Intercompany Booking Setup 
The Intercompany booking function supports the overall Intercompany reconciliation process.
Prerequisites
The following are required to perform Intercompany eliminations within an application:
The application must include an Intercompany dimension of type I.
The Intercompany dimension must include the property ENTITY, whose values are entity names.
The account dimension must include the property ELIMACC, whose values are account names.
The entity dimension must include the property ELIM, whose values are Y or blank.
The appropriate business rule table must be set up.
A DTS package executing the intercompany logic must be available.
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
Intercompany booking concentrates into each entity the declarations and reported balances of all other entities versus the particular entity. This then allows business users within each reporting entity to run a report that matches all of its declarations and reported balances against the balances the rest of the entities without the need to assign to each owner read-access into other entities. This function also automatically generates the bookings that make the Intercompany declarations match and support the passing of posting detail to the actual consolidation application.
You use the Intercompany Booking business rule table to define the posting rules the system uses in generating the entries to match the Intercompany balances and declarations.
The values entered in the following properties determine default elimination logic:
Dimension |
Property |
Length in Characters |
Content |
|---|---|---|---|
Account |
ELIMACC |
20 |
A valid account in this dimension |
Entity |
ELIM |
1 |
Y or blank |
Intercompany |
ENTITY |
20 |
The entity ID corresponding to this intercompany member |
Currency |
REPORTING |
1 |
Y or blank |
The default elimination logic does the following:
Scans all base level, non-elimination entities, which are entities with the property ELIM <> Y.
In case the application has a currency dimension, restricts its action to all reporting currencies, which are currencies that have the property
REPORTING=Y. Data in local currency cannot be eliminated because it is in different currencies.Eliminates all values of the accounts to be eliminated, which are accounts that have the property ELIMACC<>blank, into the desired plug account, which are the account specified by the ELIMACC property itself.
The elimination is performed in the elimination entity below the first common parent.
The common parent is derived as follows:
The system identifies the two entities for which a common parent must be found. The first entity is the current entity member. The second entity is the entity corresponding to the current Intercompany member. This entity is obtained reading the content of the property ENTITY of the current Intercompany member.
The system searches in a selected entity hierarchy for the first member that has both entities as descendants. This is the common parent.
Then the system searches in the immediate descendants of the common parent for a valid elimination entity (an entity that has the property
ELIM=Y). This is the entity where the system stores the results of the elimination.
The default elimination logic does its searches in the first organization of the entity dimension. This can be modified to have the elimination performed in all hierarchies existing in the entity dimension. If no common parent is found, no elimination occurs. If no elimination entity is found below the first common parent, the next common parent is searched.