Elimination of Income from Investments

Getting Started

Global Functions

Administration

Extended Planning & Analysis (xP&A)

Consolidation & Financial Planning

User Interface of Lucanet Consolidation & Financial Planning

General Functions

Basic Configuration

Dashboards

Reporting & Analyzing

Import and Journals

Planning

Consolidation

Consolidation 1

Consolidation 2

All Steps at a Glance

Basic Elements

Defining the Group Structure

Administrating Master Data

Creating Consolidated Financial Statements

Creating and Configuring Data Transfer and Proportioning

Creating and Configuring Consolidation Apps

Debit/Credit Shifts in Consolidation Areas

Elimination of Income from Investments

Elimination of Intercompany Income and Expense

Elimination of Intercompany Debt

Equity Elimination

Reclassification of profit or loss from previous year in consolidation areas

Elimination of Intercompany Profit or Loss in Current Assets

Notes on Migration from Lucanet.Financial Client

Adjust and Reclassify Values in Consolidation Areas

Executing the Consolidation

Dimensions

Excel-Integration

Workspace Configuration

ESG Reporting

Disclosure Management

XBRL Tagger

Lease Accounting

Banking & Cash Management

Data Collection

Tax Compliance & Reporting

Glossary

The goal of the app for Elimination of income from investments is to automate the elimination of investment income recorded by the parent company against the subsidiary's dividend distributions or profit transfers in the same period.

Elimination can be executed per period or accumulated across several periods.

Non-controlling interests can be considered. They are considered based on the ownership interests stored in the master data or based on individual specifications made on the app interface.

To configure the app for the Elimination of income from investments, click the app in the structure view and click Edit in the displayed dialog.

Configure the steps as described below.

In the Settings step, specify the general settings for the configuration:

These are the settings of income from investments. — 'Settings' step

Per month

The app eliminates intercompany transactions in each month of the consolidation period and creates monthly elimination postings.

Accumulated at the end of the period

The app cumulatively eliminates intercompany transactions in the last month of the consolidation period and creates an accumulated elimination posting only in the last month of the consolidation period.

For any consolidation unit deconsolidated in the consolidation period, an accumulated elimination will be performed in the last month of the consolidation unit's inclusion in the consolidation area.

Profit or loss transfers

To eliminate profit or loss transfers between investment and investor in the same period

Distributions from retained earnings

To eliminate distributions from retained earnings in income and equity

The consolidation areas and/or units that the elimination is to be performed for.

By default all consolidation areas and units of the group are included.

If you only want to include certain consolidation areas and/or units, activate the Individual selection check box and select one of the following options:

Include

In the table, select individual consolidation areas and/or units to be considered.

Exclude

In the table, select the consolidation areas and/or units that are to be excluded.

In the Adjustment levels step, specify the adjustment levels that should be taken into account for the elimination.

The app also carries out postings at adjustment levels that are locked for other postings.

This is the adjustment level step of income from investments. — 'Adjustment levels' step

Adjustment level group including all non-consolidation adjustment levels for data imports and postings you want to include in the elimination.

Please ensure that the adjustment level for proportioning is included in the adjustment level group.

Adjustment level for consolidation postings to be used for the postings.

In the Elimination step, specify how to deal with income from investments.

This is the elimination step of income from investments. — 'Elimination' step

The investor's accounts and/or items for eliminating income from distributions or profit/loss transfers received

Account and transaction type for posting elimination differences

The account itself may not contain intercompany transactions to be eliminated.

Deviating values

If you want to define different accounts or transaction types for certain intercompany relationships, activate the option Advanced settings.

After that, in the Intercompany relationship column, select the two related companies for which you want to define different values and configure a deviating account and/or a deviating transaction type.

The Profit or loss step is only displayed if you chose Profit or loss transfers as elimination option in the Settings step:

Shows the 'Profit or loss' step — 'Profit or loss' step

Configure the following details for the elimination of profit or loss transfers:

Accounts and/or items of the investment that contain the amounts of the profit or loss transferred to be eliminated

Activate this option if you want to recognize compensation payments to non-controlling interest and choose the accounts and/or items that contain the compensation to other investors.

