Consolidation Data Processing
Definition of event scenarios for Ownership structure register¶
An event scenario is a fictitious original scenario used by the system to manage events to date, or events linked to a specific date. In this case, events which from a specific date bring about a change to the ownership structure. Generally, an event scenario is used to manage the actual events; one for each data process of the budget. Thus, hypothetical future events can also be included.
Management of reference FX rate scenario¶
These settings are defined in theDefine Consolidation Area page. See Define Consolidation Area page.
To convert the data, CCH Tagetik uses the FX rates of the original scenario linked to the processed consolidation scenario. However, the system can be overridden so it reads the FX rates from another original scenario. This is useful if, with the same original scenario, you want to generate two consolidation scenarios where the only difference between them is the FX rate applied. For example, to convert an actual amount also at the budget FX rate.
Management of prefixes for financial investment reclassification journals¶
These settings are defined in the Define Consolidation Area page. See Define Consolidation Area page.
This prefix is used by the system to compose the journal numbers of the journals generated by the financial investment reclassification. It is essential to enter the same prefix as the source consolidation scenario/period from which the carry forward is being carried out for the following reasons:
- To allow the system to generate the same journal header every year.
- To determine the consolidation scenarios, from among those associated with a given original scenario, to be processed for the reclassification of financial investments.
Composition of consolidation data processing¶
Consolidation data processing is divided into basic consolidation operations (see Details on basic consolidation data processing) and advanced consolidation operations (see Details on advanced consolidation data processing).
Account reclassification and NER execution plans¶
The execution plans allow you to relate a node of reclassification logics, from among those present, to a scenario/period/entity triplet. The logic can be related to an Entity or node of Entities for the chosen scenario/period.
Plug account¶
The plug account is used as a balancing account for the entity in the consolidation journals. It allows you to obtain a balanced BS for the entity. The general rule for the plug account is defined in the Setup and Admin > Data Processing tile > Advanced Consolidation > Plug account rules page Navigation panel > Data Processing > Advanced Consolidation > Plug account rules page (see ). Some of the generic rule settings can then be overridden when defining a specific process (see Advanced consolidation page).
Equity pick-up¶
Equity pick-up (EPU) data processing is an accounting technique that allows you to revalue the value of an owner entity’s financial investments based on the current value of the corresponding portion of the owned companies’ net equity.