Intercompany Booking Rule

The Intercompany Booking function supports the overall intercompany reconciliation process.

Prerequisites

The following are required to perform intercompany eliminations within a model:

Five additional data sources must be defined for the Data Source dimension in the IC_ORIGIN attribute. These data source members are used for IC data calculation, which is a preliminary step for intercompany bookings:
- I – Source data source to be used in IC data
- D1 – (user-defined description)
- D2 – (user-defined description)
- C1 – (user-defined description)
- C2 – (user-defined description)
You must configure the IC Booking business rule in order to set up the business rule table.
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 supports 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

Intercompany booking records the declarations and reported balances by other entities against a particular entity. This allows business users within each reporting entity to run a report that matches all of its declarations and reported balances against the balances of the rest of the entities, without having to assign to each owner read-access for other entities. Bookings that make the Intercompany declarations match can be automatically generated, and details can be posted to the consolidation model.

You use the Intercompany Booking business rule table to define the posting rules the system uses to generate the entries to match the intercompany balances and declarations.

The consolidation engine supports a mechanism to perform the matching of intercompany 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 intercompany account. 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 of its declarations to those declared against it, without the need to assign to each owner Read permission into other entities.
Intercompany Booking: This procedure can be used to automatically generate the bookings that 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 the 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 are kept for manual adjustment later.

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