Setting Up Intercompany Partners

Intercompany transactions are managed across the Intercompany Partner (ICP) dimension. The ICP dimension stores all intercompany balances that exist for an account. ICP is a reserved dimension used in combination with the Account dimension and Custom dimensions to track and eliminate intercompany transaction details.

To set up an application for intercompany transactions, you must perform these actions:

  • Indicate the accounts that perform intercompany transactions and indicate a plug account for each intercompany account (Is ICP and Plug Account properties in account metadata)

  • Indicate the entities that perform intercompany transactions (Is ICP property in entity metadata)

When you create intercompany transactions, each group must have at least one intercompany account and one plug account. You designate an account as intercompany by selecting the Is ICP property for the account. When an account is designated as intercompany and intercompany transactions are entered, eliminating or reversing entries are generated in the [Elimination] value dimension member through the consolidation process.

A plug account is an account that, when eliminations are completed, stores the difference between two intercompany accounts. A plug account can be set up as an ICP account. For a plug account to be detailed by ICP, set the Is ICP property to Y or R so that the system writes eliminations to the corresponding ICP member. If you do not want a plug account to be detailed by ICP, set the Is ICP property to N so that the system writes eliminations to [ICP None]. During consolidation, transactions between valid intercompany entities are eliminated.

Table 37. System-Generated ICP Elements

System-Generated ICP Element

Value Description

[ICP Top]

Specifies the top intercompany member

[ICP None]

Specifies that no intercompany member is used

[ICP Entities]

Specifies the entities that are designated for intercompany transactions

Table 38. ICP Properties  

Property Label

Value Description

 Property Name
Alias

Member description (maximum of 80 characters)

To use the Alias property, you create an Alias dimension, define properties, and associate the Alias dimension with another dimension. For example, you can create an Alias dimension with the values English, French, and Italian and then associate the Alias dimension with the ICP dimension.

 Alias

Default Parent

The default parent for the ICP. The default parent value is a derived value and you cannot enter a value.

 DefaultParent

Name

Name for the ICP (required)

Names are defined and cannot be changed.

 Name

Security Class

Name of the security class that defines the users who can access the ICP data (can contain up to 80 characters)

To enter a value for this property, you must associate the ICP and Security Class dimensions.

 SecurityClass
Submission Group

The Submission group (0 to 99).

The default, blank, defaults to 1. If the submission group is set to zero (0), the ICP is not included in the review process.

 SubmissionGroup