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SaraB's avatar
SaraB
New Contributor III
2 years ago

Consolidation with cascade entity structure

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 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

Finance
  • SaraB's avatar
    SaraB
    2 years ago

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

    Thank you!

  • JackLacava's avatar
    JackLacava
    Honored Contributor
    2 years ago

    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's avatar
    EricOsmanski
    Valued Contributor
    2 years ago

    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's avatar
    SaraB
    New Contributor III
    2 years ago

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

    • EricOsmanski's avatar
      EricOsmanski
      Valued Contributor
      2 years ago

      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's avatar
        SaraB
        New Contributor III
        2 years ago

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

        Thank you!

    • JackLacava's avatar
      JackLacava
      Honored Contributor
      2 years ago

      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.