2 Replies Latest reply: Jul 18, 2013 3:33 AM by 968598 RSS

    Equity Pickup usage

    968598

      Hi All,

       

      I would like to understand at which phase of the consolidation process does the equity pickup apply... for example:

       

      1. Does it happen on legal entity's data?

      2. Or does it happen after translation, before consolidation?

      3. Any other..

       

      How the effect of the equity pickup can be separately audited? Is it possible to use specific custom4?

       

      Many thanks!!

        • 1. Re: Equity Pickup usage
          Mahendran

          Hi

          I hope the below answers your question.

           

          EPU Calculation Process

           

          The EPU calculation process may require you to run calculations or consolidations on Owner and Owned entities, and may include translation, if the Owned and Owner entities use different currencies.

           

          The calculation process follows these steps:

           

          1. For each pair of entities, the system calculates the owner and owned entities in the default currency. If the Calculation Status for Value Entity Curr Total is not OK or ND, the Calculate or Consolidate (if parent entity) process is run.

          2. The system translates the Owned entity into the default currency of the Owner entity (if the value is not OK - already translated), and executes Calculate for Parent Curr Adjs if necessary (if Calculation status is not OK or ND).

          3. The system runs the SUB EPU() routine in the Rule file.

          4. The system calculates the Owner entity. If the Calculation status for Owner in Entity Currency is not ND, Calculate runs to set the entity to OK status. This final calculation should take place only if the Owner entity does not own the next pair and if new data was posted to the Owner entity.

           

          At the end of the calculation process, both the calculation and EPU status of the pair should be OK, unless another process changed the entities in the meantime.

           

          thank you

          Mahe

          • 2. Re: Equity Pickup usage
            968598

            OK Mehendran,

            but I still don't understand whether the EPU impacts the EC, ECA, PCA, ELIM, PROP, ...etc.etc.

             

            Can you clarify this point? Many thanks!

             

            A.