FESA CONSOL

FlexSystem

Elimination

Elimination AVESTA represents a group of users they are working within a computerized environment knowing that automation of elimination computing supported by their computerized systems are far from perfect.

 

Duplication of data

► Assuming no duplication within each company/business unit

► Duplication exist upon aggregation for a set of data

► Across different legal entities

► Across different business segments

► Across different geographical segments

 

Types of elimination adjustments

► Operating activities: Sales and purchases

► Financing activities: Borrowings, repayments and settlements

► Investing activities: Acquisition and disposal

 

Elimination for unrealized profits / (losses)

► Consolidated inventory is one of the key problem area

 

Elimination for different measures

► Quantity (for different unit code)

► Amount (for different reporting currencies)

 

Key problems encountered by headquarters

► Eliminating transactions manually

► Duplication of works for every report and reporting

► Is not easy to eliminate for all relevant dimensions

► Inconsistence amongst different reports trigger extra effort for reconciliation

► Implementing traditional consolidation systems

► It may demand for creating a huge volume of account codes on both regional and headquarters levels in order to support automation of elimination

 

An example of WYSIWYG elimination configuration

Elimination1


 

AVESTA Related Articles

  

 Evolution of accounting model

 Postmodern accounting equation

 The rise of group consolidation & budgeting

 Evolution of advanced accounting automation

 Aggregation  Versioning  Elimination  Standardization  Tagging  Alert

 Evaluation of AVESTA computing issues

 Three progressive phases of implementation

 Finance Computing Framework