Consolidation with cascade entity structure

SaraB
New Contributor II

Hi,

We have a cascade entity structure, where one of the sub-elements consolidates up to a certain period, and after that period the other begins to consolidate.

entity_structure.png

Entity A1 has an investment in Entity B11.

Consolidating 2019M12, the application calculates an elimination of consolidated reserves in both parents Entity B1 & Entity B2, regardless of the fact that Entity B2 does not consolidate until 2022M8.

I would like to know if anyone else has had a similar problem and has been able to solve it.

Thank you,

Sara

1 ACCEPTED SOLUTION

SaraB
New Contributor II

The problem was in the section "Second Pass Elimination", all the other sections were OK.

Thank you!

View solution in original post

6 REPLIES 6

JackLacava
Moderator
Moderator

Are you using the Org-By-Period option as Consolidation Algorithm Type in your Cube Properties (section Calculation)? It seems like a classic case for it. As long as the consolidation percentage for B23-B11 in the earlier periods is not 100%, that algorithm should ensure that elimination doesn't happen.

EricOsmanski
Valued Contributor

There are other implementation specific considerations, but for this particular question you will need to use the Cube Consolidation Algorithm Type of "Org-By-Period Elimination". You can read about this more in the Design and Reference guide but here is the additional information:

"When determining if the data cell's IC member is a descendant of the Entity being consolidated, this option considers the position in the Entity hierarchy and also checks the percent consolidation for every relationship down the hierarchy. If a percent consolidation is zero, the IC member is determined to not be a descendent of the entity."

In comparison, the standard elimination (hierarchy elimination) only considers the position of the Member in the Entity Dimension hierarchy. Standard elimination is the default approach and does not consider Percent Consolidation.

SaraB
New Contributor II

No, we are using the Custom option as Consolidation Algorithm Type

EricOsmanski
Valued Contributor

If using Custom, then BR's will need to be written to calculate the Share and Elimination nodes as this indicates you do not want to use any of the built in Consolidation Algorithm Types.

SaraB
New Contributor II

The problem was in the section "Second Pass Elimination", all the other sections were OK.

Thank you!

Then you have to do everything yourself in rules, i.e. checking ownership and consolidation percentages for the specific relationship at the specific time in your "Consolidate Elimination" case block.