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Topic

    Ligia Olguin
    Ownership module not enabled
    Topic posted October 7, 2019 by Ligia OlguinGreen Ribbon: 100+ Points, tagged Consolidation, Eliminations 
    33 Views, 1 Comment
    Title:
    Ownership module not enabled
    Content:

    Hi guys,

    We're currently working in an application that does not have the Ownership Module enable. It's an organization with 10 companies, all fully owned. Eliminations are working all OK, except for the investment in subs/Common stock elimination. We were going to enable the module but before doing that, we wanted to know if someone has worked with an application that does not have the module enabled. If that is the case, did you make the both Investment in Subs/Common stock IC accounts and then create a plug account to link them?  Could that work?

    Thanks!

     

    Version:
    19.10.55

    Comment

     

    • Keith Glide

      Yes, a Standard Elimination should be able to eliminate Investment in Subs with Owner's Equity without using the seeded consolidation rules that are only available with Ownership Management enabled. To make the outcome similar to the seeded consolidation rule, the Plug account would be Goodwill Offset (or you can use whatever account you prefer for any mismatch). I believe that this is the technique used by "early-adopter" clients who implemented FCCS before the Ownership Management and Configurable Consolidation rules became available.