Reporting on Percent Ownership

Reporting on Percent Ownership in System 9 Financial Management Created by: Danny Tijerina Advanced Technology Group

Table of Contents Introduction:................................................................................................................................ 3 Overview:.................................................................................................................................... 4 Solution:...................................................................................................................................... 5 Method:....................................................................................................................................... 6 Sub Calculate call: ...................................................................................................................... 7 Conclusion: ................................................................................................................................. 8 Ownership rule:........................................................................................................................... 9

Introduction: Many of our customers utilize the statutory consolidation feature within System 9 Financial Management. Although it works efficiently andeffectively there is not aneasy 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 bea parent member and is not 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 with does 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 in the 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” to populate 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)

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

 PCon is a variable used to hold the percent consolidation using theHS.Node.PCON function. This is the actual number (example 1 = 100%)  Method is a variable used to hold the percent ownership using theHS.Node.Method function. This is a text string that is equalto 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 beingused you will not need to flag all entity members with “IsICP”. To populate the new accounts“POWN” and “PCON” the amount held in the variables are multiplied 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 “” 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 there are multiple hierarchies there can be different amounts in the percent ownership, percent consolidation and methods accounts.

Ownership rule: