions in this starter (it. SAP !oes not /arrant the accurac# or co+%leteness of the infor+ation" te4t" %re0configure! ele+ents" or other ite+s containe! /ithin this starter (it. SAP DO8S 3O5 P$O9'D8 :8.A:" ;'3A3C'A: O$ ACCO-35'3. AD9'C8 O$ S8$9'C8S. SAP )':: 3O5 B8 $8SPO3S'B:8 ;O$ A3< 3O3CO&P:'A3C8 O$ AD98$S8 $8S-:5S AS A $8S-:5 O; <O-$ -S8 O$ $8:'A3C8 O3 5=8 S5A$58$ >'5. 5='S S5A$58$ >'5 'S P$O9'D8D )'5=O-5 A )A$$A35< O; A3< >'3D" 8'5=8$ 8*P$8SS O$ '&P:'8D" '3C:-D'3. B-5 3O5 :'&'58D 5O 5=8 '&P:'8D )A$$A35'8S O; &8$C=A35AB':'5<" ;'538SS ;O$ A PA$5'C-:A$ P-$POS8" O$ 3O30'3;$'3.8&835. SAP S=A:: =A98 3O :'AB':'5< ;O$ DA&A.8S O; A3< >'3D '3C:-D'3. )'5=O-5 :'&'5A5'O3 D'$8C5" SP8C'A:" '3D'$8C5" O$ CO3S8?-835'A: DA&A.8S 5=A5 &A< $8S-:5 ;$O& 5=8 -S8 O; 5='S S5A$58$ >'5. 5='S :'&'5A5'O3 S=A:: 3O5 APP:< '3 CAS8S O; '35835 O$ .$OSS 38.:'.83C8. 5he statutor# liabilit# for %ersonal injur# an! !efectie %ro!ucts @un!er .er+an la/A is not affecte!. SAP has no control oer the use of %re0custo+i7e! ele+ents containe! in this starter (it an! !oes not en!orse #our use of the starter (it nor %roi!e an# /arrant# /hatsoeer relating to thir!0%art# use of the starter (it. Design Documentation 3 Contents 1. Docu+ent Objectie ..................................................................................................... B 2. :egen! ..................................................................................................................... B A. DESIGN PRINCIPLES BY BUSINESS REQUIREEN! ........................................ " 1. .eneral $e%orting Princi%les........................................................................................... C 2. Seg+ent $e%orting ..................................................................................................... 11 1. Consoli!ation Princi%les .............................................................................................. 12 B. Dournal 8ntries ......................................................................................................... 20 C. Perio!ic ;igures &anage+ent ........................................................................................ 1E 2. ;inancial State+ents for Statutor# Publication .................................................................. B0 F. Data Consistenc# Controls ............................................................................................ B1 G. )or(ing :anguages .................................................................................................... BC E. Securit# an! business /or(flo/s .................................................................................... BC B. C#N$IGURA!I#N #%ER%IE& ...............................................................'( 1. &o!els .................................................................................................................... BG 2. Di+ensions H Consoli!ation +o!el .................................................................................. BG 1. Configuration S%ecific Di+ension Pro%erties ..................................................................... BE B. Default Scri%t :ogic Calculations .................................................................................... BE C. &anual Dournal 8ntr# scri%t logicI Dournal.lgf .................................................................... BE 2. 8li+inations an! A!just+ent $ules ................................................................................. C0 F. Balance Carr# ;or/ar! ................................................................................................ C1 G. 'n%ut for+s an! $e%orts Configuration Princi%les................................................................ C1 E. Securit# settings b# tea+ of users .................................................................................. CB C. APPENDI) ......................................................................................"* 1. Default.lgf Scri%t :ogic ............................................................................................... C2 2. 'n%ut for+ 0 84a+%le of ;1C03et 9ariation Control .............................................................. CF 1. 84a+%le of ;:O)A3 Pro%ert# 9alues .............................................................................. CF B. Dournal.lgf Scri%t :ogic ............................................................................................... CG C. Co%#O%ening.lgf logic scri%t ......................................................................................... CE 2. Carr# ;or/ar! $ules ................................................................................................... 20 F. 8li+ination an! a!just+ent $ules .................................................................................. 21 G. 3a+ing Conention for &etho!0base! &ulti%liers ................................................................ 22 E. -DJ9A:'DA5'O3 Settings .............................................................................................. 21 10. ;irst Consoli!ation Process ........................................................................................... 21 Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 4 Introduction +. Doc,me-t #./ecti0e 5his !ocu+ent !escribes ho/ the SAP® BusinessObjects™ Planning an! Consoli!ation 10.0 starter (it for ';$S on SAP 3et/eaer /as !esigne!. 5he first cha%ter is !ii!e! into business to%icsK for each to%ic the !esign %rinci%les are e4%laine! as a res%onse to the relate! user reLuire+ents. 5he secon! cha%ter su++ari7es the configuration objects +entione! in the first cha%ter b# %ro!uct area. A%%en!ices aailable in cha%ter 1 are screenshots an! scri%ts reference! in the first t/o cha%ters" /hich %roi!e +ore !etails about the contents of scri%ts" business rules" an! !i+ensions. S%ecific o%erating %rocesses are also e4%laine! in this cha%ter. Before #ou atte+%t to change the configuration" /e highl# reco++en! that #ou rea! this !ocu+ent thoroughl#" in or!er to un!erstan! ho/ configuration objects interact in the solution" an! ho/ to enhance the starter (it in accor!ance /ith the /a# it /as !esigne!" /hen a!a%ting the starter (it to %roject s%ecific reLuire+ents. 1. Lege-2 Objecties , $eLuire+ents Design %rinci%les ConseLuences on the o%erating %rocess )arning Database !iagra+ Accounting !iagra+ Blue italic Leveraged Planning and Consolidation product feature Italic Name of the configuration object in the starter kit Design Documentation 5 A. Desig- Pri-ciples .y B,si-ess Re3,ireme-t +. Ge-eral Reporti-g Pri-ciples +.+. Reporti-g Cycle 5he starter (it for ';$S is !esigne! to su%%ort a full consoli!ation scenario for actual !ata. 5he re%orting c#cle enco+%asses %re%arator# tas(s" !ata entr# tas(s" consoli!ation tas(s" an! !ata retrieal through a librar# of re%orts. ;or the successie consoli!ation re%orting c#cles" instances of the BP;s liste! aboe are i!entifie! b# the Actual Categor# 'D. +.1. Acco,-ti-g Pri-ciples +.1.+. $i-a-cial Sta-2ar2s $e%orte! !ata is consoli!ate! accor!ing to ';$S. :ocal !ata can be collecte! follo/ing ';$S" or in local .AAP" an! subseLuentl# a!juste! to ';$S in in%ut for+s. 5he consoli!ation scenario is built for actuals an! is !ii!e! into B +ain Business Process Flows @BP;AI − Preparator tasksI &aintain e4change rates" consoli!ation sco%e" an! run co%# o%ening balances − !ata entrI :oa! files or +anual entr# of balance sheet" inco+e state+ent" brea(!o/n b# +oe+ent an! interco+%an#. $un !ata ali!ation an! !ata sub+ission. − Consolidation tasksI $un %reli+inar# chec(s" %ost +anual journal entries" run consoli!ation" chec( the consoli!ation !ashboar!" ie/ annual re%orts − "eports librar# Annual re%orts" anal#sis re%orts" brea(!o/n re%orts" control re%orts 5he !ata entr tasks BP; is !esigne! for local users /hereas Preparator tasks an! Consolidation tasks BP;s are !esigne! for central users. One consoli!ation %rocess is !efine! for all consoli!ation freLuencies @+onthl#" Luarterl#MA. 5he consoli!ation !ata is store! in a consoli!ation0t#%e model na+e! C$N%$LI!A&I$N. An NAC&'AL( categor 'D is create! an! use! for that %ur%ose. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 6 :ocal !ata is store! on the INP'& au!it 'D 1 @audit0t#%e dimensionA. SubseLuent local a!just+ents in in%ut for+s are store! on the '3P-511 au!it 'D 5he user can select the au!it 'D in the 8P& conte4t of in%ut for+. 5han(s to a s%ecific !ata Access Profile" @na+e! O)ntr levelPA onl# O'n%utP au!it 'Ds @base +e+bers of OALL*INP'&PA can be selecte! b# local en! users. 't is therefore %ossible to !#na+icall# enhance the list of local restate+ent au!it 'Ds aailable in in%ut for+s b# assigning the sa+e %ro%ert# alue an! hierarchical no!e to the ne/ au!it 'D@sA. +.1.1. I-come Stateme-t 5he 'nco+e State+ent is !isclose! b# function. +.4. Reporti-g I-2icators 5he chart of accounts is built in a /a# that +a(es it %ossible to +a% accounts /ith ';$S ta4ono+# ite+s. &ore !etails on %ublishing un!er the *B$: for+at /ith the starter (it is su%%lie! in Q Error5 Re6ere-ce so,rce -ot 6o,-2. %age Error5 Boo7mar7 -ot 2e6i-e2.. +.4.+. Re6ere-ce i-2icators +.4.+.+. $i-a-cial Stateme-t items $eference in!icators inclu!e balance sheet @BSA accounts an! inco+e state+ent accounts @'SA. • 5he State+ent of ;inancial Position H or Balance Sheet @BSA 0 !istinguishes bet/een the follo/ing ite+sI − 3on0current , current ite+s 2 − .ross alues , !e%reciation an! i+%air+ent , net alues • 5he 'nco+e State+ent @'SA is co+%ose! of the follo/ing bloc(s of accountsI − O%erating %rofit − ;inancial result − 5a4 @Current an! !eferre!A − Profit @lossA fro+ !iscontinue! o%erations 1 Au!it 'Ds are !escribe! in Q A.B.1.C %age 2B 2 'n accor!ance /ith 'AS1 H ;inancial State+ents Design Documentation 7 5he reLuire+ents regar!ing the State+ent of Cash ;lo/s" the State+ent of Changes in 8Luit#" an! the State+ent of Co+%rehensie 'nco+e are !etaile! in cha%ter 2 %age B0. Str,ct,re o6 the Chart o6 Acco,-ts 5he chart of accounts is organi7e! into hierarchies. Accounts are al/a#s inclu!e! in a %arent +e+ber account b# %o%ulating the PA")N&+, fiel! in the ACC$'N& dimension. 5he follo/ing hierarchies are !efine!I − Balance sheetI inclu!es Asset accounts @A----A" 8Luit# accounts @)----A an! :iabilit# accounts @:----A − .rou% 'nco+eI inclu!es all PR: accounts @P----A Co2i6icatio- 5he co!ification %rinci%le allo/s the user to !o the follo/ingI − i!entif# the account t#%e @A S Assets" 8 S 8Luit#" MA an! subt#%e @for the secon! !igit 1 S 3on0current ite+ an! 2 S Current ite+A. − sort accounts in logical or!er in re%orts notabl# in the balance re%orts @assets base +e+bers" eLuit# an! liabilities base +e+bersA 'n a!!ition" for total accounts" the suffi4 5 allo/s the user to !istinguish bet/een total accounts an! leaf0leel accounts. +.4.+.1. Bala-ce Sheet o0eme-ts 'n or!er to be able to calculate the State+ent of Cash ;lo/s ite+s an! to %ro!uce the State+ent of Changes in 8Luit#" changes in the BS ite+s are ca%ture! or calculate! as follo/sI − ;or current assets an! liabilities @.ross alueA" the net ariation is calculate! an! !is%la#e! in in%ut for+s − ;or other BS accounts" a !etaile! anal#sis of +oe+ents is reLuire! − S%ecific o%erations are i!entifie! se%aratel# for all BS accountsI $eclassification" Changes in accounting %olicies" 'nternal +ergers @transfer of BS accounts fro+ the acLuire! to the acLuiring co+%an# in case of an internal +ergerA − O%ening balances are auto+aticall# calculate! fro+ the closing balance of the %reious #ear. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 8 Usi-g a $L#& Dime-sio- 5he FL$. dimension @Subtable t#%eA is use! to !etail the alue change bet/een the o%ening balance @F//A an! the closing balance @F00A for balance sheet accounts. All flo/s" e4clu!ing F00" are inclu!e! in a %arent +e+ber OClosing0Calculate!P @)N!A in or!er toI − 8asil# chec( that the su+ of the o%ening balance an! the %erio! +oe+ents eLual the closing %osition in re%orts @)N! S F00A − D#na+icall# select the o%ening flo/ an! the +oe+ent flo/s in re%orts Acco,-t 8 $lo9 Com.i-atio-s • 5he follo/ing co++on flo/s are ali! for all BS accountsI − PositionsI ;000O%ening" ;EE0Closing − S%ecific flo/s @e4ce%t for so+e eLuit# accountsAI ;C00$eclassification" ;0E0Change in accounting %olicies" ;F00'nternal +ergers • A!!itional releant flo/s !e%en! on the account. 5his lin( is !efine! in the FL$.AN account propert @See Appendi- 1A. 5his %ro%ert# is use! to stri%e cells that corres%on! to inconsistent account0flo/ crossoers in in%ut for+s. • ;or PR: accounts" onl# flo/ P:EE1Closing is use!. $lo9 Calc,latio-s a-2 Co-trols • ;or all BS accounts" the net ariation @i.e. closing balance H To%ening balance U s%ecific flo/sVA is calculate! in flo/ ;1C09ariation. 5his calculation is inclu!e! in the default script logic" /hich enables a real ti+e calculation as an! /hen !ata is in%ut , i+%orte! at local leel. @See Appendi- A2,3. • ;or non0current accounts" the net ariation +ust be !istribute! on releant flo/s in the corres%on!ing in%ut for+. )hen saing ne/ alues" the ariation flo/ @;1CA is calculate! again an! +ust be 7ero in the for+. 5he controls are %erfor+e! !uring the !ata ali!ation ia s%ecific controls rules. 5he flo/ ;1C is then highlighte! in in%ut for+s @see Appendi- 2A. • ;or current accounts @e4clu!ing %roision an! allo/ance accountsA the net ariation a+ount is not !istribute! on flo/s an! re+ains on the net ariation flo/ @;1CA. • 5/o %reentie !ata entr# controls hae been inserte! in the 3et)eaer bac(en! through the '4*validation transaction. 5he# %reent the user fro+ entering or i+%orting !ata on the Profit an! :oss flo/ @P:EEA for Balance Sheet accounts on the one han!" an! fro+ entering or i+%orting !ata on the Balance Sheet closing ;lo/ @;EEA for Profit an! :oss accounts on the other han! @see Appendi-Error5 Re6ere-ce so,rce -ot 6o,-2.A. ;or +ore infor+ation on this feature %lease refer to the Planning an! Consoli!ation on 3et/eaer !ocu+entation. #pe-i-g Bala-ces ;or in%ut !ata" the calculation of o%ening balances is e4ecute! centrall# b# using the OCo%#O%eningP !ata 5anagement Package /ith the Carr Forward "ules. @See Q B.1.1 %age 20A. Design Documentation 9 Remi-2er : I-p,t a,2it IDsI 'n%ut !ata is i!entifie! b# the +e+bers of the au!it 'D !i+ension /ith the %ro%ert# DA5AS$CJ5<P8 S ' @'n%utA. &ore infor+ation regar!ing this !i+ension is aailable in B.1.C %age 21. +.4.