reporting on percent ownership

7/25/2019 Reporting on Percent Ownership

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Reporting on Percent Ownership in System 9

Financial Management

Created by: Danny Tijerina

Advanced Technology Group



Table of ContentsIntroduction:................................................................................................................................ 3

Overview:.................................................................................................................................... 4Solution:...................................................................................................................................... 5

Method:....................................................................................................................................... 6

Sub Calculate call: ...................................................................................................................... 7Conclusion: ................................................................................................................................. 8

Ownership rule:........................................................................................................................... 9



Introduction:

Many of our customers utilize the statutory consolidation feature within System 9 Financial

Management. Although it works efficiently and effectively there is not an easy way to report on

the Percent Ownership “[POWN]” or Percent Consolidation “[PCON]” accounts. The reason

for this is the point of view of the data element.

Example:

Company A owns 80 % of Company B.

Point of view for the ownership element

E#Company A.V#[None].A#[POWN].I#Company B.C1#[None] .C2#[None] .C3#[None] .C4#[None]

In the above point of view Company A is represented as the entity and Company B is

represented as the ICP member. In some cases the owned entity could be a parent member and isnot flagged “IsICP” in the metadata attributes for entity.

Therefore, trying to create a report or grid to show these accounts is not easy or intuitive.



Overview:

System 9 Financial Management provides a system defined “Ownership Management” grid.The “Ownership Management” grid is based on the entity hierarchy and allows input of

ownership percentages and consolidation methods. Note: If the hierarchy you are working withdoes not have a direct Parent\Child relationship for Affiliates (minority owner) this solution will

not work.

Even though the “Ownership Management” grid is based on the entity hierarchy the entities inthe grid are represented as “ ICP” members within the data element as follows:

The point of view for “OWN20” in the above grid:

Format: Account, ICP, Custom1, Custom2, Custom3, Custom4



Solution:Transfer the percent ownership, percent consolidation and consolidation method amounts into a

new account with the point of view of “E#ParentEntity.ChildEntity” in the “[Proportion]” member of the value dimension.

By creating this relationship between the “E#ParentEntity.ChildEntity” in the “[Proportion]”

member of the value dimension the reporting becomes very easy.



Method:

Create new accounts to store percent ownership, percent consolidation and consolidation

methods. Naming convention is important since the rule uses the variable for “ Method ” topopulate the appropriate account. Therefore, the accounts used for methods must match the

methods created in the “Consolidation Methods” section of the metadata attributes.

POWN – Percent Ownership

PCON – Percent Consolidation

SUBSIDIARY – Consolidation Method Subsidiary

EQUITY – Consolidation Method Equity

GLOBAL – Consolidation Method Global

Create new rules to transfer the percent ownership, percent consolidation and consolidation

method amounts to the new accounts in the “[Proportion]” member of the value dimension of

the entity “Parent” and “Child” combination. This rule was created in a separate subroutine.

The subroutine is then called into the Sub Calculate routine. (See complete rule on the last page)

POwn is a variable used to hold the percent ownership using the HS.Node.POWN function. This is the actual number (example: 0.8 = 80%)

PCon is a variable used to hold the percent consolidation using the HS.Node.PCON function. This is the actual number (example 1 = 100%)

Method is a variable used to hold the percent ownership using the HS.Node.Method

function. This is a text string that is equal to the consolidation method (example: Equity)

Using the “pov_parent” and “pov_entity” combination in the rule allows this to work for all

hierarchies within the application. Since Parent\Child is being used you will not need to flag allentity members with “IsICP” .

To populate the new accounts “POWN” and “PCON” the amount held in the variables aremultiplied by 100 to show the true percent.

Since the variable “Method” pulls in a text string it is used to identify the account.



Sub Calculate call:

This pulls in the Ownership subroutine and passes the variables “pov_parent” and “pov_entity”

into the subroutine.

The rule is run for the value node “[Proportion]” only. Even though this rule is in the Sub

Calculate subroutine it will only run during a “Consolidation” or a “Calculate Contribution”

process because it populates the “[Proportion]” node.

Variables used in above rule:

The key to making this work is the following:

The percent ownership, percent consolidation and method amounts will show in the

“[Contributeion]” node, but will not roll into “<Entity Currency>” of the “Parent” .



Conclusion:

This method will allow reporting on the percent ownership, percent consolidation and methods

with Hyperion System 9 Financial Reports, Smart View as well as Financial Management Data

Grids and Web Forms. Since the amounts do not consolidate they will not aggregate, the

amounts will only be stored in the “[Proportion]” node of the Parent\Child combination. If thereare multiple hierarchies there can be different amounts in the percent ownership, percent

consolidation and methods accounts.



Ownership rule:

reporting on percent ownership

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