Creating Consolidated Financial Statements using Management Reporter – owning less than 100% of a subsidiary (Part 7 of 7)
At times, a company only owns a percentage of another company. In this situation, when producing a consolidated report, it is important to only account for the percentage of ownership you own. Management Reporter uses the Rollup % in the Reporting Tree Definition, and setting this up is outlined in this blog post (the last in a series of blogs on consolidations).
- Part 1 contains an overview of consolidating data across one or multiple Dynamics ERPs with the same chart of accounts and same fiscal periods.
- Part 2 describes consolidating across one or multiple Dynamics ERPs with different chart of accounts.
- Part 3 defines the process for consolidation across one or multiple Dynamics ERPs with different fiscal periods.
- Part 4 is focused on reporting with multiple Dynamics AX 2009 instances (AOS).
- Part 5 will show you how to report on consolidation data that resides in non-Dynamics ERPs.
- Part 6 will discuss how to produce a consolidated report in Management Reporter that includes a column for elimination entries.
- Part 7 will focus on scenarios where a company does not own 100% of a subsidiary.
In the Reporting Tree Definition, enter the % of ownership in column K, Rollup %, and when the report is generated, that percentage will be used to calculate the consolidated amount. In this example, Contoso only owns 80% of Contoso Denmark. The user can enter 80 in the column, or .8 and 80% will roll up to the consolidated level.
NOTE: You can apply this ownership percentage to any reporting unit, not just at the company level. This is helpful when ownership is at a business unit or division level, not just a legal entity.
At report generation, Contoso Denmark shows its full amount in the report for Contoso Denmark, and only 80% of it is allocated to the consolidated node. In the following example, at the consolidated level for Sales, you can see only 80% shows.
NOTE : For the month of June, Contoso Entertainment did not have any Sales, so Sales only reflects Contoso Denmark in this case.
If you own less than 1% of a company, select “Allow rollup less than 1%” in the Additional Options tab of the Report Settings form, and then the rollup % in the reporting tree will be treated as less than 1%. For example, if the setting is selected, then .8 would .8%, not 80%. Alternatively, you can also enter .008 and leave the setting cleared.
The series of blogs has covered the many different consolidation scenarios that a company faces during the reporting process. From multiple Dynamics ERPs, to different charts of accounts, to ownership percentage, Management Reporter is designed to fit your consolidation reporting needs.