+.4. $oc,s o- E3,ity Acco,-ts a-2 E3,ity Speci6ic o0eme-ts 5he State+ent of ;inancial Position !oes not !istinguish bet/een accu+ulate! retaine! earnings of %rior %erio!s an! the net inco+e of the current %erio!. At local leel" the follo/ing eLuit# +oe+ents are ca%ture!I − 3et inco+e of the %erio!I calculate! fro+ the PR: accounts − 5otal !ii!en!s %ai! @internal an! e4ternalA − Subscri%tion to ca%ital 5he a%%ro%riation of retaine! earnings is !isclose! on one single accountI 81210 H $etaine! earnings. 5he follo/ing eLuit#0s%ecific flo/s are create!I − ;10 H 3et inco+e of the %erio!I is auto+aticall# calculate! b# the !efault script logic @for au!it 'Ds !efine! /ith DA5AJS$CS'A" or inclu!e! in the 4ournal2lgf scri%t for +anual journal entries. Both scri%ts enable a real ti+e calculation. @See Appendi- 1 an! a%%en!i4 BA − ;02 H Dii!en!s − ;B0 H Subscri%tion to ca%ital ;20" ;10 an! ;CC are also associate! /ith releant eLuit# accounts such as &reasur shares to ca%ture the increase or !ecrease in alues or fair alue a!just+ents. F00 F99 F06 F10 F40 Opening position Closing position Dividends Net income Subscription to capital E1110 Issued capital E1210 Share premium ¤ ¤ E1310 Treasury shares ¤ E1510 Revaluation surplus, before tax E1511 Income tax on revaluation surplus E1520 Actuarial G&L, before tax (suspense acc.) E1521 Income tax on actuarial G&L (suspense acc.) E1540 Hedging reserve, before tax E1541 Income tax on hedging reserve E1550 Fair value reserve, before tax E1551 Income tax on fair value reserve E1570 Equity component of compound fin. Inst. E1610 Retained earnings ¤ ¤ = P&L ¤ E199T Equity attributable to owners of parent Legend: ¤ Input Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 10 +.'. Sig- Co-0e-tio- 'n or!er to full# leerage the soft/are6s !ata storage engine as /ell as the calculation engine of total accounts" the follo/ing rules a%%l# to closing balancesI • AssetsI gross alues are entere! as %ositie a+ountsK a+orti7ation an! !e%reciation are entere! as negatie a+ounts • 8Luit# an! liabilitiesI a+ounts are entere! as %ositie a+ounts • 'nco+e State+entI reenues an! e4%enses are entere! as %ositie a+ounts. Assets A+orti7ation R De%reciation 8Luit# R :iabilitiesW 'nco+e 84%enses 8ntr# U 0 U U U Dis%la# 100 @100A 100 100 @100A 'n a!!ition to the sign logic !efine! for accounts" flo/s use the follo/ing rulesI Assets 8Luit# R :iabilitiesW .ross alues A+orti7ation R De%reciation 'ncrease Decrease 'ncrease Decrease 'ncrease Decrease 8ntr# U 0 0 U U 0 Dis%la# 100 @100A @100A 100 100 @100A W84ce%t 5reasur# shares" for /hich the logic is reerse!. 5he account dimension is !efine! /ith the ACC&6P) propert. 5han(s to this %ro%ert#" alues are auto+aticall# recor!e! /ith the a%%ro%riate sign for the account. Accounts are !efine! /ith the follo/ing ACC&6P) aluesI − AS5I Asset accounts @gross alue" !e%reciation" i+%air+entA. Default sign is %ositie @!ebitA. 8ntr# alues +ust be negatie for !e%reciation an! i+%air+ent − :8?I :iabilit# an! eLuit# accounts. Default sign is negatie @cre!itA − '3CI 'nco+e accounts. Default sign is negatie @cre!itA − 8*PI 84%ense accounts. Default sign is %ositie @!ebitA As e4%laine! before" inco+e an! e4%enses are entere! as %ositie a+ounts. 5o ease the rea!abilit# of the 'nco+e State+ent" a %articular alue for+at a%%lies to e4%ense accountsI alues are sho/n in negatie though the# are entere! as %ositie. 5o calculate alues on %arent +e+bers @total accountsA" the ACC&6P) %ro%ert# is also ta(en into account. 5he calculate! alue /ill be !is%la#e! follo/ing the ACC5<P8 propert. Design Documentation 11 1. Segme-t Reporti-g I-come Stateme-t; Assets a-2 Lia.ilities .y Segme-t Seg+ent re%orting is built b# entit# aggregation" /hich i+%lies that each entit# belongs to onl# one seg+ent. 5he scenario /here a legal co+%an# belongs to seeral seg+ents is su%%orte! b# s%litting legal co+%anies into o%erating entities /hich re%ort 'S ite+s an! o%erating assets an! liabilities" an! non0o%erating entities /hich re%ort non0o%erating ite+s such as eLuit#" ta4 an! inest+ents. 'n ter+s of !ata entr#" one BP; instance is create! %er entit#" i.e. business unit. 'n or!er to balance BS an! 'S for all entities @o%erating an! non0o%eratingA that co+%ose a co+%an#" t/o balancing accounts hae been !efine!I − :22B:0Balancing account 0 Balance sheet − P22B:0Balancing account 0 'nco+e state+ent 84a+%leI I-tragro,p8I-tergro,p i-tercompa-y elimi-atio-s 'n the starter (it" seg+ent re%orting is built b# entit# aggregation. 5he starter (it !oes not %roi!e intragrou%,intergrou% interco+%an# eli+ination feature. Non Operating Operating Segment A Operating Segment B Total company (no intra elimination) Assets Fixed assets 500 100 200 800 Cash 200 200 700 100 200 1000 Equity & Liabilities 0 Equity 300 300 Net Income 40 60 100 Net Income-Balancing 100 -40 -60 0 Debts 100 400 100 600 B/S-Balancing 200 -300 100 0 700 100 200 1000 Income Statement 0 Net Income of the period 40 60 100 Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 12 4. Co-soli2atio- Pri-ciples 4.+. $oreig- C,rre-cy Co-0ersio- 5he 'nco+e State+ent accounts are conerte! using the aerage rate of the re%orting %erio!. Accounts in the State+ent of ;inancial Position are conerte! using the %erio!0en! rate" e4ce%te! inest+ents an! eLuit# accounts /hich are +aintaine! at their historical acLuisition alue. BS +oe+ents are translate! using aerage rate. ;or eLuit# accounts" the currenc# translation !ifferences are recor!e! in a !e!icate! account in the reseres. As so+e transaction alues nee! to be conerte! at a s%ecific rate" such as !ii!en!s !istribution an! the balance sheet %osition of inco+ing units" the !efinition of currenc# rate %er co+%an# is reLuire!. All alues are translate! Ocu+ulate!P" +eaning that the O#ear to !ateP alue for the closing %erio! is translate! using the rate of the sa+e closing %erio!. 5he aboe currenc# conersion rules also a%%l# to accounts for a!!itional anal#ses. Rates De6i-itio- a-2 Rate I-p,t 6orm 5he follo/ing "A&)% are !efine! an! +ust be entere! in the "A&)% modelI − A78I aerage rate − )N!I closing rate − !I7I !ii!en!s rate 5he $A58S +o!el inclu!es the "A&))N&I&6 !i+ension /hich allo/s the consoli!ation +anager to in%ut s%ecific currenc# rates for a gien co+%an#. 5his !i+ension is initiali7e! in the "ate /eb input form. 't contains the follo/ing +e+bersI − .:OBA: +e+ber" against /hich the !efault rates b# in%ut currenc# +ust be in%utK it is therefore initiali7e! in the conte4t of the input form2 − &e+bers that corres%on! to entities to /hich a s%ecific rate +ust be a%%lie! an! /hich therefore hae i!entical i!entifiers @'DsA. 5hese +e+bers can be inserte! as a%%ro%riate b# the central user in the in%ut for+. 5he currenc conversion rules a%%l# the s%ecific rate for one entit# if such a rate e4ists. 'f not" it /ill !efault to the general currenc# rate in%ut on the .:OBA: +e+ber. Design Documentation 13 Remi-2er< E-teri-g Speci6ic Rates .y E-tity 'n or!er for the conersion engine to a%%l# s%ecific rates b# entit#" it is necessar# to in%ut the s%ecific rate for the entit# @"A&))N&I&6 !i+ensionA not onl# against its res%ectie local currenc# @'3P-5C-$$83C< !i+ensionA but also against the consoli!ation currenc#" for e4a+%le 8-$ or -SD @'3P-5C-$$83C< !i+ensionA. 5his is because the conersion engine /ill not refer to the !efault rate store! on the .:OBA: $A58835'5< +e+ber in the case of a s%ecific rate for one entit#. 84a+%leI R,le 2e6i-itio- • 5he currenc conversion rules are configure! b# using the "A&)&6P) %ro%ert# of the ACC$'N& !i+ension in or!er to associate grou%s of accounts to i!entical conersion behaiors. Acco,-ts Ge-eral tra-slatio- r,le RA!E!YPE Property 'S accounts Aerage rate @A9.A A98$ BS accounts @closing balanceA translate! using the closing rate Closing balanceI closing rate @83DA &oe+entsI aerage rate @A9.A C5A calculation on flo/ ;G0 account b# account A9383D 8Luit# accounts &aintaine! at their historical alueI o%ening balance is not change! @A%*I% formulaA" other +oe+ents are translate! using their res%ectie rate @A78" !I7" )N!" OP83DA. 5he 9ForceClosing: $ption is use! so that the conerte! closing %osition eLuals the su+ of conerte! flo/s. C5A calculation on flo/ ;G0 of the currenc# conersion resere account 81C20. ='S5J8?1 Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 14 Currenc# translation account @81C20A 5he o%ening balance is +aintaine! at the conerte! alue of the %rior #ear en! @A%*I% formulaA ='S5J8?2 'nest+ent accounts Closing balanceI closing rate @83DA &oe+entsI aerage rate @A9.A C5A calculation on flo/ ;G0 ConseLuentl#" the general %rinci%le a%%lie! to inest+ents is i!entical to the one use! for other BS accounts. 'n a!!ition" this conersion rule %o%ulates the <A1G10C off balance account /hich stores the cu+ulate! alue of the currenc# translation effect on inest+ents oer ti+e. ='S5J'39 Off balance .oo!/ill !eclaration accountsI Bargain %urchase Closing balanceI closing rate @83DA &oe+entsI aerage rate @A9.A ='S5J.) Off balance .oo!/ill !eclaration accountsI 0 .oo!/ill .ross 9alue 0 .oo!/ill '+%air+ent @Partial an! ;ull .oo!/illA 5he sa+e %rinci%le as the one !efine! for the inest+ent accounts is a%%lie! to the goo!/ill. ='S5J.).9 ='S5J.).93 ='S5J.)'& ='S5J.)'&3 • 5he FL$. !i+ension D'&:'S5JCO39JS8: %ro%ert# is also leerage! in the currenc# conersion rules in or!er to !#na+icall# associate grou%s of flo/s to one gien conersion behaior /ithin one account set associate! /ith one $A585<P8 %ro%ert#. $lo9s Property SUB!ABLES=#RIG ;lo/s translate! using the closing rate of the %reious %erio! SJCO39JOP ;lo/s translate! using the aerage rate SJCO39JA9 ;lo/s translate! using the !ii!en!s rate SJCO39JD'9 ;lo/s translate! using the closing rate SJCO39J83D C,rre-cy !ra-slatio- Di66ere-ces ;or eLuit# accounts" the currenc# !ifference resulting fro+ the translation of +oe+ents at s%ecific rate @historical" aerage" o%eningA is recor!e! in a !e!icate! eLuit# account 81C20 on flow F;/0;oreign e4change gain,loss. ;or other BS accounts" the currenc# !ifference resulting fro+ the translation of +oe+ents at aerage rate" an! the translation of closing balance at closing rate" is recor!e! in the original account on flow F;/0;oreign e4change gain,loss. Design Documentation 15 A,2it ID .eha0ior Regar2i-g Co-0ersio- 5he currenc# translation %rocess a%%lies onl# to au!it 'Ds i!entifie! b# the 6<6 alue of the I%*C$N7)"&)! propert. ConseLuentl# this alue has been assigne! to au!it 'Ds inten!e! for in%ut an! a!just+ents in the starter (it. !ech-ical Acco,-ts 6or C!A C,m,lati0e %al,e ;or inest+ent an! goo!/ill accounts" technical accounts are use! to store the cu+ulate! conersion !ifferences as a source a+ount to be subseLuentl# reclassifie! fro+ consoli!ation reseres to conersion reseres as %art of the C5A auto+atic entr#. @See Q A. B.1.2" Currenc# 5ranslation A!just+ent @C5AAA $irst co-soli2atio-< co-0ersio- a-2 c,m,lati0e C!A As e4%laine! aboe" eLuit# accounts are translate! using the historical alue +etho! @ASJ'S for+ulaA. )hen running the consoli!ation for one gien consoli!ation sco%e for the first ti+e in the a%%lication" the historical alues of these accounts +ust be recor!e! as /ell as the cu+ulate! a+ount of the conersion reseres as %art of the %re%arator# tas(s. 5his can be !one in either follo/ing /a#sI − B# i+%orting the conerte! o%ening balance on the o%ening flo/ !irectl# at conerte! leel on a technical %rior #ear0en! ti+e %erio! use! for o%ening !ata" an! !efining entit#0s%ecific e4change rates for this technical consoli!ationK the o%ening rate" the aerage rate an! the closing rate shoul! be i!entical so that no currenc# conersion !ifference is co+%ute! on this ti+e %erio!K − B# %osting a journal entr# to return to the historical translation a+ount. 5he !etaile! %roce!ure is aailable in the starter (it o%erating gui!e an! in a%%en!i4 @see 10.2" 8Luit# Conersion an! C5A on %age 21A. 4.1. Co-soli2atio- !ype 5he starter (it follo/s the !irect consoli!ation a%%roach /here entities are attache! !irectl# to the +ain %arent co+%an# of the consoli!ation %eri+eter. A sub0consoli!ation in%ut fra+e/or( is !efine! for entities consoli!ate! /ith the eLuit# +etho!. 'n the C$N%$LI!A&I$N +o!el" consoli!ation accounts @such as .oo!/ill" or 3on0controlling interestsA" an! consoli!ation flows @such as Change in consoli!ation +etho!" Change in consoli!ation rateA are not aailable in in%ut for+s associate! /ith the stan!ar! !ata entr# BP; inten!e! for stan!ar! re%orting entities. • Consoli!ation accounts are filtere! b# using the 'P"$FIL) propert in the 5ember selectorI accounts haing the alue 2C$N%$ for the 'P"$FIL) %ro%ert# /ill not be aailable in in%ut for+s. • Consoli!ation flo/s are assigne! /ith the 8?& alue for the FL$.*!$C %ro%ert#. 5his alue is not initiali7e! in for+s inten!e! for stan!ar! re%orting entities. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 16 S,.>scope a-ageme-t 5he Planning an! Consoli!ation consoli!ation engine natiel# han!les sub0consoli!ations" that is consoli!ations of grou%s hierarchicall# organi7e! into sco%es an! sub0sco%es. 5he %rereLuisites are as follo/sI − Consoli!ation %eri+eters organi7e! hierarchicall# ia the PA")N&*8"$'P %ro%ert# − 8ntities attache! to sub0sco%es or !irectl# to the to% sco%e in the O/nershi% &anager 5he follo/ing o%tions +ust be actiate! so that the aggregate! a+ounts of %ossible sub0 consoli!ations are store! in the fact tableI − S5O$8J835'5< %ro%ert# set to N<6 @<esA − 835'5< %ro%ert# set to a !e!icate! entit# 'D /hich the aggregate! alue of the sco%e an! sub0sco%es shoul! be recor!e! onto An e4a+%le is gien in the starter (it /ith the ALL*<$N)% to% consoli!ation %eri+eter. =o/eer no consoli!ation /as e4ecute! an! ali!ate! for this %eri+eter. 4.4. Co-soli2atio- etho2s a-2 Rates 5he follo/ing consoli!ation +etho!s are su%%orte! in the starter (itI − ;ull +etho! @%urchase +etho!A − Pro%ortional +etho! − 8Luit# +etho! 5he consoli!ation %rocess uses the follo/ing ratesI − Consoli!ation rate − O/nershi% rate 5he consoli!ation %eri+eter is entere! +anuall#. 5he starter (it !oes not inclu!e an# %rocess for !eter+ining the consoli!ation +etho! b# entit# auto+aticall#" nor calculating the consoli!ation rate an! financial interest rate. #&NERS?IP o2el Consoli!ation +etho!s an! %eri+eter rates are store! in the $.N)"%+IP 5odel. 5he# are use! to !efine the consoli!ation %eri+eter ia the $wnership 5anage2 5he list of aailable consoli!ation %eri+eters is +aintaine! in the grou%0t#%e dimension na+e! Conso%cope. etho2s 5he consolidation methods !efine! in the starter (it are the follo/ingI − =ol!ing @&ain ParentA. T&etho! 'DS111V 5his +etho! +ust be assigne! to the consoli!ating co+%an# for /hich no eLuit# eli+ination is boo(e!. − ;ull @Purchase +etho!A T&etho! 'D S 100V − Pro%ortional T&etho! 'D S C0V − 8Luit# T&etho! 