Hi Everyone,
We have the following requirement to meet in HFM. Request to please help with the approach to meet the requirement.
- To develop a subroutine or subroutines that effectively eliminates the dividend income between unrelated parties without causing Balance Sheet imbalances.
- The rule(s) must work across periods and must also continue to work when there are changes in ownership of the entities involved in receiving/paying dividend when they are unrelated.
Background:
In HFM up to July 2018, the dividends received/paid had been between companies with parent/child relationship in HFM. The HFM rules are designed to eliminate this type of dividend in subroutines RO_DivReceived_YTD and RO_Consolidate
Prior to Aug month-end, a new account, 6665_015 was added to our HFM App. This account is an exception because it is supposed to eliminate in consolidation. Rules was changed to accommodate this exception and the rule update is given below. Rule was Tested & worked in TQA. Promoted to PROD for Aug month-end and worked. However, didn’t work for Sep month-end.Once we moved onto September and upon consolidation, the Balance Sheet was out of balance due to the dividend incomes recorded in August to account 6665_015 .
In August 2018, the following rule update was made to the subroutine RO_Consolidate:
If sAccountUD3= "DIVIDEND1" Then
' Component Name = Dividends Received by companies with no ownership data with the company paying the dividend
If ( sCustom3 <> "MOVEMENT" ) Then
HS.Con "V#[Elimination].C3#Elims_Dividend.A#" & sAccount & ".I#" & sICP & ".C1#" & sCustom1 & ".C2#" & sCustom2 & ".C4#" & sCustom4,nPCon*- 1,""
HS.Con "V#[Elimination].C3#Elims_Dividend.A#BalSys.I#" & sPOVEntity & ".C1#" & sCustom1 & ".C2#" & sCustom2 & ".C4#" & sCustom4,nPCon,""
End If
End If
I removed the sMethod=”SUB”, “PARTNER”, “HOLDING” or “ELIM2” with the goal of eliminating any dividend income recorded in the newly created account 6665_015 to record dividends between unrelated parties. Please also note that the UD3=DIVIDEND1 was also created to isolate these dividends and call them in the subroutine above.
The update to the rules and reclassification to the newly created account 6665_015 successfully eliminated the dividend income between unrelated parties. This was tested by Financial Reporting and was rolled out to HFM Production for August month end close which was successfully closed with no issues.
Once we moved onto September and upon consolidation, the Balance Sheet was out of balance due to the dividend incomes recorded in August to account 6665_015 .
Cheers