Use the equity consolidation method with Advanced Ownership Consolidation

Assigning a user-defined book to an ownership structure is permanent. You cannot remove the user-defined book from the ownership structure after adding it. If you need to use a different user-defined book for a given structure, delete the ownership structure, create a new one, and select the correct user-defined book.

Learn more about creating a user-defined book.

1. Go to Consolidation > Setup > Ownership structures.
2. Select Add to add a new ownership structure. Alternatively, select Edit next to the ownership structure you want to edit.
3. Enter a meaningful name and description for the ownership structure.
4. From the User-defined book for equity method dropdown list, select the user-defined book you want to use to record equity entries for this ownership structure.

   Alternatively, select Add to add a new user-defined book for the ownership structure.

5. Activate the ownership structure by selecting the Active status.
6. Ensure that Enable inter-entity auto-elimination is selected.
7. Optionally, select Eliminate by affiliate entity to eliminate using the affiliate entity dimension.
8. Select Save to save the ownership structure.

1. Go to Consolidation > Setup > Ownership structures.
2. Select +Create to add a new ownership structure. Alternatively, select More > Edit next to the ownership structure you want to edit.
3. Enter a meaningful name and description for the ownership structure.
4. From the User-defined book for equity method dropdown list, select the user-defined book you want to use to record equity entries for this ownership structure.

   Alternatively, select Add to add a new user-defined book for the ownership structure.

5. Activate the ownership structure by selecting the Active status.
6. Ensure that Enable inter-entity auto-elimination is selected.
7. Optionally, select Eliminate by affiliate entity to eliminate using the affiliate entity dimension.
8. Select Save to save the ownership structure.

1. Add or edit a period:
   • To add a period: On the Ownership structure periods page, select Add new period.
   • To edit a period: On the Ownership structure periods page, select Edit next to the period you want to edit.
2. On the page for the new or edited period, select a Reporting period effective start date by doing either of the following: 
   • Choose a period from the dropdown list.
   • Enter a date in the dropdown list to filter for it.
3. Optionally, enter a Comment about the period in the space provided.
4. If you’re adding new period data to the ownership structure, you can copy data from an earlier period by selecting Populate from prior period.

   If there are no earlier periods, skip this step.

1. Add or edit a period:
   • To add a period: On the Ownership structure periods page, select +Create.
   • To edit a period: On the Ownership structure periods page, select More > Edit next to the period you want to edit.
2. On the page for the new or edited period, select a Reporting period effective start date by doing either of the following: 
   • Choose a period from the dropdown list.
   • Enter a date in the dropdown list to filter for it.
3. Optionally, enter a Comment about the period in the space provided.
4. If you’re adding new period data to the ownership structure, you can copy data from an earlier period by selecting Populate from prior period.

   If there are no earlier periods, skip this step.

On the Parent entities tab, select the subsidiary entities for the ownership structure period. You can always change the consolidation method in the same period or in a different period.

You can use the same or different accounts for parent-subisidary relationships in any ownership structure period, depending on your reporting needs.

Define accounts as follows:

• Investment accounts must be non-closing accounts.
• Subsidiary revenue accounts must be closing accounts.

1. Under Parent entity, select a line and choose a parent entity.
2. Select Show details to select subsidiary entities and ownership percentages.
3. Select Equity as the consolidation method for the relevant subsidiary entities.
4. For each entity where you select Equity, in the Ownership accounts column, select Show accounts.
5. Enter the Investment in subsidiary account and Subsidiary revenue account for each entity that uses equity method.
6. Select Save.
7. Repeat these steps for each subsidiary entity that uses the equity consolidation method.
8. Enter consolidation rules as needed. For more information, see Field descriptions: Ownership structure periods and Consolidation rules.
9. Select Save as draft or Activate.

If you have not already done so, enable the affiliate entity dimension as follows:

• Reclassify data with the affiliate entity dimension and consolidate
• Set up the affiliate entity dimension