'D S 20V Design Documentation 17 Rates 5he rates use! corres%on! to the follo/ing o/nershi% accounts @$.NACC$'N&A in the O)38$S='P +o!elI − PCO3 Consoli!ation rate − PO)3 ;inancial interest rate @grou% shareA 5hese rates are !efine! /ith the %ro%ert# 'SJ'3P-5S<. Proportio-al etho2 All a+ounts re%orte! b# co+%anies consoli!ate! using the %ro%ortional +etho! are re!uce! to corres%on! to the consoli!ation rate. 84a+%leI A co+%an# re%orts O$eenuesP for 1000 X. 5his co+%an# is consoli!ate! using %ro%ortional +etho! an! a consoli!ation rate of B0Y. A+ount Au!it 'D $e%orte! alue 1000 '3P-5 A%%ortion+ent 0200 &5=JP$O A%%ortione! alue B00 P$OPO$5 5he &5=JP$OP 5ethod1based 5ultiplier is !efine! to %ro%ortionate the re%orte! alues b# cancelling the Onon0grou%P a+ount @formulaI 10PCO3A. 5his a%%ortion+ent is i!entifie! b# the 5&+*P"$P audit I! /hich is %o%ulate! b# the 5&+*P"$P )limination and adjustments rule associate! /ith the OProportionalP adjustment tpe. As a conseLuence no rule !etail is reLuire! an! the consoli!ation engine a%%lies this a%%ortion+ent to all accounts for entities consoli!ate! /ith the %ro%ortional +etho!. E3,ity etho2 All a+ounts re%orte! b# co+%anies consoli!ate! /ith the eLuit# +etho! +ust be cancelle! at grou% leel. 5he case of eLuit# accounts is e4%laine! in Q B.1.C belo/" Consoli!ate! 8Luit# Calculation. 5he 5&+*)= consolidation rule is !efine! to cancel out all of the re%orte! alues @factor 1 use! as formulaA. 5his cancellation is i!entifie! b# the 5&+*)=' audit I! /hich is %o%ulate! b# the 5&+*)='I&6 )limination and Adjustment rule associate! /ith the O)>uitP adjustment tpe. As a conseLuence no rule !etail is reLuire! an! the consoli!ation engine a%%lies this cancellation to all accounts for entities consoli!ate! /ith the eLuit# +etho!. 84a+%leI A+ount Au!it 'D $e%orte! alue 1000 '3P-5 8li+. 8Luit# +etho! 01000 &5=J8?- A%%ortione! alue 0 P$OPO$5 Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 18 4.'. Perimeter Cha-ges 5o %ro!uce the State+ent of Cash ;lo/s an! the State+ent of Changes in 8Luit#" the i+%acts of status changes for entities in the sco%e such as inco+ing an! leaing co+%anies" an! internal +erger are trac(e! se%aratel# fro+ other changes. De6i-i-g 2e2icate2 $lo9s a-2 A,2it IDs • )ith an a!a%te! configuration" the consoli!ation engine is able to auto+aticall# %o%ulate !istinct flows /ith the a+ount of sco%e change effects" !e%en!ing on the changes in the entit#6s an!,or the 'nterco6s status in the consoli!ation sco%e. 5hese flo/s are i!entifie! using the FL$.*&6P) propert. • 5his %rocess is triggere! on auto+atic0t#%e au!it 'Ds. − As for the inco+ing unit flo/ an! outgoing unit flo/" 2 !e!icate! au!it 'Ds" SCOJ'3C an! SCOJO-5" are create! an! associate! /ith 2 s%ecific 8li+ination an! A!just+ent rules /ith i!entical 'Ds. 5hese rules are associate! /ith the New an! Leaving Adjustment tpe in or!er for the consoli!ation engine to be able to i!entif# the au!it 'D to %o%ulate !e%en!ing on the sco%e change − As for changes in consoli!ation +etho!" the !ifference is %oste! on the au!it 'D that is use! for the a%%ortion+ent e4%laine! in 1.1 aboe − As for changes in consoli!ation rate" the !ifference is %oste! on the au!it 'D %o%ulate! b# the auto+atic consoli!ation entr# rule @8li+inations" 3C'"MA • 5he connection bet/een the s%ecific Flows an! the s%ecific Audit I!s !efine! to i!entif# an! !istinguish bet/een effects of sco%e change is su++ari7e! in the follo/ing tableI $lo9 $L#&=!YPE Property A,2it ID A2/,stme-t type E-tity I2e-ti6icatio- process .y the co-soli2atio- e-gi-e ;010'nco+ing units 9A$SCP38) SCOJ'3C 3e/ 8ntit# not inclu!e! in the %rior sco%e ;010Change in consoli!ation +etho! 9A$SCP&85= &5=JP$O &5=J8?- No dedicated rule Current consoli!ation +etho! is !ifferent fro+ %rior sco%e ;E20Change in interest , consoli!ation rate 9A$SCPP8$C Au!it 'D of the corres%on!ing auto+atic consoli!ation entr# No dedicated rule Current consoli!ation rate , interest rate is !ifferent fro+ %rior sco%e ;EG0Outgoing units 9A$SCP:8A9 SCOJO-5 :eaing A%%ro%riate leaing +etho! assigne! to the entit# @see belo/A Design Documentation 19 #,tgoi-g ,-its : Ge-eral Case ;or all outgoing units" the reersal of the closing %osition is i!entifie! to sho/ an! calculate the i+%act of outgoing balance sheet ite+s. ;or entities leaing the consoli!ation sco%e at the beginning of the %erio!" %ossible re%orte! balance sheet +oe+ents an! inco+e state+ent ite+s hae no i+%act on the financial state+ents. 5he follo/ing consoli!ation methods are create! in the Business "ule an! associate! /ith the a%%ro%riate 5ethod tpe in or!er to trigger the built0in %rocess I − G00 H Dieste! last #ear en! − GGG H :eaing !uring current #ear 5hese +etho!s are associate! /ith the Leaving method tpe. 5hus the closing %osition of all outgoing units is cancelle! out fro+ flo/ ;EE an! reerse! ia flo/ ;EG. 'n a!!ition for entities leaing the consoli!ation sco%e at the beginning of the %erio!" the O;//1divested last ear endP +etho! cancels out balance sheet flo/s an! inco+e state+ent ite+s. Pro2,ct &ar-i-g 'n the earl# 10.0 release of the soft/are" the natie consoli!ation engine6s behaiors corres%on!ing to the Leaving ?!uring the 6ear3 5ethod tpe an! the Leaving ?)nd of 6ear3 5ethod tpe are inerte!. As a conseLuence the +etho! O;//: 1 !ivested last ear end is in fact associate! /ith the Leaving ?!uring the 6ear3 5ethod tpe. 5he sa+e a%%lies to +etho! 9@//: A Ac>uired last ear. I-ter-al merger AcLuiring entities are able to re%ort the increase in assets" liabilities an! eLuit# resulting fro+ the internal +erger. 5he starter (it allo/s the consoli!ation +anager to +atch the transfer of assets" liabilities an! eLuit# ite+s fro+ the acLuire! entit# into the acLuiring entit#. 5he ;F00'nternal &ergers flo/ is create! for the acLuiring entities to recor! the increase in assets" liabilities an! eLuit# resulting fro+ the internal +erger. &oreoer at the acLuire! co+%an#" the %C$*$'& s%ecific elimination and adjustment rule reclassifies the reersal of the closing %osition" /hich is triggere! b# !efault on ;EG for outgoing entities associate! /ith one of both :eaing0&etho! t#%es" onto ;F0. 5he follo/ing consoli!ation methods are create! for that %ur%oseI − F00 H AcLuire! last #ear en! − FFF H AcLuire! !uring current #ear 5hese +etho!s are use! in the A5*00*B, Consolidation "ule /hich is in turn use! in the SCOJO-5 a!just+ent rule. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 20 Disti-g,ishi-g the #rigi-al etho2 6or Di0este2 8 erge2 E-tities D,ri-g the Year Consoli!ation entries boo(e! in entities leaing the consoli!ation sco%e or against grou% %artner leaing the consoli!ation sco%e +ust be reerse! in a consistent /a# /ith the reersal of in%ut !ata. ;or entities leaing the sco%e !uring the %erio!" the balance sheet +oe+ents are +aintaine! an! the closing %osition +ust be reerse!. 5he status as leaing entit# in the sco%e is the secon! criteria" co+bine! /ith the ObusinessP consoli!ation +etho!" /hich +a(es it %ossible to boo( releant auto+atic entries on the a%%ro%riate sco%e changes flows. 5he follo/ing consoli!ation methods are conseLuentl# create!I − GC0 H Pro%ortional leaing !uring current #ear − G20 H 8Luit# leaing !uring current #ear − FC0 0 Pro%ortional acLuire! !uring current #ear @internal +ergerA − F20 H 8Luit# acLuire! !uring current #ear @internal +ergerA 5hese +etho!s are use! in 5ethod1based 5ultipliers use! in turn in seeral eli+ination an! a!just+ent rules /hen nee!e!. 5hus the closing %osition is reerse! onto the a%%ro%riate flo/ b# auto+atic entr# t#%e. '. @o,r-al E-tries '.+. Best Practices '.+.+. Bala-ce Carry $or9ar2 5he starter (it allo/s the user to %o%ulate the o%ening balance of the current %erio! fro+ the %rior #ear0en! closing balance in or!er to ensure the flo/ consistenc# oer ti+e %erio!s. 5his a%%lies to the arious a+ount t#%esI 'n%ut !ata" +anual journal entries @&D8A an! auto+atic journal entries @AD8A. O%ening balances of the current #ear result fro+ the carr# for/ar! of closing balances fro+ the %reious #ear. 5his calculation is !efine! an! e4ecute! in the follo/ing ste%sI Bala-ce Carry $or9ar2 o6 a-,al E-tries ;or all au!it 'Ds /ith the propert DA5AS$CJ5<P8 S &" o%ening balances are calculate! using the data manager package OCo%#O%eningP /ith the carr forward rules !efine! as follo/I • Source accountI 5BS @all BS accountsA • Source flo/I ;EE0Closing balance • Destination flo/I ;000O%ening balance • DataSource t#%eI All @+eaning Oin%utP an! O+anualP" but not Oauto+aticPA Design Documentation 21 Calc,latio- o6 the Co-soli2ate2 #pe-i-g Bala-ces AA,tomatic E-triesB 5he carr forward rules !o not a%%l# to auto+atic entries @au!it 'Ds /ith %ro%ert# !A&A%"C*&6P) S AA. 'nstea!" the consoli!ation engine calculates the consoli!ate! o%ening balances @flo/ ;00A of the current #ear b# co%#ing the closing balance @flo/ ;EEA of the %reious #ear. '.+.1. $lo9>Base2 Co-soli2atio- ;or +anual an! auto+atic journal entries" the closing %osition is al/a#s calculate! fro+ +oe+ents. 5his contributes to the consistenc# of the closing %osition an! +oe+ents oer ti+e %erio!s" notabl# for the calculation accurac# of the State+ent of Cash ;lo/s an! the State+ent of Changes in 8Luit#. A,tomatic a-2 a-,al @o,r-al E-tries Auto+atic an! +anual journal entries +ust be boo(e! on +oe+ent flo/s. 5he i+%act on the closing balance @flo/ F00A is calculate! auto+aticall#. 5his calculation is !efine! in one of three %lacesI − 'n the eli+ination an! auto+atic a!just+ents rules @9Force closing: o%tionA for all auto+atic entries that i+%act BS +oe+ent flo/s − 'n the journal.lgf logic script for +anual journal entries @see A%%en!i4 BA − 'n the co%#o%ening.lgf logic scri%t for +anual journal entries fro+ the %reious #ear @see A%%en!i4 CA a-,al @o,r-al E-tries a-2 the $CC closi-g 6lo9 Because the i+%act on the closing balance is auto+aticall# calculate!" the closing flo/ @flow ;EEA shoul! not be boo(e! in +anual journal entries. Remi-2er< #pe-i-g Data i- I-p,t 6orms A !ifferent logic a%%lies to !ata in%ut in for+s since the closing balance is not calculate!. 'nstea! it is use! to calculate the ariation flo/ @;1CA as !escribe! in Q 1.1.1.2 %age F in this conte4t. '.+.4. Bala-ce2 E-tries 'n the consoli!ation" +anual an! auto+atic journal entries are boo(e! b# 835'5< accor!ing to a contributie a%%roach" not in a!just+ent or eli+ination entities. 5his is because it +ust be %ossible to retriee the net contribution to the grou% consoli!ate! figures b# entit#. 5his %rinci%le also facilitates the au!it trail since the origin entit# of the eli+ination is i!entifie!. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 22 • &anual an! auto+atic journal entries +ust be balance! b# )ntit an! Audit I!. • 8li+ination accounts are create! in the Balance Sheet an! the 'nco+e State+ent. 5he# are use! as off0setting accounts to balance eli+ination %ostings b# entit#. Auto+atic journal entries /ill %o%ulate these eli+ination accounts as !efine! in the elimination and adjustment rules. 't is also %ossible to use these eli+ination accounts for +anual entries. '.+.'. Usi-g the Brea72o9- .y Part-er 5he accounts for /hich interco+%an# alues are %ossible @propert 'S'358$CO S <A are use! as follo/I • Co+%an# !ata is re%orte! globall# @'nterco S 'J3O38A an! bro(en !o/n b# %artner in !e!icate! in%ut for+s • 8li+ination entries are boo(e! both b# %artner an! globall# @'nterco S 'J3O38A. 5his is !one b# using the NForce intco member6 option in the eli+ination an! a!just+ents rules As a conseLuence the !etail of eli+inations b# %artner is aailable for au!it trail %ur%oses. 5his logic is illustrate! in the table belo/. Auto+atic a!just+ent rules are base! on 5ethod1based 5ulipliers rules in /hich the Interco +etho!" in a!!ition to the entit# +etho! is chec(e!. As a conseLuence" no eli+ination /ill occur /hen the '358$CO +e+ber corres%on!s to a non0consoli!ate! entit#. 'nterco+%an# accounts are collecte! b# .rou% %artner so that it is %ossible to test the consoli!ation %eri+eter status of the %artner in the eli+ination rules to trigger the eli+ination accor!ingl#. 5he brea(!o/n b# %artner is +aintaine! in eli+ination entries for au!it trail %ur%oses" since it is then %ossible to e4%lain the total a+ount eli+inate!. Design Documentation 23 8li+ination b# %artner an! on the gran! total Account total -Input data- Ent 1 Revenues F99 I_NONE INPUT 50 Partner breakdown (1) -Input data- Ent 1 Revenues F99 I_Ent 2 INPUT 40 Partner breakdown 2 -Input data- Ent 1 Revenues F99 I_Ent 3 INPUT 10 … … Elimination by partner Ent 1 Revenues F99 I_Ent2 ELIM10 -40 Elimination by partner Ent 1 Revenues F99 I_Ent3 ELIM10 -10 Total Elimination Ent 1 Revenues F99 I_NONE ELIM10 -50 Comment ENTITY ACCOUNT FLOW Amount INTERCO AUDIT ID … '.+.". A-alysis o6 Cha-ges 6rom Local to Co-soli2ate2 %al,e 5he %re%aration an! ali!ation of consoli!ate! figures" inclu!ing anal#sis of changes fro+ local to consoli!ate! alues" is facilitate! than(s to a business classification of all consoli!ation ste%s an! calculations @+anual entries" a%%ortion+ents" auto+atic eli+inationsMA. A !e!icate! au!it0t#%e dimension calle! audit I! is !efine! to classif# !ata fro+ local to consoli!ate! figures. 5his !i+ension is !efine! /ith a hierarch# in or!er to !istinguish the !ifferent +ain transfor+ation ste%s of a+ounts in the consoli!ation %rocess an! to retriee these ste%s in re%orts. '.+.*. Le0eragi-g the B,ilt>i- Scope Cha-ge Calc,latio- 8ffect of %eri+eter changes on consoli!ate! state+ents +ust be !isclose! on s%ecific flo/s !e%en!ing on the t#%e of the sco%e change @inco+ing" rate or +etho! change"MA. ;or Balance Sheet accounts" )limination and Adjustment "ules base! on the current %eri+eter rates @financial interest rate an! consoli!ation rateA a%%l# not onl# to +oe+ent flo/s but also to the o%ening balance ;00. 5his is because the consoli!ation engine is able to auto+aticall# i!entif# an! calculate the effect !ue to changes in the %eri+eter b# the !ifference bet/een the carr# for/ar! of the auto+atic entr# fro+ the %rior #ear0en! %erio! on the one han!" an! the ne/l# calculate! auto+atic entr# eli+ination for the o%ening balance F// on the other han!. