Intercompany Booking Rule

The Intercompany booking function supports the overall Intercompany reconciliation process.

Prerequisites

The following are required to perform Intercompany eliminations within an application:

  • Five additional data sources must be defined for Data Source Dimension in IC_ORIGIN attribute. These data source members will be used for IC Data Calculation, which is the pre-step for intercompany bookings:

    • I – Source data source to be used in IC Data

    • D1 – My Debit Accounts

    • D2 – Their Debit Accounts

    • C1 – Their Credit

    • C2 – My Credit

  • The appropriate business rule table must be set up.

  • The Account dimension must define a dedicated hierarchy to include all accounts for Intercompany booking.

This configuration not only allows intercompany details to be entered for any account, but it also supports an automatic elimination-by-level for all desired accounts.

Note
Although not mandatory, Intercompany reconciliation is normally performed in a separate Intercompany matching application apart from the actual Consolidation application.
Features
The consolidation engine supports a mechanism to perform the matching of the inter-company declarations among the entities of a group. This mechanism is split into two independent procedures as follows:

  • ICDATA: this procedure can be used to copy the declarations of all entities versus a given entity by inter-company account. Essentially it concentrates into each single entity the declarations of all other entities versus each entity. This mechanism allows the owners of an entity to run a report matching all its declaration against what the rest of the world has declared against him, without the need to assign to each owner read permits into other entities.

  • Intercompany Booking: this procedure can be used to automatically generate the bookings that will make the intercompany declarations match.

By defining “Seller”, “Buyer”, or “Greater” in the business rule booking type, the system can automatically book the difference by assuming the correct value is Seller, Buyer, or either one with the greater booking value.

By configuring the “Maximum Booking” amount, you can set up the maximum threshold for automatic booking. Any differences bigger than this maximum value will be kept for manual adjustment later.

Intercompany bookings are executed from the Consolidation Monitor in the Consolidation Central area.