Proportional consolidation is a way of consolidating data from jointly controlled entities to the consolidated financial statements of the group. In proportional consolidation, you can enter full data (as in the accounting) for the units, but only the portion corresponding to the group's ownership percentage is included in the consolidated reports. The percentage may change by period, and it can be set for the units in Units (Consolidation percentage field).

It is also possible to report the 100% data and recalculate the consolidation entries for example, when the consolidation percentage has been updated after the data has been saved. Consolidation entries adjust total amounts to exclude portion of other owners. For document series of type 1, the consolidation entries are recorded on document series of type 3, when there is a dependency between the series. If no dependency exists, the consolidation entries are not created.

The proportional consolidation calculation is performed for all input units in the selected data type and year which use the Proportional consolidation consolidation method. Proportional consolidation entries are created for all accounts that include input data for the selected units. The account type is not relevant. The input type of proportional consolidation entries is 3. The default calculation is applied to all input accounts, that are not defined in specific rules for the calculation. Only supported specific calculation type for proportional consolidation is for Opening balance calculation.

Proportional consolidation entries are recorded to the source account itself according to ownership of the opening period (period 0). Difference to amount calculated according to the consolidation percentage of the period is recorded to the target account set in the proportional consolidation definitions. For accounts not included in the definitions, the same account is used as the source and target account, and the amount is based on the consolidation percentage of the period.

Internal transactions

All internal transactions are affected by proportional consolidation calculations. For unit pairs in which one of the units (unit or counter unit) is consolidated with the proportional consolidation method, the elimination is calculated using the consolidation percentage of the proportionally consolidated unit (full amount multiplied by -1 and by [100 - consolidation percentage of the unit]). If both units of the unit pair are proportionally consolidated, the elimination is calculated according to the lower consolidation percentage.

For document series type 2, the consolidation entries are saved to document series of type 23 when there is a dependency between document series type 2 and 23.

Note! It is not possible to enter data manually to type 23 document series.

Internal inventories

If the proportionally consolidated unit reports internal inventories or a unit reports internal inventories bought from proportionally consolidated unit, the internal margins must also be calculated using the consolidation percent. The proportional consolidation calculations are performed using the result from the inventory calculations as the input data. The consolidation entries are saved to the same document.