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 24 84a+%leI Dece+ber" Prior <ear Current 5i+e Perio! PO)3 0.G 0.E Au!it 'Ds M ;EE0 Closing ;000 O%ening Sco%e ariationW ;EE0 Closing '3P-5 H 'n%ut !ata M 100 100 100 ADJ444 H Auto+atic a!just+ent base! on PO)3 M G0 G0 10 E0 W 5he sco%e ariation flo/ +e+ber %o%ulate! b# the consoli!ation engine !e%en!s on the status of the entit# an!,or the %artner @'ntercoA in the consoli!ation %eri+eterI inco+ing" leaing" change in consoli!ation rate or change in consoli!ation +etho!. '.1. a-,al @o,r-al E-tries Seeral eli+ination entries or consoli!ation entries are boo(e! ia +anual journal entries in the starter (itI eli+ination of internal %roisions" eli+ination of internal gain , loss on !is%osal of assets" reclassification of the inco+ing %osition of Other Co+%rehensie 'nco+e co+%onents in retaine! earnings for inco+ing entities. &oreoer it is %ossible to a!just the auto+atic entries /ith +anual journal entries if nee!e!. a-,al @o,r-al E-try A,2it IDs &anual journal entries can be +anuall# boo(e! using %re!efine! au!it 'Ds /ith %ro%ert# !A&A%"C*&6P) S &. So+e au!it 'Ds hae been create! to allo/ the consoli!ation +anager to boo( entries /hich are not auto+ate! in the starter (it. Other au!it 'Ds are also aailable to co+%le+ent auto+atic entries. ;or instance" the +anual journal entr#0t#%e au!it 'Ds D'911 an! D'921 are aailable in a!!ition to the auto+atic au!it 'Ds D'910 an! D'920. a-,al @o,r-al E-try Relate2 Calc,latio-s 5he journal2lgf script logic calculates the follo/ing %ossible i+%acts relate! to +anual journal entriesI − BS flo/s carr# oer to the F000Closing balance flo/ − Carr# oer of the PR: i+%act to the retaine! earnings @;10A 5he Dournal.lgf scri%t is !escribe! in Q B %age CG. Design Documentation 25 Acco,-t !otal a-2 I-terco Brea72o9- i- a-,al @o,r-al E-tries 'f a +anual journal entr# shoul! i+%act both the account total an! one or seeral grou% %artners" one journal ro/ +ust be !efine! to recor! the i+%act on 'J3O38 in a!!ition to the journal ro/@sA recor!ing the i+%act on the grou% %artner@sA. Acco,-t Property 6or the Elimi-atio- o6 Pro0isio-s 5he P$O9044 alues hae been create! for the 5<P8:'& %ro%ert# an! assigne! to the a%%ro%riate accounts to facilitate the setu% of a!!itional rules for the eli+ination of internal %roisions. =o/eer" these rules are not i+%le+ente! in the current release of the starter (it. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 26 '.4. A,tomatic E-tries '.4.+. Reciprocal Acco,-t Elimi-atio-s I-tercompa-y Acco,-ts )ithin the chart of accounts" onl# so+e accounts are o%en for recor!ing interco+%an# transactions. =o/eer" these accounts are not !e!icate! solel# to interco+%an# o%erations" transactions /ith thir! %arties +a# also be recor!e!. Seeral grou%s of reci%rocal accounts are !efine!. 'n the Balance SheetI − $eceiables an! %a#ables" non0current − ;inancial assets an! liabilities" non0current − $eceiables an! %a#ables" current − ;inancial assets an! liabilities" current 'n the 'nco+e State+entI − .ross %rofit @$eenues , Cost of salesA − O%erating %rofit @Other inco+e , Other o%erating e4%ensesA − ;inancial result @'nterests an! other financial inco+e,e4%ensesA Elimi-atio-s 5he follo/ing auto+atic interco+%an# eli+inations are !efine!I − $eenues , Cost of sales − Other inco+e , Other e4%enses − ;inance inco+e , ;inance e4%enses − 5ra!e R other receiables , %a#ables − 3on0current receiables , %a#ables − ;inancial assets , liabilities 'nterco+%an# reci%rocal accounts are eli+inate! against !e!icate! eli+ination accounts @clearing accountsA. As a conseLuence" these eli+ination accounts sho/ the interco+%an# +is+atch at grou% leel. 'nterco+%an# a+ounts are eli+inate! bet/een entities consoli!ate! using full or %ro%ortional +etho!s" /eighte! /ith the lo/est consoli!ation rate bet/een both co+%anies. Design Documentation 27 I-tercompa-y Acco,-ts 5o facilitate the +aintenance of the chart of accounts an! business rules" interco+%an# eli+inations are !efine! using the follo/ing account !i+ension propertiesI − I%IN&)"C$I %ro%ert# use! to sho/ in in%ut for+s that one account can be use! in the interco+%an# in%ut for+. 5his O'CP in!icator is !is%la#e! in the Balance in%ut for+ for PR: accounts" an! in the flo/ anal#sis in%ut for+s for B,S accounts. − &6P)LI5I %ro%ert# use! to select accounts in the consoli!ation rules 84a+%leI 5he accounts O$eenuesP an! OCost of salesP hae the %ro%ert# 5<P8:'& S SJ'C'S − )LI5ACCI %ro%ert# use! to !efine the res%ectie eli+ination account to be %o%ulate! as counter%art of the journal entr# @see B.1.1A. 84a+%leI 5he account OP11EC:P is !efine! in the %ro%ert# 8:'&ACC for the accounts O$eenuesP an! OCost of salesP 5he eli+ination accounts are %art of the account hierarch# an! conseLuentl# inclu!e! in consoli!ate! state+ents. − At grou% leel" eli+ination accounts sho/ the interco+%an# !ifferences" resulting fro+ a +is+atch in the interco+%an# a+ount re%orte! b# entities − At entit# leel" eli+ination accounts balance the eli+ination %ostings B,si-ess R,les 'nterco+%an# eli+inations are %erfor+e! using the Consoli!ation &onitor" /hich triggers the )liminations and Adjustments rules co+bine! /ith the 5ethod1based 5ultipliers. ;or interco+%an# eli+inations" seeral 5ethod1based 5ultipliers are !efine!I − BA1JBA1J&1I consoli!ation +etho!s for the 835'5< an! '358$CO !i+ensions areI =ol!ing @111A" ;ull @100A" Pro%ortional @C0A" :eaing co+%anies @GGG" GC0A" an! &erge! co+%anies @FFF" FC0A − BA1JS&1J&1 an! S&1JBA1J&1I rules !efining /hen the co+%an# or the interco is +erge! − BA1JSD1J&1 an! SD1JBA1J&1I rules !efining /hen the co+%an# or the interco is leaing 5hese consoli!ation rules are !efine! /ith consolidation formula /hich refers to the lo/est rate bet/een the entit#6s consoli!ation rate an! the %artner6s consoli!ation rate at closing. 84%lanations regar!ing the na+ing conention of the &etho!0base! +ulti%liers are aailable in a%%en!i4 @see C.G 0 3a+ing Conention for &etho!0base! &ulti%liers for Consoli!ation $ulesA 5he 'C8:'& )liminations and Adjustment rule recor!s interco+%an# eli+inations on the au!it 'D 8:'&10. 5he corres%on!ing processing rows of the 'C8:'& )limination and Adjustment rules !efine the follo/ing eli+inationsI Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 28 So,rce acco,-t So,rce 6lo9 Desti-atio- 6lo9 R,le I2 Applies to SJ'CBS All flo/ inclu!e! in 83D Sa+e as the source flo/ BA1JBA1J&1 ;ull an! %ro%ortional +etho!s SJ'CBS ;EE0Closing ;EG0Outgoing units BA1JSD1J&1 an! SD1JBA1J&1 Dieste! co+%anies SJ'CBS ;EE0Closing ;F00'nternal +ergers BA1JS&1J&1 an! S&1JBA1J&1 &erge! co+%anies SJ'C'S P:EE BA1JBA1J&1 'S $orm,la 6or the Lo9est Co-soli2atio- Rate 5he for+ula use! in the starter (it for returning the lo/est consoli!ation rate bet/een the 8ntit# an! the 'nterco+%an# !efine! in the consoli!ation %eri+eter is &'3@PCO3"'JPCO3A . A,tomatic I-terco Elimi-atio-< EDample 6or !ra2e Recei0a.les a-2 Paya.les + SELLER Company (S) A2210 Trade receivables (Assets) L239CL Elimination account O Interco B 130 Interco B 130 O O Interco B 130 BUYER Company (B) BUYER L2310 Current trade payables (Liabilities) L239CL Elimination account O Interco S 120 Interco S 120 O Interco S 120 O O Input amounts O Elimination at the seller O Elimination at the buyer 1 5o (ee% the e4a+%le eas# to un!erstan!" onl# the journal entr# b# grou% %artner is sho/n @O an! OA. As e4%laine! in A.B.1.B" the auto+atic journal entr# is also %oste! against the 'J3O38 +e+ber. Design Documentation 29 '.4.1. Elimi-atio- o6 Di0i2e-2s Dii!en!s %ai! an! receie! are auto+aticall# eli+inate! base! on the %a#er6s !eclaration. 5he eli+ination journal entr# is %oste! in the receier6s accounts @PR: an! eLuit#A. 5he i+%act on reseres , net inco+e is share! bet/een the grou% an! non0controlling interests" base! on the o/nershi% rate of the receier co+%an#. 'n case of !ifferences @for instance !ue to e4change ratesA" an auto+atic journal entr# reclassifies this !ifference to flo/ ;G0 of the receier6s eLuit# @account 812100$etaine! earningsA. A +anual a!just+ent journal entr# can be %oste! if the !ifference is other than an e4change rate !ifference @if for instance !eclarations fro+ the %a#er an! the receier !o not +atchA. Dii!en!s are eli+inate! base! on the !etail re%orte! b# the %a#ing co+%an#. An a!!itional !etail" ho/eer" is collecte! in the receier6s %ac(age to allo/ reconciliation of !ii!en!s. 'n the eLuit#" !ii!en!s %ai! can be re%orte! b# the subsi!iar# on accounts Share %re+iu+ an! $etaine! 8arnings @/ith no %artner !etailA on flo/ ;020Dii!en!s. An a!!itional in%ut b# %artner is reLuire! on a single statistical account H *81210 0 on flo/ ;02. 5he i+%act in grou% reseres or non0controlling reseres @accounts 81210 an! 82010 res%ectiel#A is recor!e! b# the D'9 )limination and adjustment "ule2 5he net result i+%act is therefore also %oste! in the 'nco+e State+ent @P21B0A. Since the inco+e of the %erio! an! the retaine! earnings are recor!e! on the sa+e account @81210A" the eli+ination of !ii!en!s results in a reclassification fro+ flo/ ;020Dii!en!s to ;1003et Profit of the %erio!. $oreig- C,rre-cy Co-0ersio- On the %a#er6s si!e" the flo/ ;02 is conerte! using the !e!icate! rate t#%e" !I7" @see "ate dimension in the "A&)% modelA. 5his rate can be %o%ulate! in the rate table" an! shoul! be eLual to the %a#er6s currenc# e4change rate at the !ate /hen the !ii!en! /as agree! b# at the annual general +eeting. -sing this rate /ill +a(e the reconciliation of !ii!en!s %ai!,receie! easier" es%eciall# /hen the receier6s re%orting currenc# is the sa+e as the consoli!ation currenc#. De!icate! au!it 'Ds" D'920 @autoA an! D'921 @+anual journal entr#A" hae been create! to %ost an# %ossible conersion !ifference. 5he !I7C/ au!it 'D is auto+aticall# %o%ulate! at the receiers b# the !I7C&A )limination and Adjustment rule. 5he %oste! !ifference is calculate! b# using both the receier6s an! the %a#er6s conerte! !eclarations an! using the 9%wap entit1Intco: option for the %a#er so that the a+ount is %o%ulate! at the receiers as /ell. Di0i2e-2s Pai2 .y a- I-comi-g E-tity Dii!en!s %ai! b# an inco+ing entit# are reclassifie! fro+ the !ii!en! i+%act to the sco%e change effect in or!er to %roi!e the consoli!ation +anager /ith an accurate alue of the inco+ing eLuit#. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 30 'n or!er to reclassif# !ii!en!s %ai! b# inco+ing entities !uring the consoli!ation %rocess" the follo/ing )limination and Adjustment "ules hae been create!I − ;9A10I in case of inco+ing %a#ers" this rule reclassifies the total !ii!en! !istribution i+%act re%orte! on flo/ ;02 onto flo/ ;01. 5he counter%art on the asset si!e is the account A2210HCash on han!" /hose +oe+ents are reclassifie! fro+ ;1C to ;01. ConseLuentl# the inco+ing flo/ ;01 re+ains balance!. 'n or!er to select !ata onl# fro+ inco+ing entities" the $wnership filter colu+n is use! to test that the %rior %erio! consoli!ation rate eLuals 0 @PPCO3 S 0A. &oreoer onl# the account total is selecte! so that the reclassification is not %erfor+e! for the brea(!o/n b# grou% interco+%an# @'358$CO S 'J3O38A. − D'9J'3CPI in case of inco+ing %a#ers" this rule reclassifies the !ii!en! eli+ination that the D'9 rule triggers b# !efault for all %a#ers on flo/ ;02 onto flo/ ;01" /hateer the sco%e status. 5he !estination au!it 'D is therefore the sa+e as /ith the D'9 rule" na+el# D'910. 'n or!er to select !ata onl# fro+ inco+ing entities" the $wnership filter colu+n is use! to test that the %rior %erio! consoli!ation rate eLuals 0 @PPCO3 S 0A. '.4.4. Elimi-atio- o6 I-0estme-ts 5he internal inest+ents are auto+aticall# eli+inate! against eLuit# !uring the consoli!ation. 5he starter (it su%%orts the auto+atic calculation of non0controlling interests in the inest+ents /hen the o/ner entit# is not 100Y o/ne! b# the grou%. 'nest+ents in consoli!ate! subsi!iaries" joint entures or associates are collecte! an! !etaile! b# o/ne! entities" using the 'nterco !i+ension. 5he auto+atic eli+ination of grou% inest+ents is triggere! b# the IN7 )limination and Adjustment "ule. 't is %oste! on a !e!icate! au!it 'D" IN7,/0 8li+ination of inest+ents. Disti-g,ishi-g the Impact o- $lo9s .y #peratio- !ype − 5he case of %urchase or !is%osal of inest+ents is !ealt /ith s%ecificall# b# selecting ;20 an! ;10 res%ectiel# an! !efining ;00 as the !estination flo/. As a conseLuence" ;01" ;E2 or ;EG is i+%acte! !e%en!ing on /hether the hel! entit# enters the sco%e" re+ains in the sco%e or leaes the sco%e − ;or other flo/s the !estination is i!entical to the source @;B0" ;C0" ;F0" ;1CA − Processing ro/s are also !efine! on the o%ening flo/ ;00 in or!er to calculate %ossible changes in the consoli!ation rates or financial interest rates @cf. B.1.2 %age 21A. Bala-ce2 E-tries at Both the #9-er Compa-y a-2 the ?el2 Compa-y 5he eli+ination journal entr# i+%acts both the o/ner an! the hel! co+%aniesI − O/ner co+%an# @%arentAI the inest+ent alues are eli+inate! against the eli+ination account A1G1OC @o/ner co+%an#A at the consoli!ation rate @PCO3A. Design Documentation 31 − =el! co+%an# @subsi!iar#AI the rule for eli+ination of inest+ents triggers an entr# on the grou% retaine! earnings against the eli+ination account A1G1=C @hel! co+%an#A. 'n case there are in!irect non0controlling interests in the o/ner co+%an#" the i+%act on the retaine! earnings is s%lit bet/een grou% an! non0 controlling interest" base! on the grou%6s share of the o/ner" an! therefore calculate! res%ectiel# /ith the PO)3 an! PCO30PO)3 for+ula use! in the A<JA<J82 &etho!0base! &ulti%liers. A,tomatic Elimi-atio- o6 I-0estme-ts Owner Company (O) (owned at 80% by the group) A1810 Investment in subs., JV & Assoc. A1810C Elim of investments - Owner comp Flow=F20 Flow=F20 O Interco H 100 100 O O Interco H 100 Held Company (H) (incoming, owned at 100% by O) E1610 Retained earnings (Group) Flow=F01 O Interco O 80 A181HC Elim of investment - Held comp (shares) Flow=F01 E2010 NCI - Reserves & Ret. earnings Interco O 100 O Flow=F01 O Interco O 20 O Input amounts O Elimination of the H investment at O O Counterpart of the H investment elimination at H Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 32 '.4.'. Goo29ill Recog-itio- .oo!/ill alues are !eclare! centrall# ia a one0si!e! journal entr# %oste! on an off0 balance account at the hel! co+%an#. Base! on this infor+ation" an auto+atic journal entr# i+%acts the goo!/ill @assetsA against the eLuit#. 'f nee!e!" the i+%act on the eLuit# is s%lit bet/een the grou% an! non0 controlling interests base! on the grou%6s share in the o/ner co+%an#. 't is %ossible to a%%l# the full goo!/ill +etho!. 'n the eent of a bargain %urchase" the off0balance journal entr# triggers an auto+atic %osting of the gain to the PR:. Goo29ill Co-0ersio- 'n accor!ance /ith ';$S" the goo!/ill is accounte! for using the hel! co+%an#6s currenc#. Due to this %rinci%le" the alue of the goo!/ill +a# ar# oer ti+e for subsi!iaries re%orting in a foreign currenc#. 5his ariation of the goo!/ill6s conerte! alue" ho/eer" shoul! neer i+%act the retaine! earnings but the foreign currenc# translation resere. Usi-g #66>Bala-ce Acco,-ts .oo!