Set up the hierarchy of the organisation
On this page you can configure the hierarchy of entities within your organisation. Do this by simply selecting which parent an entity has. For the ultimate parent you can leave this field empty. This hierarchy will be reflected in the order of entities in filters across reporting.
Non-controlling interest (NCI)
When an entity is not owned for 100% you can configure a different stake. Finstack does not support ownership below 50% at this moment. Press the gear-icon to configure the GLAs involved. You need to select the GLAs for the Participation in the parent entity and the Equity in the child entity.
Checking the ratio of ownership of the participation
As a check, Finstack will highlight if the ratio between these accounts is different from the percentage configurated. This means that likely the ERP is not completely up-to-date.
Minority interest on the Balance sheet
Finstack will automatically correct for the minority interest on the Balance sheet. Make sure to map these accounts denoted by account number 0001.
How this will work in practice, is as follows:
In Setup > Structure it is recommended to create separate items under Equity on your Balance Sheet for the Elimination reserve and Minority interest.
The system GLAs denoted with
0000will hold the IC differences. In Setup > Mapping, map those to Elimination reserve.When a child entity is not owned by the parent for a 100%, there will be expected IC differences in Equity and participations (say 30% when owned for 70%).
The system GLAs denoted with
0001will subsequently correct for NCI(say the 30% remainder). In Setup > Mapping, map those to Minority interest.This way the NCI is configured and the Balance sheet will still balance.
See an example calculation below.