Creating Intercompany Transactions

In Oracle Hyperion Financial Management, you can create intercompany transactions as follows:

Load intercompany transactions from ASCII files. See Loading Intercompany Transactions.
Manually enter transactions from the Manage Intercompany Transactions page.

You can enter intercompany transactions for accounts that have been set up by the administrator as intercompany accounts. Entities that conduct intercompany transactions with each other are known as intercompany partners. The administrator identifies the entities that can be intercompany partners.

The intercompany period must be open before you can enter any intercompany transactions. After the period is opened, you can manually enter transactions in the application. To create transactions, you must be assigned the Intercompany Transaction User security role.

The transaction should contain information for only one transaction as related to the entity in the point of view. The transaction ID and sub ID are used as the key to the transaction detail record.

Table 10-5 Transaction Detail

Transaction Detail	Description
Scenario	Must be a valid scenario defined for the application.
Year	Must be a valid year defined for the application.
Period	Must be a valid base period defined for the scenario.
Transaction ID	This ID is required. You must enter an ID for the transaction, with a maximum of 40 characters. When combined with the Sub ID, this ID becomes a unique identifier for the entity/partner/account/C1/C2 within the scenario/year/period combination.
Transaction Sub ID	(Optional). You can enter a sub-ID for the transaction, with a maximum of 40 characters. This is useful if you need to handle one-to-many or many-to-many transactions between two entities. For example, if one transaction in the originating entity’s book corresponds to multiple transactions in the partner’s book, you can use the Transaction ID for the common reference and use the Sub ID for the multiple transactions. Another use for the sub ID is when there is an adjustment needed to adjust the transaction in the Entity Currency instead of posting a journal adjustment in the Entity Curr Adjs. In this case, you can create a dummy transaction and use the same Transaction ID from the original invoice, but use the Sub ID to identify as an adjustment by entering ADJ1 in the sub ID to show that it is an adjustment instead of a real invoice.
Reference ID	(Optional). You can enter a reference ID to store any reference information for the transaction. For example, the entity might have its own set of invoice numbering that is different from the entity that issued the invoice. You can enter additional information in this Reference ID text box for information purposes only. You can also use the reference ID for the partner’s transaction ID. You can enter the entity’s reference ID for the Transaction ID and enter the corresponding invoice number from the partner entity in this text box.
Transaction Date	(Optional). This must be a valid date.
Entity	The entity must be a valid ICP base entity, not a parent entity.
Partner Entity	The partner entity must be a valid ICP entity for the account.
Account	The account must be a valid ICP account and the cell must support transactions as specified in the Rules file. See the Rules section of the Oracle Hyperion Financial Management Administrator's Guide.
Custom	The custom member must be a valid custom member for the account.
Transaction Amount	This is the invoice amount in the currency of the transaction. This is required only if the entity currency is not entered.
Transaction Currency	This is the currency used for the Invoice transaction. It must be a valid currency defined in the application.
Conversion Rate	This is the rate used to convert the transaction currency amount to the local reporting currency amount for the transaction. During the calculation of the local currency amount, if the operator is Divide, the system uses this formula: Local currency = transaction currency/rate. If the operator is Multiply, the system uses this formula: Local currency = transaction currency * rate. See the Oracle Hyperion Financial Management Administrator's Guide.
Operator	The Multiply or Divide operator depends on the local currency of the transaction. You must first define the Multiply or Divide operation for a specific currency in the currency table of the application. The default value for the operator is Divide. See the Oracle Hyperion Financial Management Administrator's Guide.
Entity Currency Amount	This is the invoice amount in the local entity currency. The currency must be a valid currency defined in the application. This is required if the transaction amount is not entered. Otherwise, the system can recalculate this information if you enter the transaction amount and the conversion rate.
Comment 1	(Optional). You can enter comments for the transaction. You can enter a maximum of 256 characters.
Comment 2	(Optional). You can enter additional comments for the transaction. You can enter a maximum of 256 characters. You can use Comment 2 to enter comments related to the partner’s transaction. For example, Entity A might enter comments in Comment 1 related to the transaction. Later, Entity A might run a matching report or view the partner’s transaction and realize that there are discrepancies with the partner’s amount. Entity A can then enter the additional comments in Comment 2 to state anything related to the information in the partner’s record. This information is then part of the transaction and can be included in the matching report for informational or audit trail purposes. Note that while Comment can be used for partner information, only the entity can enter the information. The partner entity cannot enter information in the entity’s record.
Reason Code	(Optional). The reason code must be a valid one defined by the administrator. The main purpose of the reason code is to indicate why a transaction has a Mismatched status; for example, because of a missing invoice from the partner entity, or an incorrect amount entered by the partner. If the transaction has a Matched status, you do not need to assign a reason code for the transaction. You cannot assign a reason code to a transaction with an Unmatched status.

To create intercompany transactions:

Select Consolidation, then Intercompany, and then Manage.
From the Point of View bar, select a scenario, year, and base period.
From the Edit Intercompany Transaction pane menu bar, select New.
From the New Intercompany Transaction pane, for Transaction ID, enter the transaction or invoice number.

You can enter a maximum of 40 characters.
Optional: For Transaction Sub ID, enter a sub identification for the transaction or invoice.

You can enter a maximum of 40 characters.
Optional: For Reference ID, enter reference information for the transaction.

You can enter a maximum of 40 characters.
Optional: For Transaction Date, enter a valid date, or click the pop-up calendar to select a date.
For Entity, enter an entity or click the Pick Members icon to select a member.
For Partner, enter a partner entity or click Pick Members icon to select a member.
For Account, enter an account or click Pick Members icon to select a member.
For Customs, enter a custom member or click Pick Members icon to select a member.
For Transaction Amount, enter the invoice amount and from Transaction Currency, select the currency used for the transaction.
For Conversion Rate, enter the rate used to convert the transaction currency amount to the local reporting currency amount.

Note:

If you leave this text box empty and enter the entity currency amount, the system recalculates the rate for you.
For Entity Currency Amount, enter the invoice amount in the local entity currency, and enter the currency of the reporting entity.
Optional: For Comment 1 and Comment 2, enter comments for the transaction.

Note:

You can enter a maximum of 256 characters.
To save the transaction, from the top of the Edit Transactions window, click Save, or select Actions and then Save.

Tip:

To reset rows to their default settings, from the top of the Edit Transactions window, click Reset or select Actions and then Reset.
Click Refresh, or select Actions, and then Refresh to see the newly created transaction.