1. Administrator's Guide
  2. Managing Metadata
  3. Setting Up Intercompany Partners

Setting Up Intercompany Partners

Intercompany transactions are managed across the Intercompany Partner (ICP) dimension. The ICP dimension contains all intercompany balances that exist for an account. ICP is a reserved dimension used 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 (IsICP and PlugAcct attributes in account metadata)

  • Indicate the entities that perform intercompany transactions (IsICP attribute 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 IsICP attribute 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 in the Elimination Value dimension. A plug account can be set up as an ICP account. For a plug account to be detailed by ICP, set the IsICP metadata attribute to Y or R so the system writes eliminations to the corresponding ICP member. If you do not want a plug account to be detailed by ICP, set the IsICP attribute to N so the system writes eliminations to [ICP None].

During consolidation, transactions between valid intercompany entities are eliminated. See Defining Entity Members.

The following table lists system-generated ICP elements.

Table 4-12 System-Generated ICP Elements

ICP Element 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