FCCS Combined ownership and consolidation method change

Summary

FCCS Ownership management - Combined ownership and consolidation method change

Content

Should FCCS be able to handle consolidation method change with combined ownership out of the box with multilevel entity hierarchy?

With following entity hierarchy the Div1 combined ownership for E2 is 80% and should be consolidated there with subsidiary method. E2 should be consolidated to P1 and P2 with equity method as it is owned at 40%.

 

Top
 |_Div1
     |___P1
     |   |__E1
     |   |__E2 (40% Own, Equity Method, PCON=0)
     |___P2
          |__E3
          |__E2 (40% Own, Equity Method, PCON=0)

 

We built the entity hierarchy to FCCS ownership management and simulated the case, but E2 consolidation method change due to combined ownership was not correctly handled when consolidated to Div1. FCCS admin guide indicates that adjustments should be made in the Entity Elimination Adjustments Consolidation member.