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Similar in function to the Dynamic Hierarchy Editor available in BPC 7.x versions, the SAP Business Objects Planning and Consolidation 10.0, version for Netweaver (BPC10NW), Ownership Manager allows the definition of complex holding/subsidiary relationships that can be time, category, and scope specific.  The organizational structures defined by Ownership Manager are also used by the Consolidation Monitor and the Controls Monitor to display and status the defined organizational levels.

New to the Ownership Manager functionality is the ability for the BPC system to propose key consolidation parameters. 

There are three main prerequisites for activating system calculations for ownership manager:

 

1. Model and Master Data requirements

 

Ownership manager functionality requires a configured ownership manager model as defined by : 

Ownership-based Hierarchy Requirements

Summary requirements:

 

 

Required member ids in the O_ACCOUNT (ownership model account) dimension:

METHOD

METHOD_SYS is populated by the system to store the generated proposal for the consolidation method

 

PCON

PCON_SYS is populated by the system to store the generated proposal for the consolidation rate

 

POWN

POWN is also known as the ultimate percent ownership of an entity by the holding company. It is the calculated share percentage based upon a specified calculation method (Direct Share or Group Share).  For the Direct Share calculation, the percent ownership is assumed to be 100% of the subsidiary ownership.  For Group Share calculations, the percent ownership is the product between the various subsidiaries percentages. 

Example:

Holding Company (H1) owns 70% of subsidiary (S1) and S1 owns 50% of subsidiary S2.

Using the Direct Share method, the ultimate percent ownership of S2 is 50%.

Using the Group Share method, the ultimate percent ownership of S2 is 35% (=70%x50%).

directly or indirectly

 

PCTRL

PCTRL identifies the ultimate percent of control for each entity in a model. 

 

Member ids used internally during Ownership Manager Calculations

METHOD_SYS

METHOD_SYS is populated by the system to store the generated proposal for the consolidation method

 

PCON_SYS

PCON_SYS is populated by the system to store the generated proposal for the consolidation rate

 

POWN_SYS

POWN_SYS is populated by the system to store the generated proposal for the financial interest rate, or percent shares owned. Shares Owned contains the number of shares and voting shares that an entity owns of another entity.

 

PCTRL_SYS

PCTRL_SYS is populated by the system to store the generated proposal for the percent of subsidiary control

 

 

Required O_ACCOUNT Dimension Properties 

The IS_INPUT property for the O_ACCOUNT dimension identifies the dimension members which can be displayed in the Ownership Manager hierarchy display.

 

 

2. A Defined Method Business Rule:

 OWNERSHIP_BLOG_100 

The Method Business Rule table supports the Ownership Manager calculations by identifying a relationship between a range of shares allowing a system derived consolidation method (METHOD) as well as a proposed Financial Interest Rate (PCON):

  • indentifying source accounts
  • Indentifying target accounts
  • Indentifying source flows
  • Indentifying target flows 

 

Note the unique syntax for identifying the share ranges. 

0.20<,<=0.49 is interpreted by the system as a range definition:  “any value greater than 20%, through any value less than or equal to 49%”.

0.50<,<=1.00 is interpreted by the system as a range definition:  “any value greater than 50%, through any value less than or equal to 100%”.

 

 

 

3. Implementing a Cross Ownership Matrix

 

Automatic ownership calculations require additional information to allow the ultimate ownership share ownership values.  An input schedule providing details on Percent Control and Percent Ownership data must be provided by entity and intercompany partner.  Data is saved to the OWNERSHIP model.

In the following example:

– Germany controls 80% of a UK subsidiary, and the UK subsidiary controls 60% of a French subsidiary

– Germany owns a 70% share of a UK subsidiary, and the UK subsidiary owns a 50% share of a French subsidiary

 OWNERSHIP_BLOG_200

 

 

Note: Share and control data must be entered without any scope (group) specification (i.e.: S_NONE). 

 

 

Once all prerequisites have been completed, the user can request system generated ownership manager calculation through the CALCULATE option available in the edit mode of the ownership definition:

 OWNERSHIP_BLOG_300

User can select the accounting principle for calculating the ultimate ownership and control (Direct or Group share methods).

 

Checkbox options allow the user to update the “Current” sub column values for Method, Percent Consolidation, and calculated ownership percentages.

 

 

 

A graphical illustration of the data flow between the three prerequisites:

OWNERSHIP_BLOG_400 

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3 Comments

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  1. LOKESH NANDULA
    This automation is very useful when we calculate ownership data for large list of legal entities within the group. Also the option to manually edit the current coulmns after the system generated proposals are accepted is a huge plus. Copy of ownership structure to another data region is really cool.

    Would be useful if we have a standard template of input schedule to feed details on Percent Control and Percent Ownership data by entity and intercompany partner. And this schedule should freeze the Scope to S_NONE by default.

    I presume the need for PCON_SYS account inaddition to PCTRL_SYS account is only to differentiate the consolidation rate between Direct or Group share methods.

    Any inputs on the second option ‘Calculate Method or % Consolidation or both based on previous calculation’. How/Where to use it?

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  2. Ariel Linetzky

    Hi Sheldon, Could you help me with the follow question that I have What happened if I have two additional method (leaving during the year and leaving last year), how I have to configure the share range? Regards Ariel

    (0) 

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