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EGL: General Information About Equitization And Frequently Asked Questions (Doc ID 1096413.1)

Last updated on FEBRUARY 14, 2022

Applies to:

PeopleSoft Enterprise FIN General Ledger - Version 8.4 to 9.2 [Release 8.4 to 9]
Information in this document applies to any platform. **** ****


The purpose of this bulletin is to provide general background on how to setup Equitization and how it works.  If also covers some general questions. 

This information will be of interest to implementation staff who are responsible for setting up Rules for Equitization processing.

The user will need a good understanding of equitization and the organization's structure and how the ChartField values are defined for all business units involved in the Equitization processing.

For more information refer to the latest General Ledger PeopleBooks.

Also review the referenced documents linked to this document for other equitization information.

Questions and Answers

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In this Document
Questions and Answers
 1.  What is the Purpose of Equitization?  
 2.  How many journals should be created?
 3.  For minority interest in Equitization, does each owner have to be using the same detail in their journals?
 4.  Why are ownership sets and ledger sets only under consolidation? 
 5.  We use multiple GL accounts for Investment in Subsidiary. That is, the Investment-in-Sub account could have a separate asset account number for each sub under each parent. So if a parent has 3 subs, it could have 3 different GL accounts for Investment in Sub.    Can this be accommodated by using a different equitization rule for each subsidiary / account where each rule has its own CF Value set and the BU is part of the CF Value Set, and putting all the rules into a single group?
 6.  Our subsidiary ownership percentages are constantly changing.   How can we setup equitization to properly calculate the required equitization journals based on the ownership percentage by period?
 7.  What isn't period 0 picked up by equitization?
 8.  Equtization always uses year to date and then requires a reversal into the following month.  We would like to select to have equitization calculate by period instead and not generate a reversal.  How can we set this up?
 9.  Can elimination business units be used as a parent or subsidiary business unit for equitization purposes?
 10.  GLPQEQTZ fails with error of 'INITIATED' or 'PROCESSING' but no longer running  when transaction inlcudes multiple currencies.  In looking closer at the trace we see:  failed with attempt to divide by zero.
 11.  My new subsidiary  gets picked up, but the equitization elimination gets booked to a different elimination business unit than I expected it to be booked to.  How does the system know where to book the journal entry?
 12.  Can we exclude affiliate from journals generated for the target output for investment / investment offset?

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