I need to add a new group of entities into our Entity hierarchy and am a little confused if I need to create a sub total entity level for consolidation purposes.
My thoughts were to create the below hierarchy
ZZ total - parent level - no data entry permitted - used purely for consolidation
- A Company (only 51% owned by Group) - base level - data entry permitted (this entity owns the following 3 entities 100%) - child of ZZ total
- B Company - base level - child of ZZ total
- C Company - base level - child of ZZ total
- D Company - base level - child of ZZ total
My issue is - do I create a subtotal entity for companies B, C, D as these are legally 100% owned and consolidated within A Company but I don't want the results of B, C, D within the total of ZZ?
The figures that should consolidate into ZZ total should only show A Company results and therefore a parent adjustment journal to eliminate the results of B, C & D needs to be performed.
If I create this subtotal entity below A Company in the hierarchy, can A Company still be a base entity for data entry if it now becomes a parent of subtotal entity? Can it do both - have entities roll up into it as well as data loaded into it each month?
Grateful for any assistance
In addition to my confusing baffle above would the below solution work?
If I setup an entity group total "G"- 100% ownership
Under this total I have the main trading company "A" - 51% owned by our group
then also under this "G" total another group "I" which will consolidate the 3 investment companies 100% owned by the main trading company "A" but give this group an ownership of 51% so that when I take the consolidated values of group "G" I only have my 51% iroll up into our group accounts.
So it will look like this in the entity hierarchy:
Consol group accounts
----A entity - 51% owned by Consol group
--------B entity - 100% owned by A
--------C entity - 100% owned by A
--------D entity - 100% owned by A
At the consol level I only want 51% of this new group. Can someone please confirm that if I allocate ownership to "A" entity and "I" Group 51% ownership then I will get the correct results.
Also, if we do not have management control of "A" entity do I also tag this as Associate as well as "I" group?
Edited by: jamdom on Aug 6, 2012 9:26 PM
Edited by: jamdom on Aug 6, 2012 9:28 PM
Edited by: jamdom on Aug 6, 2012 9:29 PM