This guide shows you how to keep the Investment in Subsidiaries Register, Movement form and Elimination Templates aligned and reconciled throughout the Investment Elimination Process.
Use it each month when running the automatic Investment Elimination Journal in IBM Controller. Complete the steps in order and resolve every reconciliation difference before consolidation, so your Investment in Subsidiaries elimination runs smoothly.
1. Update the Investment Register #
Before month end data reporting, record all acquisitions, additions, disposals, and other changes to the Investment in Subsidiaries movement accounts of the Investment Register at:
Group > Data Entry > Shareholdings and Investments.
The Investment in Subsidiaries movement form can then be updated with the data from the Register as it does not update automatically. If the Register is changed later, remember to update the movement form.
2. Reconcile the Investment Register and data entry form #
After all companies have reported for month end, complete the Opening Balances, Between Accounts and Debit/Credit reconciliations. Then run:
Group > Reconcile > Investments for the Group.
The report compares the Investment Register with the Investment in Subsidiaries movement form. Investigate and resolve every difference before proceeding.
Control point: The automatic elimination journal uses the detailed Investment in Subsidiaries data from the Register, not the total values saved on the Movement form. An unresolved difference may therefore prevent the investment from eliminating fully on consolidation. Check this report first when troubleshooting an incomplete elimination.
Example: the Register (Shareholdings Database) holds 8,000,500 for Monkey Feet Ltd, but the Movement form (Period Values) holds 8,000,000, a difference of 500. #
Shareholdings Database = from Data Entry Shareholdings and Investments
Period Values = from Investment in Subsidiaries movement form #
3. Update and balance the Investment Elimination Templates #
For all Investments entered/updated in the current period in the Investment Register and reconciled to the movement form in step 2, update or create the Investment Elimination Template.
Match every movement in the parent’s Investment in Subsidiaries accounts with the corresponding movement in the subsidiary’s Share Capital and any other relevant accounts. Do not save the template until it balances.
4. Reconcile the Investment Elimination Templates #
Run Group > Reconcile > Investment Elimination Templates.
Confirm that the parent entries in each template match the entries for the subsidiary owned during the period.
If a template is unbalanced, work through these checks before resaving:
- Check the parent’s investment values.
- If the parent and subsidiary report in the same currency, the parent’s Investment in Subsidiaries values flow directly from the Register.
- If they report in different currencies, the parent’s investment is entered manually in the Elimination Template, in the currency the template uses.
- Check the subsidiary’s Share Capital and other account values.
- These are entered in the template, so confirm they match the movements in the parent’s investment.
- If none of these explains the imbalance, investigate other causes and fix it before resaving.
Why this matters: An unbalanced template leaves the parent investment, the subsidiary’s Share Capital or other accounts only partly eliminated. During consolidation, offsetting entries are posted to the offset account so that each journal balances. If the template remains unbalanced, those offset amounts will not cancel to zero.
Example: the same 500 now appears in the template. The parent’s credit (8,000,500) exceeds the subsidiary-side debits (8,000,000), so the template is out by -500. #
Final thoughts #
Keeping the Investment Register, Movement form and Elimination Templates in step is a small monthly task that saves a much bigger one at consolidation.
If you’d like help getting more from IBM Controller or need assistance with your consolidation and elimination processes, Aramar’s IBM Controller specialists are here to help. Whether you’re tidying up your month-end routine or planning a wider Controller optimisation project, we’d be happy to discuss your requirements.