/ill @or bargain %urchaseA is !eclare! b# a +anual journal entr# %oste! on one of the follo/ing accountsI − *A1100 0 Declare! bargain %urchase anal#7e! b# o/ner − *A11003C' 0 Declare! bargain %urchase attributable to 3C' − *A1110 0 Declare! .oo!/ill anal#7e! b# o/ner @.rossA − *A11103C' 0 Declare! goo!/ill attributable to 3C'" .ross − *A11120 Declare! .oo!/ill anal#7e! b# o/ner @'+%air+entA − *A11123C' 0 Declare! goo!/ill attributable to 3C'" '+%air. 5his single0si!e! journal entr# is %oste! on a !e!icate! au!it 'D" .)010Disclosure of goo!/ill an! bargain %urchase H &an. O/ner an! hel! co+%an# are i!entifie! as follo/sI o 5he off0balance journal entr# is %oste! in the account of the hel! co+%an#" i!entifie! b# the 8ntit# !i+ension o 5he interco+%an# !etail %roi!e! using the 'nterco !i+ension corres%on!s to the o/ner co+%an# 5he journal entr# +ust be boo(e! in local currenc#" :C. )hen a%%l#ing the full goo!/ill +etho!" a journal entr# shoul! be %oste! on one of the 1 accounts /ith the O3C'P suffi4 liste! aboe in or!er to boo( the share of bargain %urchase" gross goo!/ill" or goo!/ill i+%air+ent attributable to the non0controlling interests. A,tomatic @o,r-al E-tries Base! on the infor+ation entere! in the technical accounts" auto+atic journal entries are %oste! at the hel! co+%an# using the 8.,/ an! F8.,/ au!it 'Ds. 5/o t#%es of )limination and adjustment "ules are triggere! for one consoli!ation eentI Design Documentation 33 • 8.I .oo!/ill boo(ing H O/ner co+%an#6s share 5his is the co++on case for subsi!iaries consoli!ate! using the full or %ro%ortionate +etho!. 5he goo!/ill is boo(e! on the account A11100.oo!/ill against the account 812100$etaine! earnings. 'f there are non0controlling interests in the o/ner co+%an#" the i+%act on the eLuit# is share! bet/een grou% @accountI 81210A an! non0controlling interests @accountI 82010A. So+e of the %rocessing ro/s han!le the case of entities consoli!ate! /ith the eLuit# +etho!. 'n that case" the goo!/ill is not %oste! to the account A11100.oo!/ill" but to the account A1C000'nest+ents accounte! for using eLuit# +etho!. 5he 5ethod1based 5ultipliers use! in the goo!/ill a!just+ent rules refer to the closing consoli!ation rates of the 'nterco co+%an# @I*PC$N and I*P$.N formulaA /hich re%resents the o/ner co+%an# in this case" in accor!ance /ith the reLuire+ents. • F8.I .oo!/ill boo(ing H 3on0controlling interests @full goo!/ill +etho!A 5his auto+atic entr# is triggere! if #ou hae !eclare! goo!/ill in the *A11103C' account /ith a brea(!o/n b# 'nterco @o/ner co+%an#A. 't i+%acts the goo!/ill @accountI A1110A against the non0controlling interests @accountI 82010A. 5he 5ethod1based 5ultipliers use! in the full goo!/ill a!just+ent rules si+%l# a%%l# factor 1 to the selecte! a+ount since the a+ount !eclare! in the journal entr# is full# attributable to the non0controlling interests in this case. Goo29ill Co-0ersio- 5o co+%l# /ith the reLuire+ent regar!ing goo!/ill conersion" the .)C5A and ;.)C5A )limination and Adjustment "ules boo( the currenc# translation a!just+ent b# selecting the ;G00Currenc# translation a!just+ent flo/ of the off0balance accounts *A1110" *A11103C'" *A1112" an! *A11123C'. 3ote that the a+ounts store! on these accounts are recor!e! in the hel! co+%an#6s currenc#" so the flo/ ;G0 is auto+aticall# %oste! b# the conersion rules. &wo dedicated audit I!sD .)200Currenc# translation a!just. on goo!/ill H Auto and ;.)20 0Currenc# translation a!just. on 3C' goo!/ill 0Auto have been created for the purpose of handling goodwill conversion2 Bargai- P,rchase 'f a business co+bination causes a bargain %urchase" the !e!icate! account *A11000 Declare! bargain %urchase anal#7e! b# o/ner +ust be use! to !eclare the corres%on!ing gain. 5he auto+atic journal entr# i+%acts the PR: on account P12B00.ain on bargain %urchase or P10000Share of %rofit @lossA of assoc. R D9 in case the hel! co+%an# is consoli!ate! using the eLuit# +etho!. 't is %ossible to chec( that the ;010'nco+ing units flo/ balances for this entr#" b# retrieing the A11EC:0Clearing account0Bargain %urchase account @flo/ ;2C balances flo/ ;01A. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 34 .oo!/ill $ecognition Held Company (H) Owner entity O is owned at 80% by the group (owned by O) Held entity H is owned at less than 100% by the group: the full goodwill method can therefore be applied XA1310 Declared GW XA1310NCI Declared GW attrib. NCI Flow = F01 Flow = F01 O Interco O 100 O Interco O 50 A1310 Goodwill E1610 Retained earnings Flow = F01 Flow = F01 O 100 80 O O 50 E2010 NCI - Reserves & Ret. Earnings Flow = F01 20 O 50 O O Amounts from manual entries on the off-balance accounts O Automatic journal entry, including split group/NCI O Automatic journal entry, goodwill attributable to NCI '.4.". Co-soli2ate2 E3,ity Calc,latio- 5he eLuit# of consoli!ate! co+%anies are s%lit bet/een the grou% an! non0controlling interests accor!ing to the follo/ing %rinci%leI • 5he accounts 811100'ssue! ca%ital an! 812100Share %re+iu+ are transferre! to the grou% retaine! earnings an! retaine! earnings of non0controlling interests for an# entit# e4ce%t the %arent co+%an# of the grou% • ;or other eLuit# accounts" the grou% share is +aintaine! on the original account" an! the non0controlling interest share is calculate! on the relate! non0controlling interests account. 5he relationshi% bet/een source eLuit# accounts an! non0controlling interests eLuit# accounts is su++ari7e! in the table belo/I Design Documentation 35 Gro,p e3,ity acco,-t Aselectio-B NCI e3,ity acco,-t A2esti-atio-B 81110 'ssue! ca%ital 82010 3C' 0 reseres an! retaine! earnings 81210 Share %re+iu+ 82010 3C' 0 reseres an! retaine! earnings 81110 5reasur# shares 820F0 3C' 0 5reasur# shares 81C10 $ealuation sur%lus" before ta4 82020 3C' 0 $ealuation sur%lus before ta4 81C11 'nco+e ta4 on realuation sur%lus 82021 3C' 0 'nco+e ta4 on realuation sur%lus 81C20 Actuarial gains an! losses" before ta4 @sus%ense accountA 82010 3C' 0 Actuarial gains an! losses" before ta4 @sus%ense accA 81C21 'nco+e ta4 on actuarial gains an! losses @sus%ense acc.A 82011 3C' 0 'nco+e ta4 on actuarial gains an! losses @sus%ense acc.A 81CB0 =e!ging resere" before ta4 820B0 3C' 0 =e!ging resere" before ta4 81CB1 'nco+e ta4 on he!ging resere 820B1 3C' 0 'nco+e ta4 on he!ging resere 81CC0 ;air alue resere" before ta4 820C0 3C' 0 ;air alue resere" before ta4 81CC1 'nco+e ta4 on fair alue resere 820C1 3C' 0 'nco+e ta4 on fair alue resere 81C20 ;oreign currenc# translation resere" before ta4 82020 3C' 0 ;oreign currenc# translation resere" before ta4 81C21 'nco+e ta4 on foreign currenc# translation resere 82021 3C' 0 'nco+e ta4 on foreign currenc# translation resere 81CF0 8Luit# co+%onent of co+%oun! financial instru+ents 820G0 3C' 0 co+%oun! financ. instru+ents 81210 $etaine! earnings 82010 3C' 0 reseres an! retaine! earnings 8Luit# consoli!ation %ostings +entione! aboe are triggere! b# the follo/ing )liminations and Adjustments rulesI • C$N%*)= a!just+ent rule o 5his rule selects both the issue! ca%ital an! share %re+iu+ accounts ia the SJ8?-0 .01 &6P)LI5 account %ro%ert#. 5hese accounts are cancelle! out @see !estination 9ALL: accountA against the grou% retaine! earnings an! non0controlling interests retaine! earnings" accounts 81210 an! 82010 use! as !estination in the !estination group account an! !estination minorit account colu+ns. o ;or that %ur%ose the ST4V1JEEJ82 5ethod1based 5ultipliers are use! here so that the original account is co+%letel# cancelle! out @PC$N formulaA an! the grou% retaine! earnings an! non0controlling interests retaine! earnings %o%ulate! /ith the grou% share @P$.NA an! non0controlling interests share @PC$N1P$.NA res%ectiel#. o 5his entr# is boo(e! on the C$N%,/ au!it 'D. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 36 • NCI*INP'&-- E NCI*A!4-- a!just+ent rules o 5hese eli+inations an! a!just+ents rules select eLuit# accounts other than issue! ca%ital an! share %re+iu+ ia the %*)='18/CEFEGE0 &6P)LI5 %ro%ert# alues. 5hese %ro%ert# alues are (e%t !istinct in or!er to !istinguish bet/een eLuit# accounts that are %art of the Other Co+%rehensie 'nco+e @OC'A @see 3C'J;9A" OC' for 'nco+ing 8ntities belo/A" retaine! earnings" an! other eLuit# account e4clu!e! fro+ OC'. o =ere the non0controlling interests share is subtracte! fro+ the original account against the res%ectie non0controlling interests account" b# using the %A,*00*)F 5ethod1based 5ultiplier /hich a%%lies the PC$N1P$.N formula 0 that is" the non0 controlling interests share 0 both to the original account !efine! in the !estination 9ALL: account colu+n @!efault factor S 01A an! to the !estination minorit account colu+n @!efault factor S U1A. o 8ach res%ectie non0controlling interests account is !#na+icall# %o%ulate! !e%en!ing on the source eLuit# account b# using the P"$P?3 (e#/or! a%%lie! to the )LI5ACC %ro%ert# in the !estination minorit account colu+n. 5his is because each eLuit# account has been associate! /ith its res%ectie non0controlling interests account ia this account %ro%ert#. o 5he NCI*INP'&-- an! NCI*A!4-- are built on the sa+e %rinci%le an! inclu!e the sa+e !etail ro/s. 5he# si+%l# %o%ulate !istinct !estination au!it 'Ds !e%en!ing on the source au!it 'D" hence the au!it 'D restriction ia the %ource data source colu+n in the auto+atic a!just+ent rule. 5hese entries a%%l# to all consoli!ation +etho!s e4ce%t the hol!ing @+ain co+%an#A" that is not onl# to full an! %ro%ortionate but also to the eLuit# +etho! @see belo/A. E3,ity etho2 8Luit# alues trigger an u%!ate of the inest+ent alue against the consoli!ate! reseres. 5he net inco+e of the %erio! also u%!ates the inest+ent alues against a !e!icate! account" P10001Share of %rofit @lossA of assoc. R D9 accounte! for using 8&" in the PR:. ;ollo/ing the cancellation of all accounts for entities consoli!ate! /ith the eLuit# +etho! b# the &5=J8?-'5< eli+ination an! a!just+ent rule" the eLuit# alue eLuals 0 @see 1.1 0 Consoli!ation &etho!s an! $atesA. 5he %ur%ose of the 5&+*)='I&6CC )limination and Adjustment rule is t/ofol!I − $estore the conerte! alue of eLuit# accounts against the account A1C000 'nest+ents accounte! for using eLuit# +etho!" therefore the &5=J8?-'5<2 auto+atic a!just+ent rule selects all leaf0leel accounts un!er the %arent account 81EE518Luit# attributable to o/ners of %arent. − Boo( the net result of the entit# consoli!ate! /ith the eLuit# +etho! in the PR: on the account P1000. 5his is !one b# selecting the flo/ ;10 of the retaine! earnings account @5<P8:'& S SJ8?-0.0EA. Design Documentation 37 5he )A*00*)G method1based multiplier a%%lies the PC$N formula to the !estination 9ALL: account colu+n in or!er both for the eLuit# accounts to be restore! an! the PR: account to be boo(e! at the entit#6s consoli!ation rate. Since the alue of the eLuit# accounts is restore!" the grou% eLuit# an! the calculation of the non0controlling interests for entities consoli!ate! /ith the eLuit# accounts can follo/ the general %rinci%le e4%laine! here aboe. E3,ity o6 I-comi-g U-its ;or entities entering the consoli!ation sco%e" the inco+ing alue of the Other Co+%rehensie 'nco+e co+%onents are reclassifie! in grou% an! non0controlling interests retaine! earnings accor!ing to the financial interest rate. 5he reclassification of OC' accounts is boo(e! b# i+%acting the ;01 flo/ ia a +anual journal entr# on the ;9A11 au!it 'D for releant entities on a 100Y basis. 5he NCI*F7A elimination and a adjustment rule boo(s %ossible non0controlling interests on the &D8 reclassification a+ount b# subtracting the non0controlling interests a+ount calculate! ia the PC$N1P$.N formula of the %A,*00*)F method1based multiplier. As a conseLuence this calculation %rinci%le of the non0controlling interests is consistent /ith the non0controlling interests calculation %rinci%le of the NCI*INP'&-- an! NCI*A!4-- a!just+ent rules" an! both non0controlling interests calculations are s#++etrical" as illustrate! belo/I $eclassification of OC' for 'nco+ing 8ntities Input data Ent 1 E1510 - Revaluation surplus, before tax F01 I_NONE INPUT 100 AJE : NCI on Input data Ent 1 E1510 F01 I_NONE NCI_INPUT -20 MJE: OCI reclassification Ent 1 E1510 F01 I_NONE FVA11 -100 AJE : NCI on OCI reclassification via MJE Ent1 E1510 F01 I_NONE NCI_INPUT 20 Comment ENTITY ACCOUNT FLOW Amount INTERCO AUDIT ID … 'n or!er to auto+ate the reclassification entr# in the starter (it" it /oul! be necessar# to i!entif# not onl# the entities /hich are entering the consoli!ation sco%e" but also the entities that hae entere! the consoli!ation sco%e in the %ast on a %rior ti+e %erio!. 5his is notabl# because the auto+atic entr# +ust be boo(e! on the o%ening %osition to calculate the effect of sco%e changes consistentl# as e4%laine! in Q B.1.2" :eeraging the Built0in Sco%e Change Calculation. =o/eer" there is no eas# /a# to !#na+icall# (ee% trac( of an entit# /hich enters the consoli!ation sco%e in a %rior ti+e %erio!. As a conseLuence this reclassification is boo(e! +anuall#. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 38 '.4.*. C,rre-cy !ra-slatio- A2/,stme-t AC!AB E3,ity a-2 Net I-come 5he currenc# translation !ifferences resulting fro+ the currenc# conersion of eLuit# accounts +ust be a!juste! to sho/ grou% interests an! non0controlling interests. I-0estme-ts 5he currenc# translation !ifference on inest+ents is transferre! to the conersion reseres of the hel! co+%an#. C!A o- E3,ity ;ollo/ing the conersion %rocess" the first %art of the currenc# translation a!just+ents @C5AA relate! to eLuit# accounts has been %rocesse! since conersion reseres hae been recor!e! on a 100Y basis on the original in%ut an! local leel a!just+ent au!it 'Ds @see A. 1.1 0 ;oreign Currenc# ConersionA. 5herefore the secon! %art of the C5A %rocess is triggere! b# the 3C'0%refi4e! elimination and adjustments rules /hich are +ore generall# inten!e! to calculate non0controlling interests for eLuit# accountsI 3C'J'3P-5" 3C'J'3P-510" 3C'JADDE0M. @see. A. B.1.C 0 Consoli!ate! 8Luit# CalculationA As /ith other eLuit# accounts" the 81C20 is selecte! !#na+icall# b# these rules ia the &6P)LI5 account propert @%*)='18/F alueA. =o/eer onl# the ;000O%ening flo/ an! the ;G00;oreign e4change gain,loss flo/ are releant for this account. So,rce acco,-ts Desti-atio- Gro,p acco,-ts No->co-trolli-g i-terest acco,-t 81C20I ;oreign currenc# translation resere" before ta4 @5<P8:'& S SJ8?-0.01A Sa+e accountI 81C20 3C' are subtracte! fro+ this account 82020I 3C' 0 ;oreign currenc# translation res. before ta4 C!A o- I-0estme-ts 5he conersion !ifference of the current %erio! bet/een each +oe+ent on inest+ent accounts an! the closing %osition is store! on flo/ ;G0. ConseLuentl# this a+ount is eli+inate! against the conersion reseres at the hel! co+%an# b# the IN7C&A elimination and adjustment rules. 