EGL: Upper Level Equitization Results Are Not the Same As Lower Level Results When Equitization Target Is A Translation Ledger In Multi-book With Keep Ledgers In Sync
Last updated on JANUARY 02, 2018
Applies to:PeopleSoft Enterprise FIN General Ledger - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.
Running equitization generates inconsistent results when running equitization on Multi-book with Translation ledgers kept in sync. We run different regional results by limiting the process to certain business unit using certain tree nodes in the equitization run control.
We ran Equitization in GBP as a prototype (test environment) for some lower level subsidiaries. The GBP entry created on the parent entity was calculated correctly. However, this entry generated USD amounts in the business unit’s USD translation ledger using the month end exchange rate. The lower level subsidiaries’ USD translation ledgers had Profit & Loss(P&L) balances from journals created over the course of the month using daily exchange rates, which of course did not match the equitization in the parent’s USD ledger. Once GBP equitization was complete, we ran equitization in USD on the USD parent. While the journal created had appropriately summed the USD P&L balances of its subsidiary, the USD amount did not match what was in its lower level subsidiaries.
Steps to Replicate:
1. Create ledger activity using multibook ledger group with secondary translation Ledgers.
2. Setup/Create Equitization rules making sure to mark create elimination on the minority interest page and put rules into an equitization group
3. Run Equitization request
4. Review equitization output and the parent results are created with the wrong sign and the elimination lines that are created have the same sign as the parent results...so the two do not offset
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