Using the Budget Eliminations utility

The Budget Eliminations utility allows you to configure and process elimination entries for planned inter-company balances for a budget. It can also handle the consolidating entries for minority interest in the net assets of subsidiaries.

With this utility, you can add and process interest, non-interest, and balance sheet eliminations to the budget database. This utility processes three elimination category types:

• Income Statement Elimination - Interest: Eliminates interest income, expense, and associated yield reporting records for DTYPE, INT, and ANNINT.

• Income Statement Elimination - Non-interest: Eliminates non-interest income and expense.

• Balance Sheet Elimination: Eliminates end-of-month and average balances of balance sheet accounts. It has special inputs for posting minority interest in the net assets of a subsidiary.

This utility includes the following calc methods Calc methods define the formatting and calculations for records being inserted into an Axiom query's data ranges. In plan files, they can also be used to insert new rows or change methodologies on existing rows. that you can use for each of the category types listed above:

Calculation Method	Description
Party Balances	In the context of eliminations, a party is a receiving department/account combination within an inter-company transaction relationship. There can be multiple parties within an inter-company transaction relationship. This section allows you to define the account/department combinations of one or more party balances of inter-company transactions.
Counterparty Balances	For budget elimination purposes, a Counterparty is a sending department/account combination within an inter-company transaction relationship. For any given budget elimination, there can be only one counterparty. The counterparty section of the calculation methods sums the party balance elimination amounts into a single offset amount. NOTE: Read the section About special conditions within the elimination calculation methods before using this calculation method.

The calculation methods you add are displayed in the utility, as seen in the following example:

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Adding an elimination

The process for adding a budget elimination for an interest-bearing income statement, a non-interest income statement, or a balance sheet is the same.

To add an elimination:

1. Open a budget, scenario, or forecast.

2. From the Plan Utilities tab, click Budget Eliminations from the list of planning utilities.

   NOTE: The utility opens in the Desktop Client.

3. In the BudgetElimination sheet, double-click one of the following:

   • Add an Interest Elimination

   • Add a Non-interest Elimination

   • Add a Balance Sheet Elimination

4. In the Calc Method Variable dialog, complete the following fields, and click OK:

   Option	Description
   Elimination Description (50 characters)	Type a description of up to 50 characters.
   Elimination Department	Type or select a department.
   Party Account	Type or select a party account number.
   Party Department	Type or select a party department.
   Counterparty Account (optional)	Type or select a counterparty account.
   Counterparty Department (optional)	Type or select a counterparty department.

5. To add a party balance, as needed, double-click Add a Party Balance.

   

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6. Review and/or complete the following columns for the elimination type:

   Column	Description
   Entry Status	Enable or disable party and counterparty entries within the calc method, regardless of the entry status of the party entries, by doing one of the following: To enable the counterparty balance entry lines, in the Entry Status column, click the cell and from the drop-down, select Enabled. NOTE: Make sure at least one party balance entry status is set to Enabled. You must also select a counterparty account and department. To disable party balance entries, in the Entry Status column, click the cell and from the drop-down, select Disabled. NOTE: The utility does not factor disabled party balance entries into the counterparty balance entry.
   Elimination Description	Type a description of 50 characters or less. The utility saves the description to the Detail column for every record within the elimination entry that is saved to the database.
   Elimination Department	Type the elimination company department number in which to save the elimination entries.
   Row Type	The row type distinguishes budget balances from the elimination lines. This column is not editable.
   Account	Select the party and counterparty accounts by clicking the ellipses next to the cell. From the Choose Value dialog, select a department, and click OK.
   Department	Type the party and counterparty departments.
   DTYPE	The data type of the balance to be eliminated. This column is not editable.
   Custom primary keys (hidden)	The utility can display up to five custom primary key columns that have been added to the planning table. When the utility opens, these columns will display for user input.
   Base Year, Budget Year, and Plan Year columns	These columns cover the months remaining of the base year and all the plan year months up through the terminal year.

7. To refresh the utility, in the Main ribbon tab, click Refresh .

8. When you are ready to save the budget elimination changes to the database, in the Main ribbon tab, click Save.

   

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9. When you are done, close the utility.

About Special conditions within the elimination calculation methods

Single-sided entries

The calc method counterparty balance section assumes that the elimination entries will be two-sided. However, in special cases like the elimination of equity in the earnings of subsidiaries, some elimination entries will be single-sided—meaning that only the party balance will be eliminated. To configure an elimination for a single-sided entry, simply omit the account and department numbers from the Counterparty Balances section. This turns off the save to database action for the Counterparty Balances section of the calc method.

Posting minority interest in net assets of subsidiaries

The last three rows of the Balance Sheet Elimination calc method are dedicated to posting the minority interest in net assets of a subsidiary. The minority interest feature of the calc method is only used when eliminating investments in subsidiaries that have minority interest ownership. Two conditions, in addition to Entry Status conditions, must exist to enable the minority interest entry:

• A minority interest account number must be present in the Account column of the end of month (EOM) balance row of the minority interest entry.
• The minority interest percent value in the first data column must be >0. If it exists within the Company table, the utility will look up the minority interest percent from the MinorityInterestPercent column based on the company number of the department number in the first party row of the elimination calculation method. The minority interest percent can be modified by the user.

When the minority interest entry is enabled, the system calculates the counterparty balance EOM and AVG balance elimination amounts as the sum of the respective party balances multiplied by 1-minority interest percent. The system calculates the average (AVG) and EOM minority interest in the net assets of the subsidiary as the sum of the party balances multiplied by the minority interest percent.

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Processing eliminations for a budget

To process eliminations for a budget:

1. Open a budget, scenario, or forecast.
2. Click the Plan Utilities tab.
3. Do one of the following:
   • To process only this utility, in the Process Plan Utilities column, locate Budget Eliminations in the list, and click Process.
   • To process all planning utilities, click Process All.

TIP: Axiom will notify you when your scheduled job is completed. For more information, see Viewing notifications in the Web Client.