5he entr# is balance! b# using the sa+e clearing accounts as for the inest+ent eli+ination. 'n this rule" grou% conersion reseres an! non0controlling interests conersion reseres are !efine! as the !estination grou% accounts an! !estination +inorit# accounts. Accor!ing to the built0in sco%e ariation calculation %rinci%le e4%laine! in Q B.1.2" it is necessar# to be able to select the cu+ulatie C5A a+ount at o%ening to recor! the a!just+ent on the o%ening flo/ an! so to %reent an# /rong sco%e change calculations b# the consoli!ation engine. ConseLuentl#" as e4%laine! in Q 1.1" the cu+ulatie a+ount of currenc# !ifferences bet/een historical rate an! closing rates oer ti+e %erio!s is store! in a !e!icate! off0balance account @also referre! to as a OtechnicalP accountAI <A11G10C. 5o co+%le+ent the inest+ent eli+ination entr#" /hich i+%acts the consoli!ation reseres" these currenc# !ifferences are reclassifie! fro+ consoli!ation reseres to conersion reseres at o%ening. 5his entr# is also recor!e! b# the '39C5A eli+ination an! a!just+ent rule on the '3920 au!it 'D. Design Documentation 39 So,rce acco,-ts Desti-atio- Gro,p acco,-ts No->co-trolli-g i-terests acco,-t Current %erio! C5AI A1G10I 'nest+ents in subsi!iaries" D9 an! associates Cu+ulate! C5A at o%ening <A1G10CI 5echnical 0 C5A on 'nest+ents 81C20I ;oreign currenc# translation resere" before ta4 @ A1G10 'nest+ents A1G1OC 'nest+ents clearing account 82020I 3C' 0 ;oreign currenc# translation res. before ta4 5he inest+ent currenc# !ifference is a!juste! on the o/ne! co+%an# @9swap entit E interco: optionA" using the consoli!ation rates of the o/ner co+%an# !efine! in the A<JA<J82 method1based multiplier. C!A o- Goo29ill 5he %rinci%le is i!entical to the one e4%laine! aboe for inest+ents an! is a%%lie! b# using !istinct configuration objectsI − 5echnical accountsI <A1144C an! <A1144C3C' − )limination and adjustment ruleI .)C5A an! ;.)C5A − Audit I!I .)20 an! ;.)20 ". Perio2ic $ig,res a-ageme-t <ear to !ate !ata is collecte! an! %rocesse! in the starter (it. 5he retrieal of %erio!ic figures is %ossible. =o/eer" %erio!ic figures are not translate! follo/ing a %erio!ic conersion. 5he# result fro+ the !ifference bet/een the O#ear to !ateP a+ounts of the current %erio! an! the %rior %erio!. Perio!ic a+ounts are sho/n in the 'nco+e State+ent an! the State+ent of Cash ;lo/s. 5he +o!els are !efine! /ith the O<ear 5o DateP !ata entr# +o!e. 5he built0in 5)A%'") a+ount t#%e is initiali7e! in the 'nco+e State+ent an! the State+ent of Cash ;lo/s to !istinguish bet/een %erio!ic an! #ear to !ate a+ounts in colu+ns. 5he State+ent of ;inancial Position @BSA is al/a#s !efine! /ith the <5D O#ear to !ateP 5)A%'"). Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 40 *. $i-a-cial Stateme-ts 6or Stat,tory P,.licatio- *.+. Calc,latio- o6 $i-a-cial Stateme-t Items 5he e4%ression Ofinancial state+ents for statutor# %ublicationP refers to the 1 follo/ing financial state+ents /hose ite+s are calculate! fro+ Balance Sheet +oe+ents an! 'nco+e State+ent ite+sI − State+ent of Cash ;lo/s @SC;A − State+ent of Changes in 8Luit# @SC8A − State+ent of @OtherA Co+%rehensie 'nco+e @SC'A • 5he State+ent of Cash ;lo/s" /hich is retriee! accor!ing to the in!irect +etho!" !eries fro+ the Balance Sheet flo/s an! the 'nco+e State+ent accounts. 't !iscloses cash effects fro+ o%erating" inesting an! financing actiities as reLuire! b# the 'AS F. • 5he State+ent of Changes in 8Luit# !iscloses an anal#sis of the ariation of the total eLuit# @grou% an! non0controlling interestsA oer the current %erio!. • 5he State+ent of Other Co+%rehensie 'nco+e ta(es its starting %oint in the net inco+e for the %erio! an! then %roi!es a !etaile! ie/ of the other co+%onents. 5he total co+%rehensie inco+e is s%lit bet/een grou% an! non0controlling interests. 3oteI Accor!ing to 'AS 1 reise!" the co+%rehensie inco+e ite+s can also be !isclose! in the State+ent of Co+%rehensie 'nco+e" /hich gies !etail on the +ain 'nco+e State+ent ite+s an! a su++ar# of the other co+%onents of co+%rehensie inco+e. =o/eer" this re%ort has not been create! in the starter (it. Consi!ering the large olu+e of !ata reLuire! to %ro!uce these 1 state+ents" the follo/ing 84cel /or(boo(s are !efine!I − SC;.*:S&I State+ent of Cash ;lo/s. 5his /or(boo( inclu!es all accounts an! flo/s necessar# to co+%ute the cash flo/ ite+s" /ithout brea(!o/n b# entit#. − SC' R SC8.*:S& for both the State+ent of Other Co+%rehensie 'nco+e an! the State+ent of Changes in 8Luit#. 5his /or(boo( inclu!es the reLuire! accounts an! flo/s" an! the brea(!o/n b# entit#" as nee!e! for the state+ent of Other Co+%rehensie 'nco+e. ;inancial state+ent ite+s are calculate! /ith stan!ar! 84cel for+ulas an! therefore" are not store! as a%%lication !ata. 5he first set of these for+ulas essentiall# ai+ at !istributing figures of all reLuire! in!icators into financial state+ent ite+s accor!ing to a +a%%ing table. 5he secon! set of for+ulas is +eant to actuall# %ro!uce financial state+ents b# aggregating the !ata !istribute! in all ite+s an! %resent it in re%orts. 5he 84cel /or(boo(s are structure! /ith the follo/ing tabsI − DataI retriees all in!icators fro+ the consoli!ation that contribute to financial state+ent ite+s. ;igures are obtaine! /ith a stan!ar! 8P& re%ort that e4%an!s in!icators in ro/s an! %erio!s in colu+ns. ;or the State+ent of Changes in 8Luit# an! the State+ent of Other co+%rehensie 'nco+e" the entities are also e4%an!e! in the colu+ns. 5he consoli!ation +etho!" store! in the O/nershi% +o!el is also retriee! than(s to the )P5"etrieve!ata for+ula @this for+ula reLuires the connection na+e to be in%ut in cell B2A. Design Documentation 41 − AccountI lists all +e+bers of the Account dimension /ith their %ro%erties. 5he# are use! as the source of the +a%%ing bet/een in!icators an! financial state+ent ite+s. 5his tab is also %o%ulate! b# an 8P& re%ort that e4%an!s all Account !i+ension +e+bers in ro/s. &e+ber %ro%erties are retriee! b# )P55emberPropert functions. − 'te+I contains all financial state+ent ite+s use! for the %ro!uction of the State+ent of Cash ;lo/s" the State+ent of Changes in 8Luit# an! the State+ent of Other Co+%rehensie 'nco+e. 5he# are !efine! /ithin a hierarch# na+e! Parent. ;or instance" the SC; account hierarch# notabl# inclu!es the follo/ing no!esI 3et Cash ;lo/s fro+ O%erating actiities" 3et Cash ;lo/s fro+ 'nesting actiities an! 3et Cash ;lo/s fro+ ;inancing actiities. 3one of these ite+s are %art of an# !i+ension !eclare! in the consoli!ation +o!elsI the# all +ust be create! an! +aintaine! +anuall# in the s%rea!sheet. − &a%%ingI s%ecifies cross0references bet/een source accounts an! flo/s on the one han! an! financial state+ent ite+s on the other han!. :i(e financial state+ent ite+s" these cross0references are not either %art of an# !i+ension !eclare! in the consoli!ation +o!elI the# also +ust be create! an! +aintaine! +anuall# in the s%rea!sheet. A +ore !etaile! !escri%tion of the &a%%ing /or(sheet is %roi!e! hereafter. − &atri4I contains onl# for+ulas. So+e rea! into the &a%%ing s%rea!sheet to fin! /hich ele+entar# %air of Zaccount 4 flo/[ to assign /ith a%%ro%riate financial state+ent ite+s. Other for+ulas fetch figures fro+ the Data /or(sheet an! assign the+ /ith a !estination ite+ on the basis of the relate! Zaccount 4 flo/[ %air. A +ore !etaile! !escri%tion of this /or(sheet is %roi!e! hereafter. − SC'" SC;" SC8I contains financial state+ents" built /ith con!itional su+ for+ulas that aggregate !ata calculate! on financial state+ent ite+s in the &atri4 /or(sheet. 'n the &a%%ing /or(sheet" each cross reference" also calle! a +a%%ing" has the follo/ing %ro%ertiesI − &etho!I for s%ecif#ing ho/ to select source accounts. Possible alues are Class or &a%%ing" to in!icate /hich account %ro%ert# is referre! to in the +a%%ing. − 9alueI for s%ecif#ing /hich alue of the %reiousl# chosen %ro%ert# is use! to select source accounts. 5he s%ecifie! alue +ust e4ist in the set of alues of the %ro%ert# chosen to select source accounts. − ;lo/I for selecting source flo/s. − 'te+I for s%ecif#ing the !estination financial state+ent ite+ !e%en!ing on the source accounts an! the source flo/. 5he ite+ +ust e4ist in the set of ite+s !eclare! in the 'te+ /or(sheet. − SignI for s%ecif#ing if the account , flo/ co+bination +ust be %ositiel# or negatiel# co%ie! to the ite+. 9alues +ust be 1 or 01. − $o/sI for+ulas calculating the cu+ulatie nu+ber of ro/s reLuire! to e4%an! all accounts for the s%ecifie! selection +etho! an! alue. 5hese for+ulas shoul! not be change! because their results are use! in the &atri4 /or(sheet. &a%%ings can be a!!e! or re+oe! b# inserting or !eleting ro/s /ithin the e4isting range. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 42 5he &atri4 /or(sheet contains onl# for+ulas that recalculate ele+entar# %airs of Zaccount" flo/[ an! !eter+ine to /hich relate! financial state+ent ite+s their figures fro+ the Data /or(sheet shoul! be aggregate!. 5o +a(e sure that all financial state+ent ite+s are correctl# calculate!" a sufficient nu+ber of for+ulas +ust e4ist in the range. ;or instance" if a ne/ +a%%ing is create! in the &a%%ing /or(sheet" a!!itional ro/s /ithin this range /ith a%%ro%riate for+ulas /ill hae to be create!" using a stan!ar! co%#,%aste of cells. 5o hel% +aintain this range" a control for+ula has been create! in the first cell of its right+ost colu+n. 5his for+ula sho/s a +essage in!icating if the +atri4 has enough ro/s. 'f not" an error +essage is !is%la#e! that calculates ho/ +an# a!!itional ro/s are nee!e!. 5hese ro/s +ust be inserte! an! then for+ulas fro+ an e4isting ro/ can be co%ie! an! %aste! to ne/ ro/s. 5he &a%%ing an! &atri4 /or(sheets are at the heart of financial state+ent ite+s calculation in the Starter >it. 5herefore" the# !esere %articular attention if changes shoul! be +a!e to their content. 'n %articular" it is strongl# reco++en!e! not to +a(e an# changes to the /a# these for+ulas are !esigne!" in or!er to %resere the correct calculation of all financial state+ent ite+s. 5he control for+ula +essage is !is%la#e! in all three financial state+entsI if an error is !etecte! in the &atri4 /or(sheet" all re%ort titles are re%lace! b# the error +essage. *.1. A,2it o6 $i-a-cial Stateme-t Items 't is %ossible to un!erstan! ho/ each financial state+ent ite+ has been calculate!. 5he en! user can !rill !o/n fro+ one ite+ of one of the financial state+ents for statutor# %ublication @SC;" SC8" or SC'A through to the res%ectie brea(!o/n b# original account an! original flo/. 5his au!it functionalit# of the state+ents is i+%le+ente! ia a 7BA macroD na+e! Filter5atri- /hich sho/s u% the &atri4 /or(sheet /ith ro/s filtere! accor!ing to the financial state+ent ite+ currentl# selecte!. 5hus" !uring o%eration" the en! user can !o the follo/ingI • $ight0clic( on one line of the State+ent of Cash ;lo/s" the State+ent of Changes in 8Luit# or the State+ent of Other Co+%rehensie 'nco+e. • 84ecute the Audit co++an! at the en! of the shortcut +enu. 5he brea(!o/n b# source account an! flo/ sho/s u% in the &atri4 /or(sheet. Design Documentation 43 E. Data Co-siste-cy Co-trols 5o secure the correctness of consoli!ate! state+ents" inclu!ing the State+ent of Cash ;lo/s an! the State+ent of Changes in 8Luit#" the Lualit# of re%orte! !ata is chec(e! at local leel @entit# b# entit#A an! at central leel for all entities. 5he follo/ing grou%s of controls are %erfor+e!I − Balance SheetI balance of the o%ening an! closing %osition" consistenc# of the gross alue , a+orti7ation an! i+%air+ent" net inco+e in eLuit# ersus 'S − ;lo/sI authori7e! flo/s" allo/ance an! /rite0bac( ersus 'S" balancing flo/s − 8li+ination accounts @central0leel controlA E.+. Local Le0el Co-trols ;our t#%es of controls are %roi!e! in the starter (it. • Co-trols 6or .ala-ce a-alysis @na+e! A4444A" such as balance sheet balance an! gross alue ersus !e%reciation. 5hese controls chec( both o%ening balance an! closing balance. 5he control of the balance sheet balance is bro(en !o/n b# Au!it 'D to ensure the consistenc# of each in%ut leel. • Co-trols 6or 6lo9 a-alysis @na+e! B4444A. ;or each account for /hich a flo/ anal#sis is reLuire!" these controls chec( that the 3et ariation flo/ @;1CA is eLual to 7ero. So+e controls also chec( that the total alue of so+e s%ecific flo/s is balance! @O;C00 5ransferP" O;0E0Change in accounting %oliciesP" O;F00Change in the restructuringPA. 5hese controls are bro(en !o/n b# Au!it 'D to ensure the consistenc# of each in%ut leel. • Co-trols 6or i-terco a-alysis @na+e! C4444" D4444" 84444A. So+e of these controls chec( the gross alue ersus the !e%reciation b# %artner" for both the o%ening balance an! the closing balance. ;or each interco account for /hich a flo/ anal#sis is reLuire!" other controls chec( that the 3et ariation flo/ @;1CA is eLual to 7ero" b# %artner. :astl# for all interco accounts @B,S an! PR:A" other controls chec( that the su+ of interco a+ounts @A::J'358$COA is lo/er that the total a+ount @'J3O38A. • :astl# the 5J00 control chec(s that for each B,S account" the closing balance @flo/S;EEA eLuals the su+ of o%ening balance an! the +oe+ents @calculate! in the 83D %arent +e+berA. 5his control is bro(en !o/n b# account an! au!it 'D. 5his control /as !esigne! for the follo/ing %ur%oseI the starter (it calculations ensure that the ;EE flo/ eLuals the 83D flo/. =o/eer" /hen i+%orting a file" the user can still !eactiate the !efault logic /hich triggers the calculation of the 3et 9ariation flo/ @;1CAI this /oul! result in a +is+atch of the ;EE flo/ an! the 83D flo/. All these controls are assigne! the OBloc(ingP t#%e. 5herefore the control status is chec(e! /hen the /or( status is change! in the Consoli!ation &onitor. 5hese controls are !efine! using the stan!ar! Controls rules. Controls are e4ecute! using the Controls 5onitor. