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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Automation and calcula...
Microsoft Dynamics AX (Archived)

Automation and calculation of a goodwill in D365 FO

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Posted on by Veronika Filonenko 1,261

Hi Finance people, 

Has anyone done a full consolidation in D365 or 2012 according to IFRS 2,8,10? 

So here is my challenge. I want to know if anybody found an automatic way to calculate the goodwill and eliminate the profit of a non-controlling portion of the subsidiary? 

Here is what i am looking to automate. The amount in yellow of 6,000$  represents the goodwill calculated this way: 

+ Mommy's investment in Baby of 70,000$

+ Value of non-controlling interest is 20% of baby's net assets o 80,000$ = 16,000$

- Baby's net asset acquisition of 80,000$

 (70+16-80=6k)

3223.2.jpg

What i want to know if 

a: is this better to do with the on-line consolidation process or the financial reporting tool?

b: has anyone done that and could share a print screen of the setup of the columns or the setup steps of the online consolidation process?

This would be very appreciated. 

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  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Veronika,

    for a:

    The preferred or recommended consolidation tool to use is the Management Reporter. You could also use the on-line consolidation but would have to setup at least one - but probably multiple - additional companies to record eliminations and other adjustments that you need.

    For b:

    For scenarios similar to what you describe we usually recommend special consolidation tools because the example that you describe is complex to handle in MR alone. Similar issues will arise if you partially sell companies, require a revaluation of the value of the companies sold and then have to calculate and report taxes on that difference. These are things that can easier be handled with specialized consolidation tools.

    Best regards,

    Ludwig

  • Veronika Filonenko Profile Picture
    Veronika Filonenko 1,261 on at

    Zut!

    I was hoping to hear a different answer but farely I knew it was a big possibility that we needed a special consolidatio tool for this purpose.

    It is hard to sell MR to customers for consolidation when it doesn't do it completely.

    MR is good For internal reporting purposes only and the client must not be public as well.

    Thanks for the help Ludwig.

  • Veronika Filonenko Profile Picture
    Veronika Filonenko 1,261 on at

    Zut!

    I was hoping for a different answer, but I new that it is a big possibility that we needed an additional consolidation tool for this purpose.

    It is hard to sell MR to customers to do consolidation when they are public. Because it just won't be enough.

    MR is good for internal reporting purposes and for clients that are not public and do not have to be IFRS compliant.

  • Veronika Filonenko Profile Picture
    Veronika Filonenko 1,261 on at

    Hi Crispin,

    well I am always interested in new ideas. It can be very helpful.

    I am interested to know what was the need? the calculations behind the scene ? and how does this form look?

    Any detail.

    you can wright to my email vfilonenko@thinkmax.com

  • guk1964 Profile Picture
    guk1964 10,888 on at

    Although MR seems to be the recommended way it has limitations also but can usefully be used with online consolidation.

    I have investigated and implemented  several CPM solutions. Most claim the feature in their marketing. Most of the mid range tools have limited references, for enterprise consolidation.  They all tend to be strong in budgeting and weak in consolidation, and almost all suffer with dire performance  for consolidation as does Ax and other erp systems.. There are a lot of calculations, for a multi level group company with inter-company eliminations and multi currencies, to translate, multi posting layers, multi dimensions and structures  etc  and those calculations often run single threaded so high end server processor, SSD or fast read write disks, Enterprise SQL (if compatible ) etc, are  needed. and are usually not provided due to the higher costs.

    This is an area where cloud computing should make a difference. Its been a weak area for Ax for many years. Pushing it to MR was one approach , then it was mooted to do it with Power BI. If Microsoft is serious about positing the solution as Enterprise then this feature is key, and would be a major competitive edge over other erp systems that currently have the same challenges. 

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