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Chris-B's avatar
Chris-B
New Contributor II
3 months ago

Org-by-period Consolidation | Eliminations

Good Day,

In order to implement Org-by-period Consolidation, you need to set the Consolidation View to Periodic so that the correct Share for e.g. the income statement can be calculated for only the period for which an entity was consolidated to a parent.

The guidance is clear that "When Consolidation View is set to Periodic and no data is loaded to the IC Accounts for
a specific month, custom Elimination rules are required". I assume this is because of built in zero suppression settings on the Elimination data buffer.

However, here is what is strange to me and I'm not sure if I'm missing something.

When setting the Consolidation View to Periodic and note that No Data Zero View is set to YTD as data is loaded YTD, for any entity, there is a problem with eliminations as follows:

When loading 100 000 in January, the full 100 000 is eliminated. If you load 100 000 again YTD in February, nothing gets eliminated. If you load e.g. 100 000.01 YTD in February, then the full amount gets eliminated again.

So it seems that custom Elimination rules are not only required when no data is loaded to the IC Accounts, but also if the data loaded in the next month is the same as the prior month?

Consolidation
  • KarlT's avatar
    KarlT
    Contributor III
    3 months ago

    Hi Chris, Do you have any change in the ownership of the entity or IC partner in Feb with your example?

    • Chris-B's avatar
      Chris-B
      New Contributor II
      3 months ago

      Hi,

      No changes in ownership. Doing regression testing on an entity where ownership didn't even change. 

      From OneStream support this is because even if data is loaded YTD, because there is no movement periodically, there will be no elimination.

      So basically what is in the guide: If a Consolidation View is Periodic and no data is loaded to the IC accounts for a specific month, custom elimination rules are required in the FinanceFunctionType.ConsolidateElimination section of a business rule attached to the cube to calculate expected elimination results. This requires storaging the C#Share member, which impacts overall consolidation performance"

      However, the sentence is incomplete in the guide, because we have data loaded, just in YTD. So they should state that "...no data is loaded in periodic view to IC accounts...." or something.

      The system behaviour is completely illogical to me where you are loading data YTD. As most entities load actuals YTD and would require org-by-period. So saying that you need custom rules to make this work, makes the org-by-period consolidation algorithm redundant.