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 44 E.1. Ce-tral Le0el Co-trols 5he ali!ation of !ata at central leel is %erfor+e! ia control re%orts locate! in the C$N&"$L ")P$"&% fol!er aailable in the C$N%$LI!A&I$N +o!el. • !ata Consistenc !ashboard2-ls- 5he ro/s of this re%ort allo/ the user to chec( the follo/ing for the aggregate! alue of all grou% entitiesI − the Balance Sheet is balance! for all flo/s !efine! as flo/s to be balance! ia the BA:A3C8D %ro%ert# @set to <AI O%ening" Closing" 'nco+ing entities" 5ransferM − the re%orte! closing balance @;EEA is consistent /ith the calculate! closing balance @%arent +e+ber 83DA for assets an! liabilities. − the net inco+e in the eLuit# @;1003et %rofit,loss for the %erio!A is consistent /ith the net inco+e,loss calculate! fro+ the inco+e state+ent @PEEE5A. − both A1G1=C an! A1G1OC inest+ent eli+ination accounts co+%ensate" the first one being the counter%art of the secon! one @su+ S 0A. − :astl# the botto+ %art of this re%ort focuses on reci%rocal interco+%an# clearing accounts @i.e. interco+%an# eli+ination accountsA b# highlighting interco+%an# +is+atches b# account categor#I if one clearing account !oes not eLual 0 for the su+ of all entities" !ifferent a+ounts /ere eli+inate! for each entit# an! so the interco+%an# in%ut !ata !oes not +atch. Clearing accounts are !#na+icall# selecte! using the 'S'358$CO %ro%ert# @alue SO8PA. 5hese !ifferent sections are !efine! using !ifferent reports that share the sa+e %age a4is an! ro/s a4is. 5he control results @OO>P flag" or !ifference a+ountA is !efine! using an 84cel formula inserte! in s%ecific local members !efine! in each re%ort. • $pening balance2-ls- 5his re%ort chec(s that the Balance Sheet o%ening balance eLuals the closing balance of the %reious #ear for each Balance Sheet account. 't is configure! !#na+icall# b# !efining hierarch#0base! selection that returns all +e+bers of assets" liabilities an! eLuit# accounts. 5he colu+ns are !efine! b# t/o se%arates re%orts @sharing the %age a4is an! the ro/ a4isA /ith a !#na+ic selection of the %reious #ear using the offset function in the member selector. 5he !ifference bet/een both colu+ns calculate! using local members2 • FLBL b AuditI!2-ls- 5his re%ort chec(s the follo/ing b# Au!it'DI o assets eLual the su+ of liabilities an! eLuit# at o%ening an! closing" o net inco+e in the eLuit# eLuals the net inco+e,loss calculate! fro+ the inco+e state+ent" o flo/s !efine! as to be balance! actuall# balance ;or each of these controls" Au!it'D are bro(en !o/n in ro/s" an! local members !is%la# the control results. Design Documentation 45 • FLBL b )ntit2-ls- • &his report is similar to 9FLBL b AuditI!2-ls-D but it shows a breakdown b entit in rows2 (. &or7i-g La-g,ages 5he starter (it han!les 8nglish as uniLue language. C. Sec,rity a-2 .,si-ess 9or76lo9s C.+. Sec,rity .y 2ime-sio- -ser can onl# enter !ata on their o/n entit#. 5he securit# allo/s !ifferentiating !ata entr# an! consoli!ation +anager %rofiles. %ecured !i+ensions are the follo/ingI Consoli!ation +o!elI O8ntit#P" OAu!it'DP O/nershi% +o!elI O8ntit#P $ates +o!elI O$ate8ntit#P 'n the three +o!els" the !i+ensions that stan! for Oentit#P !rie the !i+ensional securit#. Au!it'! has been a!!e! for the O8ntr# :eelP !ata access %rofile /hich reLuire! a!!itional !i+ensions for a +ore restricte! access. C.1. User gro,ps 5#%ical user roles inole! in the consoli!ation re%orting %rocess are !efine! in the starter (it. Affecting a user to a role sets all his,her rights auto+aticall# in ter+s of accessing %ro!uct features an! !ata. 'n a!!ition to the built0in NA!+in6 tea+" 4 teams that reflect business roles hae been !efine! in the starter (itI • Consoli!ation +anagers tea+ • Data entr# users tea+ • $e%ort ie/ers tea+ De%en!ing on the tea+ to /hich a user is affecte!" an entire securit# configuration a%%lies auto+aticall# @see E.Securit# settings b# tea+ of users on %age CBA Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 46 C.4. &or76lo9 ma-ageme-t A user +anaging a grou% of re%orting entities can chec( if the !ata entr# relate! tas(s hae been %erfor+e! an! assign the a%%ro%riate leel of a%%robation statusI starte!" sub+itte!" rejecte!" an! a%%roe!. 8en though users that are registere! as $wner in the 8ntit# !i+ension are li(el# to be change! after the starter (it is restore! in a ne/ eniron+ent" the /a# the# are hierarchicall# organi7e! illustrates ho/ .ork %tatus an! BP; /or(flo/s shoul! be !esigne! /ith the starter (it. 5his reco++en!e! configuration assigns the sa+e user to both the roles of )or( Status manager @$wner of a %arent entit# A1BA an! the role of BPF approver @reviewer of a chil! entit# A1BA. ID DESCRIPTION OWNER REVIEWER ALL_ENTITY Total All Entities CONSOMNGR EZONE Euro Zone CONSOMNGR (1) NA %/// +olding A 8erman , LOCALUSER CONSOMNGR (2) %//, %ubsidiar A 'nited Hingdom LOCALUSER CONSOMNGR C$N%$5N8" belongs to the C$N%$LI!A&I$N 5N8" &eam L$CAL '%)" belongs to the !A&A )N&"6 '%)"% team @see E.Securit# settings b# tea+ of users on %age CBA irrori-g roles A9or7stat,s ma-agerFBP$ appro0erB 5his +irroring structure shoul! be re%licate! /ith actual users as %art of the i+%le+entation %roject to (ee% BP;s an! )or(flo/s settings both consistent an! Luic(l# usable. 'n!ee!" the starter (it an! es%eciall# the BP;s are not configure! for !istinct reie/ers,a%%roers. @e.g. OCO3SO&3.$P is reviewer of OS000P but the .ork %tatus manager of OS000P is O:OCA:-S8$PA. 'n ter+s of .ork status" four leels hae been !efine!. B# !efault" the !ata is al/a#s set to the 9%tarted: O status. Once the !ata is entere! an! controlle!" bothO the o/ner an! the +anager are allo/e! to change the /or( status to OSub+itte!PO. ;ro+ this %oint on" the +anager onl# can change !ata using journalsO or in%ut for+sO. )hen the status is set to OA%%roe!P" onl# the +anager can set the /or( status bac( to O$ejecte!P or reset it to OStarte!P if necessar#O. As long as the status is OA%%roe!P" no !ata can be +o!ifie! using in%ut for+sO" but Dournals an! Data &anager are still %ossible for the &anager. ;or all /or( status" creation or +o!ification of co++ents an! !ocu+ents is %ossible. Design Documentation 47 )or( state Data &anager Dournals &anual entr# Co++ents Docu+ents Controlle! B# Starte! O All All All All All Both O Sub+itte! O &anager &anagerO &anagerO All All Both $ejecte! O/ner O/ner O/ner All All Both A%%roe! &anager &anager :oc(e!O All All &anagerO Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 48 B. Co-6ig,ratio- #0er0ie9 +. o2els Model Name Use Reporting Models CONSOLIDATION Reference Financial data Non Reporting models OWNERSHIP Consolidation Scopes: methods and consolidation rates by Entity RATES Currency Translation Rates 1. Dime-sio-s : Co-soli2atio- mo2el Dimension Type Use Category C-Category Reporting type / cycle: Actual, Budget, etc. Time T-Time Time period Entity E-Entity Reporting entity / (Legal/Management unit) Account A-Account Financial and Statistical accounts Flow S-Subtable Positions (Opening/Closing) and detail of movements AuditId D-Audit Business origin of the data Interco I-Interco Transaction Partner or held company in the group ConsoScope G-Group Consolidation Scope Currency R-Rep. Currency Consolidation Currency Design Documentation 49 4. Co-6ig,ratio- Speci6ic Dime-sio- Properties Onl# the starter (it s%ecific %ro%erties an! built0in %ro%erties use! in a %articular /a# in the starter (it are liste! belo/. ;or clarification regar!ing the other regular %ro%erties !eliere! in A%shell" %lease refer to the Planning and Consolidation !ocu+entation. Dimension Property Specific use Account ACCTYPE This built in BPC property is also used by the cash flow mapping. CFS Used for the Cash Flow accounts calculation processing (source account selection) FLOWAN Used in the input forms to highlight allowed flows GROUP Used in the script Logics to distinguish between Balance Sheet accounts (BSA), Income Statement accounts (ISA). UPROFILE Used to filter consolidation accounts (2CONSO) in the input forms so that only local level general ledger accounts (1GL) are initialized. ISINTERCO Used in input forms to display the “IC” indicator as appropriate. Flow FLOW_DOC Used in the member selector in the input forms to select relevant flows. BALANCED Used to identify flows for which the total of assets and liabilities and equity must be balanced (see notably the Dashboard control report) '. De6a,lt Script Logic Calc,latio-s 5he real ti+e calculations triggere! b# the !efault2lgf script logic as an! /hen !ata is in%ut in for+s or i+%orte! are the follo/ingI 1. Calculation of the inco+e of the %erio! in the balance sheet @81210 , ;10A 2. Calculation of the net ariation flo/ @;1CA as the !ifference bet/een closing an! the su+ of other Balance Sheet flo/s 5he !etaile! scri%t logic is aailable in a%%en!i4 @see A.1 0 Default.lgf Scri%t :ogicA ". a-,al @o,r-al E-try script logic< @o,r-al.lg6 5he real ti+e calculations triggere! b# the 4ournal2lgf script logic /hen a +anual journal entr# is boo(e! are the follo/ingI 1. '+%act fro+ PR: to BS 8Luit# @;10A 2. Carr#0oer of flo/s to the closing balance @;EEA 5he !etaile! scri%t logic is aailable in a%%en!i4 @see B0 Dournal.lgf Scri%t :ogic Default.lgf Scri%t :ogicA Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 50 *. Elimi-atio-s a-2 A2/,stme-t R,les 5he list of the eli+ination an! a!just+ent rules of the starter (it an! their %ur%ose is %resente! in the table belo/I Rule ID Purpose CONS_EQ Cancelling issued capital and share premium for subsidiaries CT_I_NONE !alancing "#$ against net %ariation cash DI& Elimination of di%idends DI&CT CT ' Elimination of di%idends DI&_INCP Di%idends ' Reclassification for incoming pa(ers ")* dditional rules for full good+ill recognition ")*CT CT ' "ull good+ill recognition "&,$ Di%idends ' Reclassification to "$, for incoming entities )* )ood+ill recognition )*CT CT ' )ood+ill recognition ICE-I. Elimination of reciprocal intercompan( operations IN& Elimination of in%estments IN&CT CT ' Elimination of in%estments .T/_EQ0IT1 Cancelling accounts for e2uit( method entities .T/_EQ0IT13 Restoring e2uit( accounts for e2uit( method companies .T/_EQ_- .anaging e2uit( method for outgoing and merged entities during the period .T/_PROP Proportionating accounts for proportionate entities .T/_PROP_- .anaging proportionate method for outgoing and merged entities during the period NCI_D45$ NCI ' .anual 6ournal entries entered +ith D45, NCI_CT,$ NCI ' CT$, ' .anual 6ournal entries on con%ersion reser%es NCI_"& NCI ' .anual 6ournal entries for OCI reclassification for incoming entities NCI_INP0T NCI ' INP0T NCI_INP0T,$ NCI ' INP0T,, NCI_INP0T5$ NCI ' .anual 6ournal entries entered +ith INP0T5, NCI_IN&7$ NCI 8 .anual 6ournal entries entered +ith IN&7, NCI_IN&7$_3 NCI 8 .anual 6ournal entries entered +ith IN&73 SCO_INC Reclassif(ing "$$ to "$, for incoming entities SCO_O0T .anaging lea%ing companies SCO_O0T3 Reclassif(ing "5# to "9$ for merged entities 5he configuration of the eli+ination an! a!just+ent rules hea!ers is aailable in a%%en!i4 @F 0 8li+ination an! a!just+ent $ulesA. Design Documentation 51 E. Bala-ce Carry $or9ar2 As !escribe! @see Q 1.1.1 %age 2 an! Q B.1.1 %age 20A" the carr# for/ar! of the o%ening balances is triggere! b# !ifferent %rocesses !e%en!ing on the au!it 'D t#%eI · At local leel an! for +anual journal entries" the carr# for/ar! is triggere! b# the Co%#O%ening !ata management package · ;or auto+atic entries" the carr# for/ar! is triggere! b# the Consoli!ation package. (. I-p,t 6orms a-2 Reports Co-6ig,ratio- Pri-ciples (.+. Ge-eral Pri-ciples Input forms an! "eports are !efine! b# using the )P5 $ffice Add1in )-cel2 3o +acro %rogra++ing is use!" e4ce%t for the State+ent of Cash ;lo/s" the State+ent of Changes in 8Luit# an! the State+ent of Co+%rehensie 'nco+e for /hich the configuration %rinci%le is !ra+aticall# !ifferent @see Q 0 on %age B0A. (.+.+. List o6 I-p,t $orms a-2 Reports I-p,t 6orm -ame Use &ain filesI ,, !alance:;ls; 3, Non'current non'financial assets:;ls; 33 "inancial ssets:;ls; 37 Other ssets:;ls; 3< Net E2uit(:;ls; 3= Net E2uit( E.:;ls; 3> -iabilities:;lt 39 Specific Operations:;ls; 7, IC !alance Sheet:;ls; 73 IC Profit and -oss:;ls; 77 IC Control !alance:;ls; 5hese in%ut for+s allo/ the en! user to enter BS !ata @o%ening an! closing balances an! !etails b# flo/A an! 'S !ata. 'nterco+%an# in%ut for+s allo/ the user to in%ut !etails b# interco for one account selecte! in the 8P& conte4t. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 52 Report -ame Co-te-t ;inancial State+entsI ,, !S:;ls; ,3 IS:;ls; ,7 SC":;lsm ,< SCI ? SCE:;lsm Anal#sis $e%ortsI 3, !S b( "lo+:;ls; 33 !S b( "lo+ and uditID:;ls; 37 !S b( uditID:;ls; 3< !S b( Entit(:;ls; 3= IS b( uditID:;ls; 3> IS b( Entit(:;ls; Brea(!o/n $e%ortsI 7, !@D b( Entit(:;ls; 73 !@D b( Partner:;ls; Control $e%ortsI <, Data Consistenc( Dashboard:;ls; <3 "-!- b( uditID:;ls; <3 "-!- b( Entit(:;ls; << Opening !alances:;ls; Balance Sheet @stan!ar! an! shortA 'nco+e State+ent @stan!ar! an! shortA State+ent of Cash ;lo/s State+ent of Co+%rehensie 'nco+e an! State+ent of Changes in 8Luit# 5hese re%orts %roi!e a!!itional !etails of the B,S an! ',S b# ;lo/" Au!it 'D" 8ntit#. 5hese re%orts %roi!e the !etails of an account balance b# entit# or %artner. 5he account is selecte! in the )P5 Conte-t2 5hese re%orts %roi!e a!!itional controls" such as clearing accounts" flo/s that shoul! be balance!" controls b# Au!it'D... (.+.1. em.ers selectio- Di+ension +e+bers are selecte! in the in%ut for+s an! re%orts using the 5ember %elector features. 5he selections are !efine! using %arent +e+bers" base +e+bers" %ro%erties" or a co+bination of these. 5o ease the enhance+ent of the Starter >it configuration" selections are OdnamicP so that ne/ +e+bers /ill be auto+aticall# inserte! in the for+s an! re%orts %roi!e! that these +e+bers are assigne! the correct %arent +e+ber an! %ro%erties. 5he tables belo/ list the %ro%erties use! for the +e+bers selection in the Input forms an! "eports. I-p,t 6orms Dime-sio-s Property EDamples Account -P$O;':8 1.:" 2CO3SO ;:O)A3 ;2C ;10 ;1C ;00 ;EE ;0E ;C0 ;F0 -P$O;':8 1.:" 2CO3SO Design Documentation 53 ;lo/ ;:O)JDOC OP8" D8P" P:"M 'S'358$CO < Reports Dime-sio-s Property EDamples Account S5<:8 =" 3="51M 'S'358$CO 8"S"< ;lo/ ;:O)JDOC OP8" D8P"P:"M BA:A3C8D < D'&:'S5JD8S5 DJ$858A$3J&M ;or %erio! co+%arison" the +e+ber selection for the 5'&8 !i+ension is !efine! using the $ffset function. (.+.4. $ormatti-g ;or+atting of the 'n%ut for+s an! $e%orts are !efine! in Formatting %heets. ;or 'n%ut ;or+s !e!icate! to the flo/ anal#sis" 84cel conditional formatting is use! in the for+atting sheet to stri%e the cells /hich corres%on! to an incorrect Account , ;lo/ co+bination. 5his is !efine! as follo/I • 'n the re%ort" a local member is !efine!" /ith the )P55emberPropert" to fetch the ;:O)A3 %ro%ert# /hich contains the list of %ossible flo/s for each account. 5his %ro%ert# is then use! in the con!itional for+atting for+ula. =o/eer" the alue of the ;:O)A3 %ro%ert# is not isible" because of a s%ecific for+at a%%lie! to this local member. • 'n the Formatting %heet" an 84cel con!itional for+atting is !efine! for the Obase leelP ro/. 