Prior to running consolidation, the ownership structure needs to be maintained. In this blog, we will briefly describe the ownership manager interface and show you how to add new companies to scopes, assign their ownership methods and ownership percentages.

This activity doesn’t need to be done every month. If the ownership structure has not changed, you can trigger the copy data action trigger to replicate the ownership structure to any destination month and version.

Overview:

The ownership manager is an interface that shows you the scopes in a hierarchical manner, based on the PARENT_GROUP property. (this is not an actual hierarchy, since sub-scopes should not be arithmetically added to parent scopes). A scope can have as many sub scopes as needed, and each scope can have as many entities as required. Within the scope, we determine which company is the holding company, and which companies are the subsidiaries and affiliates by designating the Method. So far, there are four methods, Holding, Full, Equity and Proportionate. Method and percentages changes from month to month are handled automatically by the system.

The list on the left is a custom widget designed to show the scopes in a hierarchical manner, and the entities within these scopes are listed it. When you select a scope from the left list, it will show you the directly owned companies within it. Alternatively, when you select a company from the list on the left, it will show you every scope it has been added to.

Manage Scopes:

By clicking on the Manage Scope button, we can create new scopes ID and Description, assign their group currencies, and parent scope. The default behavior of the consolidation is rollup, but by activating staging consolidation, we can assign the entity and audit trail that will host the consolidated values of the scope, which will, in turn, be reflected in the parent scope.

This interface provides us with the options to create new scopes, edit existing scopes and delete existing scopes. When a scope is deleted, the system will automatically delete all data associated with it, whether private or public, so consider this option carefully.

Adding Entities to Scopes:

Consider that we have created several scopes, assigned their parenting and group reporting currencies and now want to add the entities to the scopes. We are starting with scopes with no entities assigned.

The first thing to be done is to select the specific scope from the list. From the left list, when a scope is selected, the Add/Remove Entities button will appear (it will not appear if you select an entity). Then click on the Add/Remove Entities.

From the entity popup, select the entities that should be included in the designated scope from the left checkbox group, and click the right arrow to move them to the right checkbox group with a title Entities included in the scope: (your selected scope).

Once done, click on close to start assigning their methods of consolidation, consolidation percentages and ownership percentages.

The added entities to the selected scope have been added to the scope and can be seen in the scope table custom widget. Assign the consolidation method from the dropdowns, whether holding, full, equity, or proportionate.

Enter the percentage of consolidation and percentage of ownership. Then Save the the data by clicking on the Save Button

The system will register the structure, methods and percentages to the model directly. After you have saved the data, the publish button will be visible, click on publish to publish these values to the public version.

You can conduct the same for the sub-scope, by selecting the scope from the left list, adding the entities to the scope and assigning their methods and percentages.

As mentioned in the beginning of this blog, the ownership structure can be copied from one to several months and version by using the copy data action.

Other functionalities and features are also in this analytic application, and further enhancements are always being done, but the covered steps are enough to set the ownership structure for the consolidation automation.