The Group Structure of Consolidation Group World
Let's check the results for the consolidation group World. Associated consolidation unit CAN00 - Canada is consolidated into the consolidation group with the equity method. The system uses the equity method due to a direct share of 35 % of investor USA00 - United States in investee CAN00 - Canada.
Executing Task 2101 - Cons. Of Invest. (Act.-Based) for Consolidation Group WORLD
The first and subsequent consolidation calculation also occurs in test mode in the consolidation monitor for consolidation group World.
Consolidation Group WORLD: CAN00
First Consolidation
Next to the elimination postings previously derived for consolidation group America, you must calculate the minorities in goodwill. We calculate minorities in goodwill because only 80% of the goodwill belongs to the consolidation group World, and 20% belongs to minorities.
The video below explains the derivation of the elimination postings for the first consolidation for consolidation unit CAN00 - Canada in consolidation group World.
Anthony's Summary: In this video, we explain the elimination postings when Canada is consolidated into consolidation group World.
First Consolidation Task Log
The task log for the first consolidation of consolidation unit CAN00 - Canada in the consolidation group World shows goodwill and minorities in goodwill in the Differential section.
The Document information in the task log describes the Elimination Posting Records previously set up for the first consolidation from a debit-to-credit perspective.
Consolidation Group WORLD: CAN00 - Subsequent Consolidation
On the first of December 2025, an investor bought Consolidation unit CAN00. Canada then generated profit for December. This profit generation occurs since, in the Group Structure settings, we did not select First Consolidation at the End of the Period.
The internal part of the 317000 - Retained Earnings FS item containing CAN00's profit belongs to consolidation group America.
According to consolidation group World, 20% of this internal profit belongs to minorities. Since both elimination postings are P&L-relevant, the earnings effect is automatically triggered for both postings.
Consolidation Group WORLD: CAN00 - Subsequent Consolidation Task Log
The task log of the subsequent consolidation shows the internal part of the net income of consolidation unit CAN00 - Canada, the Elimination Posting Record, and the delta of both Closing P& L and Earnings Effects from a debit-to-credit perspective.
Manual Activation of Goodwill
After executing the 2101 - Consolidation Of Investments (Activity-Based) task, you must manually post the activation of goodwill using the Post Group Journal Entries app. The figure below explains how to set up such a posting.
As a result, the system posts EUR 135,25 to the 163100 - Goodwill asset FS item. This posting activates goodwill. The delta amount on the 321000 - NCI Goodwill Elimination and 310000 - Goodwill Elimination is zero after the second activation posting on the level of consolidation group World.