5his con!itional for+atting is base! on a for+ula /hich chec(s that the flo/ 'D in the colu+n hea!er is inclu!e! in the ;:O)A3 %ro%ert# alue of the account in the ro/. )hen this is not true" the cell is stri%e!. 5his con!itional for+atting /or(s if the follo/ing con!itions are +etI - 5he flo/ 'D +ust be 1 !igits long @e4a+%leI ;C0A - 5he cell na+e! Ocol*flowanP +ust contain the colu+n nu+ber /ith the FL$.AN %ro%ert# @colu+n B in the !eliere! in%ut for+sA - 5he cell na+e! Orow*flowP +ust contain the ro/ nu+ber of the flo/ @ro/ E in the !eliere! in%ut for+sA De%en!ing on the for+atting reLuire+ents of the 'n%ut for+ an! $e%orts" seeral ;or+atting Sheets hae been !efine!. ;or instance" the BS.4ls4 file contains 2 re%ortsI OState+ent of ;inancial PositionP" an! OStat. of ;in. Position H ShortP. 8ach re%ort is assigne! to a !ifferent Formatting %heet" res%ectiel# OFormat %&AN!A"!P" an! OFormat B6 %&6L)P. Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 54 8+%t# colu+ns or e+%t# ro/s are so+eti+es inserte! to +a(e the 'n%ut for+ or $e%ort easier to rea!. 5his is !one b# inserting local members /ithout for+ulas. (.1. Speci6ic Setti-gs • '358$CO&PA3< 'n%ut ;or+ 5o enable the insertion of ne/ interco +e+bers b# the user" the 8P& function OActivate 5ember "ecognitionP is selecte! in the %heet $ptions. • ;:O) A3A:<S'S 'n%ut ;or+s )hen the flo/ F,I A Net 7ariation is not enable! for the accounts @i.e. this flo/ is use! as a controlA" it is rena+e! as OControlP using the 5ember Names in the re%ort !efinition. • State+ent of Cash ;lo/" State+ent of Changes in 8Luit# an! State+ent of Co+%rehensie 'nco+eI these re%orts contain a 9BA +acro /hich enables a s%ecial Drill Do/n fro+ the re%ort to the corres%on!ing !etail lines in the 5atri- /or(sheet. C. Sec,rity setti-gs .y team o6 ,sers !eam Local Users Co-soli2atio- a-agers AC#NS#NGRSB Data 0ie9ers ADIN !as7 Pro6iles EN!RY !ASGS He settings# - Onl# Oie/P rights in )eb A!+in - Onl# Oie/P rights on Dournals - Access to $e%orts an! 'n%ut ;or+s allo/e! - $un %ac(age enable C#NS# !ASGS He settings# - All rights but onl# ie/ rights on &o!el a!+inistration an! s#ste+ DA!A %IE& He settings# - Can run !ocu+ents using 8P& client an! )eb re%orts. @-se of BP; can be a!!e! in the securit# settingsA ALL!ASG He settings# - All tas(s allo/e! @latest tas(s fro+ ne/ %ro!uct releases shoul! be a!!e! +anuall# in this %rofileA Data access pro6iles EN!RY LE%EL ")A! J ."I&) Co-soli2atio- mo2el - 835'5< TA::V - A-D'5'DI TA::J'3P-5V $8AD O3:< #9-ership mo2el - 835'5< TA::V ALL EBERS ")A! J ."I&) Co-soli2atio- mo2el - 835'5< TA::V - A-D'5'D TA::V #9-ership mo2el - 835'5< TA::V Design Documentation 55 Rates mo2el - $A58835'5< TA::V Rates mo2el - $A58835'5<TA::V Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 56 C. Appe-2iD +. De6a,lt.lg6 Script Logic // The DEFAULT.LGF script includes calculations run when data is entered / imported into the current application. // WARNING!: for performance reasons, mind the number of COMMIT sections in this script. //-------------------------------------------------------------------------------------------------------------------- // Defining the list of audit IDs to which the subsequent calculations should apply: AUDITID_LIST // In this case: all input audit IDs //-------------------------------------------------------------------------------------------------------------------- *XDIM_MEMBERSET MEASURES = YTD *SELECT (%AUDITID_LIST%,"[ID]",AUDITID,"[DATASRC_TYPE] = 'I'") *XDIM_MEMBERSET AUDITID = %AUDITID_LIST% //-------------------------------------------------------------------------------------------------------------------- // Calculating E1610 - F10: Net income of the period in the balance sheet //-------------------------------------------------------------------------------------------------------------------- // Information: [XDIM_MEMBERSET FLOW = <xx>] is mandatory in the default logic *XDIM_MEMBERSET FLOW = PL99,F10 // F10 must be included in order to enable difference calculation *XDIM_MEMBERSET INTERCO = I_NONE *XDIM_MEMBERSET CONSOSCOPE = G_NONE *XDIM_MEMBERSET ACCOUNT<>E1610 // Excludes flow F10 and account E1610 from the source data region *WHEN ACCOUNT.ACCTYPE *IS "INC" *REC(FACTOR = 1,ACCOUNT = "E1610",FLOW = "F10") *ELSE *WHEN ACCOUNT.ACCTYPE *IS "EXP" *REC(FACTOR = -1,ACCOUNT = "E1610",FLOW = "F10") *ENDWHEN *WHEN ACCOUNT *IS "E2010" *REC(FACTOR = -1,ACCOUNT = "E1610",FLOW = "F10") *ELSE *ENDWHEN *ENDWHEN *COMMIT //---------------------------------------------------------------------------------------------------------------------------------------------- // Calculating F15 - net variation as the difference between closing and the sum of other balance sheet flows //---------------------------------------------------------------------------------------------------------------------------------------------- // Information: [XDIM_MEMBERSET FLOW = <all>] is mandatory in the default logic *XDIM_MEMBERSET MEASURES = YTD *XDIM_MEMBERSET ACCOUNT = <all> *XDIM_MEMBERSET FLOW = <all> *XDIM_MEMBERSET AUDITID = %AUDITID_LIST% Design Documentation 57 *WHEN ACCOUNT.GROUP *IS "BSA" *WHEN ACCOUNT.ACCTYPE *IS "AST", "LEQ" *WHEN FLOW *IS "F99" *REC(FACTOR = 1,FLOW = "F15") *ELSE *WHEN FLOW.PARENTH1 *IS "END" *WHEN FLOW *IS "F15" // nothing *ELSE *REC(FACTOR = -1,FLOW = "F15") *ENDWHEN *ENDWHEN *ENDWHEN *ENDWHEN *ENDWHEN *COMMIT 1. I-p,t 6orm > EDample o6 $+">Net %ariatio- Co-trol 4. EDample o6 $L#&AN Property %al,es 'D D8SC$'P5'O3 ;:O)A3 TBS Balance Sheet A999T Total assets A199T Non current assets A119T Property, plant and equipment A1110 Lands and buildings F20 F30 F55 F00 F99 F09 F50 F70 A1111 Lands and buildings, Dep. F25 F30 F55 F00 F99 F09 F50 F70 A1112 Lands and buildings, Impair. F25 F30 F35 F00 F99 F09 F50 F70 A1120 Tangible exploration and evaluation assets F20 F30 F55 F00 F99 F09 F50 F70 A1121 Tangible exploration and evaluation assets, Dep. F25 F30 F55 F00 F99 F09 F50 F70 A1122 Tang. exploration and evaluation assets, Impair. F25 F30 F35 F00 F99 F09 F50 F70 A1130 Fixtures and fittings F20 F30 F55 F00 F99 F09 F50 F70 Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 58 A1131 Fixtures and fittings, Dep. F25 F30 F55 F00 F99 F09 F50 F70 3oteI 'n ;:O)A3 %ro%ert# alues" the flo/s that are !iscri+inating for the account co+e first @orangeA an! co++on flo/s that are generall# share! bet/een all the accounts of a grou% co+e after @greenA. '. @o,r-al.lg6 Script Logic // Measures have to be specified *XDIM_MEMBERSET MEASURES=YTD //-------Impact from P&L to BS Equity-------------------- *XDIM_MEMBERSET FLOW=<ALL> *XDIM_MEMBERSET ACCOUNT=<ALL> *WHEN ACCOUNT.ACCTYPE *IS "INC" *REC(FACTOR=1,ACCOUNT="E1610",FLOW="F10") *REC(FACTOR=1,ACCOUNT="E1610",FLOW="F99") *ELSE *WHEN ACCOUNT.ACCTYPE *IS "EXP" *REC(FACTOR=-1,ACCOUNT="E1610",FLOW="F10") *REC(FACTOR=-1,ACCOUNT="E1610",FLOW="F99") *ENDWHEN *ENDWHEN *COMMIT //-------Carry over on closing balance-------------------- *XDIM_MEMBERSET FLOW=<ALL> *XDIM_MEMBERSET ACCOUNT=<ALL> //This instruction is necessary to force all flows to be included in the execution zone. //This is because, by default, only FLOW members used in the Manual Journal Entry are selected. *WHEN FLOW.PARENTH1 *IS "END" *REC(FACTOR = 1,FLOW = "F99") *ENDWHEN *COMMIT Design Documentation 59 ". Copy#pe-i-g.lg6 logic script WRUN_PROGRAM COP<OP83'3. CA58.O$< S YCA58.O$<JS85Y C-$$83C< S YC-$$83C<JS85Y 5'DJ$A S Y5'&8JS85Y O5=8$ S T835'5< S Y835'5<JS85YV W83D$-3JP$O.$A& ,, Carr# oer on the closing flo/ for &anual Dournal 8ntries ,,00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 ,, 10 Defining the list of Au!it 'Ds /hich the subseLuent calculation shoul! a%%l# toI A-D'5'DJ:'S5 ,,00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 WSELECT @YA-D'5'DJ:'S5Y"\T'DV\"A-D'5'D"\TDA5AS$CJ5<P8V S ]&]\A ,,00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 ,, 20 Calculating the closing flo/ ;EE as the su+ of o%ening U +oe+ents ,,00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 W*D'&J&8&B8$S85 A-D'5'D S YA-D'5'DJ:'S5Y WWHEN ;:O).PA$835=1 WIS \83D\ WREC@;AC5O$ S 1";:O) S \;EE\A WENDWHEN WCOMMIT ,,00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 ,, 10Calculating ;1C 0 net ariation as the !ifference bet/een closing an! the su+ of other balance sheet flo/s ,,00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 WXDIM_MEMBERSET &8AS-$8S S <5D WSELECT @YA-D'5'DJ:'S5J;1CY"\T'DV\"A-D'5'D"\TDA5AS$CJ5<P8V S ]']\A WXDIM_MEMBERSET A-D'5'D S YA-D'5'DJ:'S5J;1CY WXDIM_MEMBERSET ;:O) S ^all_ WWHEN ACCO-35..$O-P WIS \BSA\ WWHEN ACCO-35.ACC5<P8 WIS \AS5\" \:8?\ WWHEN ;:O) WIS \;EE\ Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S SP1 60 WREC@;AC5O$ S 1";:O) S \;1C\A WELSE WWHEN ;:O).PA$835=1 WIS \83D\ WWHEN ;:O) WIS \;1C\ ,, nothing WELSE WREC@;AC5O$ S 01";:O) S \;1C\A WENDWHEN *ENDWHEN *ENDWHEN *ENDWHEN *ENDWHEN *COMMIT *. Carry $or9ar2 R,les Design Documentation 61 E. Elimi-atio- a-2 a2/,stme-t R,les 62 (. Nami-g Co-0e-tio- 6or etho2>.ase2 ,ltipliers Digit: 4 5 6 7 Possible %alues Separator A B_B IntercoA Status ? .ethod IntercoA Change inscope Separator A B_B &alue , A l l A ll 1 *ith "lo+s _ Idem Entity Idem Entity _ E Entit( , "i;ed %alue 1 Current &alue 3 B /ol di ng C "ul l C Proporti onate D Di %ested 2 *ithout "lo+s I Interco 2 PCON D PO*N D PCON' PO*N P Prior &alue 7 C "ul l CProporti onate M .erged &alue < H /ol di ng E,,,F L -ea%i ng . Mi;ed 3 PCON'PO*N D <empty> D PCON' &alue = S Subsi di ari es E,$$G =$G 3$F Y l l but outgoi ng H "iXed 4 PCON D PCON &alue > P Proporti onate E=$G=,F 9 No Interco 9 No Interco &alue 9 E E2ui t( E3$F - I D J . , *ith flo+A e;luding 9$$ and C or #$$ 3 *ithout flo+A Including 9$$ andCor #$$ 1 Entit(A Status ? .ethod Entit(A Change in scope .o%ements C flo+s selected for -ea%ing companies 2 9 "ormula combination Period 10 3 8 "ormulaKs refers to entit(Ks or IntercoKs rate Planning an! Consoli!ation 10.0 3et/eaer" starter (it for ';$S 63 C. U@=%ALIDA!I#N Setti-gs +H. $irst Co-soli2atio- Process +H.+. R,--i-g the $irst Co-soli2atio- )hen o%erating the consoli!ation for a gien sco%e for the first ti+e in the a%%lication" it is necessar# to %o%ulate an! %rocess the %rior #ear0en! ti+e %erio! for this sco%e @e.g. 2010.D8CA in a!!ition to the first reLuire! consoli!ation @e.g. 2011.D8CA. 5his is because the flo/s !e!icate! to the sco%e change anal#sis are %ro%erl# %o%ulate! b# the consoli!ation engine %roi!e! that at least one auto+atic journal entr# has been !etecte! in the consoli!ation use! as o%ening consoli!ation" /hich b# !efault is the %rior #ear en! @Dece+ber" #ear 01A. 5o !o so it is reco++en!e! that #ou i+%ort all in%ut0leel o%ening !ata of the first reLuire! consoli!ation @flo/ ;00A into the closing !ata @;EEA of the %rior #ear0en! ti+e %erio!" inclu!ing interco+%an# brea(!o/ns. ConseLuentl# the net ariation flo/ ;1C /ill be calculate! as eLual to the closing %osition @since the o%ening %osition is 0 for this %re%arator# ti+e %erio!A" in %articular the brea(!o/n b# interco+%an# in the balance sheet /hich triggers auto+atic eli+inations carrie! oer to the closing %osition. After the consoli!ation %rocess" the closing !ata of the %rior #ear en! ti+e %erio! /ill contain the a%%ro%riate source !ata for the o%ening !ata of the follo/ing consoli!ation" notabl# the o%ening auto+atic journal entries. +H.1. E3,ity Co-0ersio- a-2 C!A )hen running the consoli!ation for one gien consoli!ation sco%e for the first ti+e in the a%%lication" the cu+ulate! a+ount of the conersion reseres +ust be recor!e! for each foreign entit# in the %rior #ear en! consoli!ation. 5his can be !one b# either %roce!ure e4%laine! belo/. • '+%orting the eLuit# a+ounts conerte! into the consoli!ation currenc# @%referre!A. 5his %roce!ure leerages the fact that a s%ecific conersion %rocess a%%lies to eLuit# accountsI the relate! conerte! o%ening alue carrie! oer fro+ the %rior %erio! conerte! alue is +aintaine! as such instea! of being calculate! fro+ a+ounts in local currenc# an! the e4change rates %erio! as it is the case /ith the other balance sheet accounts. ConseLuentl#" the conerte! alue of eLuit# as /ell as conersion reseres can be i+%orte! into the %rior %erio! use! for %re%aring the o%ening !ata. 5he +ain ste%s are the follo/ingI 64 1. Calculate the historical alue of each eLuit# account an! the corres%on!ing cu+ulate! conersion resereK calculate also the conersion !ifference on inest+ents b# entit# @o/nerA an! interco @hel! co+%an#AK 2. '+%ort or in%ut the eLuit# accounts6 o%ening flo/ ;00 as eLual to the closing %osition ;EE in :CK 5he net ariation flo/ ;1C /ill therefore eLual 0" an! /ill not change the conerte! closing alue b# a!!ing u% to the conerte! o%ening alue /hich is carrie! oer to ;EE as %art of the conersion %rocess. 1. '+%ort the conerte! a+ounts calculate! at ste% 1 into the a%%lication on the a%%ro%riate !i+ension +e+bersI ` AccountsI 8444" 81C20 an! the <A1G10C off0balance account for conersion !ifferences on inest+ents ` 5i+e %erio!I %re%arator# ti+e %erio! for o%ening !ata ` ;lo/I ;00 ` ConsoSco%eI .J3O38 ` Currenc#I consoli!ation currenc# against /hich the conerte! alue is calculate! ` Au!it 'DsI '3P-5" an! %ossibl# other in%ut0t#%e Au!it 'Ds if an# local leel a!just+ent B. $un the corres%on!ing consoli!ation. 5he res%ectie o%ening rate @%reious closing rate" i.e. first consoli!ation ti+e %erio!02A an! aerage rate shoul! eLual the closing rate so that no a!!itional currenc# conersion !ifference is calculate! b# the conersion engine. 5he auto+atic a!just+ent rules /ill %ost the 3C' on conersion reseres an! the C5A on inest+ents fro+ the i+%orte! !ata. C. Po%ulate the conerte! o%ening !ata of the first reLuire! consoli!ation b# triggering the Co%#O%ening Data &anage+ent Pac(age /ith the consoli!ation currenc# !efine! as %ara+eter. 5his is the %referre! o%tion because it allo/s #ou to boo( the historical eLuit# alue an! conersion reseres in accor!ance /ith the set of Au!it 'Ds use! for the currenc# translation a!just+ents in subseLuent consoli!ation of the follo/ing %erio!s. • &anual Dournal 8ntries 5he cu+ulate! conersion reseres can also be boo(e! on the %re%arator# ti+e %erio! ia +anual journal entr# using s%ecific Au!it 'Ds !e!icate! to C5A on eLuit# an! inest+ents. =o/eer accor!ing to this a%%roach" the C5A cu+ulate! u% to the first consoli!ation on the one han! an! the subseLuent C5A on the secon! han! are then store! on !ifferent Au!it 'Ds. ConseLuentl# ia !ata i+%ort or +anual journal entries" the closing balance of the %rior %erio!6s @e.g. 2010.D8CA technical consoli!ation contains the correct source a+ounts for the o%ening alues of the first consoli!ation ti+e %erio! @e.g. 2011.D8CAI local currenc# a+ounts" conerte! a+ounts an! auto+atic a!just+ents.