Compensation payments recognized on the chosen accounts and/or items will be reclassified to profit or loss attributable to non-controlling interests in the statement of profit or loss.

Account that the profit or loss from non-controlling interests is to be posted to

The Distributions step is only displayed if you chose Distributions from retained earnings as elimination option in the Settings step:

Shows the 'Distributions from retained earnings' step — 'Distributions from retained earnings' step

Configure the following details for the elimination of distributions from retained earnings:

The investment's

accounts and/or items

in equity

Transaction type

on which distributions are posted. Only distributions posted on this transaction type will be eliminated.

Activate this option if you want to configure the attribution to non-controlling interests and choose the account for adjusting the non-controlling interests in equity.

Master data

If you choose this option, the ownership interests defined in the

master data administration

will be used to calculate the adjustment of non-controlling interests.

Individual configuration

If you choose this option, an individually configured percentage value or an absolute amount will be used for the adjustment of non-controlling interests.

Use the displayed table to specify the share of distribution that will be attributed to non-controlling interests per investment.

For all other investments that are not configured in this table, the ownership interests defined in the

master data administration

will be used.

In the Report step, enter the consolidation area(s) that a report on the elimination of income from investments is to be created for, if necessary. The report shows the created elimination postings with any differences and the reclassifications to non-controlling interests.

This is the report step of income from investments. — 'Report' step

Activate the option to create a report on the difference amounts when executing the app.

Consolidation areas for which the report should be generated

The report can only be created for consolidation areas that were included in the Settings step for the app execution.

As long as a step has not been fully configured and/or configuration errors exist, it is displayed with a red exclamation mark

Once a step is configured completely and without any errors, it is displayed with a green check mark

You can close the configuration dialog by clicking the arrow icon

at the top left.

To change the name of the app, select the app in the tree view and choose

Properties

from the context menu.

You can execute the app for the Elimination of income from investments either separately, together with other apps in an executable folder or as part of consolidated financial statements.

How to proceed in each case is described under Execute consolidation.

On the Created elements tab, the postings that were created during the app execution are shown.

The table provides the following information:

Type

of the element

Path

under which the element was created When you click on the link, you are taken directly to the posting in the relevant

journal

or to the report.

Date of the

last execution

that created the element

Shows the 'Created elements' tab of a Consolidation app — Tab 'Created elements'

If necessary, you can delete all elements.

Note: Once all elements have been deleted, the state of the wizard is Not executed again.

The App properties are displayed on the tab of the same name:

Shows the 'Properties' tab of a consolidation app — 'Properties' tab

The following App properties are displayed:

Type

of the element

Function of the

App

Version

of the element.

New available version

As soon as a new version of the app is available that contains changes to the app configuration and/or the calculation logic of the app, the Refresh command is displayed, allowing you to update the app to the latest version.

Information about the changes to each version can be found in the Release Notes, which can be accessed via the link of the same name.

We strongly recommend to update all apps to the new version as soon as possible because it cannot be guaranteed how long an app with an obsolete version can be executed.

Last updated on Aug 16, 2023

Elimination of Income from Investments

Overview

Configuring the Elimination of Income from Investments

Executing the Elimination of Income from Investments

Displaying and Deleting Created Elements

Displaying the App Properties

Elimination of Income from Investments

Overview

Configuring the Elimination of Income from Investments

Settings

Create postings

Elimination options

Consolidation area and/or unit

Adjustment levels

Basis

Target

Elimination

Income from investments

Post differences

Advanced settings

Profit or loss

Eliminate profit or loss transfers

Configure compensation to non-controlling interests

Profit or loss attributable to non-controlling interests

Distributions

Eliminate distributions from retained earnings

Non-controlling interests

Adjust non-controlling interest based on

Report

Create report

Consolidation areas included

Executing the Elimination of Income from Investments

Displaying and Deleting Created Elements

Displaying the App Properties

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