HFM – Relationship between DOWN and POWN System Accounts


Relationship between POWN and DOWN system accounts-

 

  • Percentage of Direct Ownership of the Entity can be retrieved from the system account [Shares%Owned]. Direct Ownership (DOWN) is exactly that. For example, entity A directly owns 80% of entity B’s shares.
  • Percent Ownership (POWN) is not direct, it is a calculated value based on the shares owned by the entity marked as “holding”. If the entity GROUP owns the entity HOLDING, and HOLDING owns shares of entities A, B and C, then the system will calculate how much of A, B and C GROUP owns. That is POWN. The percentage is then used to determine how much of the values in  A, B and C should be consolidated in GROUP (the PCON value).
  • The example below illustrates the relationships between POWN and DOWN.
    In metadata, the entity structure shows that the parent Europe has children 1A, 1B, 1C and 1D. 1A is the holding company for Europe

EPMA_DIM

Direct Percentage of Ownership is set up using a Data Grid with the following:
– 1B is owned by 1A 80%
– 1C is owned by 1A 70%
– 1D is owned by 1B 20%
– 1D is owned by 1C 20%

HFM_Grid

Using Ownership Management, the system calculates Percent Ownership (POWN) for the children of Europe as follows:
– 1A 100%
– 1B 80%
– 1C 70%
– 1D 30%

HFM_OwnershipThe calculated POWN is relative to Europe. The value of 30% for entity 1D is calculated as follows:


1B is owned 80%, which owns 20% of 1D      80% * 20% = 16%
1C is owned 70%, which owns 20% of 1D      70% * 20% = 14%

16% + 14% = 30%

In summary, DOWN represents the percentage of direct ownership and POWN represents the ultimate percentage of ownership.

 

Thanks.

 

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