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IC eliminations where proportional method is involved

edited May 27, 2024 11:26AM in Financial Consolidation and Close 7 comments

Hi people

Has anyone got any smart suggestions how I can get IC elimination logic to work as expected where proportional consolidation is involved? I get incorrect IC eliminations at consolidated levels using proportional consolidation…

Consolidation methods are configured as follows:
50-100% Subsidiary
33-50% Proportional
0-33% Equity
0% NotConsolidated

Here is an example:

Company A sells 1 000 000 to company B.

Company A consolidates to Group A, company B consolidates to Group B, and they consolidate to Group X.

Company A is 45% owned by Group A and uses Proportional method, so 450 000 consolidates to Group A.
Group A is 100% owned by Group X  and uses Subsidiary method.

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