Intercompany Matching Detail Consolidation Debts

This page show details of the intercompany reconciliation in the category of consolidation debts.

You can access this page by clicking a balance amount on the Transactions Intercompany Data Entry Status page or by selecting Rates and Reconciliation > Intercompany Matching > Intercompany Matching Detail Consolidation Debts in the navigation panel.

You can verify account balances for the selected entity and intercompany for these processes for consolidation debts:

  • D1: Long Term Intragroup Payables
  • D2: Short term intragroup payables

The balances are presented for an entity accounts and their contra, intercompany accounts for each consolidation process in these currency types:

  • Group currency: Converted from local currencies of the selected entity and intercompany
  • Local currencies: Currencies of the selected entity and intercompany
  • Group currency based on transactions: Converted from transaction currencies

The above-the-threshold differences in the balance of the entity and intercompany accounts are marked with the Warning icon for each consolidation process. To verify the details of the difference, click the difference amount. The Transactions Data Entry Detail – Cons. Debts page is displayed.

To specify the transaction currency balances on the Intercompany Matching Detail Consolidation Debts page, click a value in the Group Currency (currency ISO code) column for a specific account, select Transaction Currency Data Entry, and specify the values in the displayed dialog box. By default, the selected level in the dialog box is HB I manual - Data Entry Manual. You can change the level but then the grid is read-only and you cannot specify any values.

Only entity accountants can specify transaction currency balances and only for entities for which they are responsible. Values in the intercompany section are read-only. The values are displayed in applicable currencies for these currency types:

  • Transaction currency
  • Group currency: Converted from transaction currency
  • Local currency
  • Group currency: Converted from local currency

To reconcile the above-the-threshold difference in the entity and intercompany account balances, an entity accountant who is responsible for the entity must specify relevant values in a transaction currency for the applicable currencies. An entity accountant who is responsible for the intercompany must do the same in the contra, intercompany account. Only then is the reconciliation process complete and finished.

Transaction currency values are automatically converted into group currency values by closing rates that are maintained as standard rates. Rate types of different currency methods that are assigned to specific accounts are not considered in this conversion.

Note: Currently, you can specify transaction currency balances either on the Intercompany Matching Detail Consolidation Debts or Transactions Data Entry Detail – Cons. Debts page. Additionally, on those pages, you can specify values in local currencies, but this is only for informational purposes and does not affect any data. To specify values, you must select the HB I manual - Data Entry Manual level in the context.
Caution: 
To delete a specified value from the database, you must press Ctrl + Del or specify #delete in an appropriate grid cell. If you specify 0 or press Del, then 0 is written back in the cube. This causes incorrect calculations of the Currency Translation Differences and Other Differences accounts.

This table shows how the Debt processes handle the transaction difference's empty (NULL) and 0 values, and values greater or smaller than 0:

Example Balance difference Transaction difference Other Differences Currency Difference
1 100 0 (NULL value) 100 0
2 100 0 (the result of 100-100=0, real value) 0 100
3 100 20 20 80
4 100 200 200 -100
5 100 100 100 0

In Example 1, there was no explanation made to the balance difference. Therefore, the transaction difference is an empty (NULL) value. Consequently, the Other Differences and Currency Difference accounts contain 100 and 0, respectively.

In Example 2, the balance difference was explained. Therefore, the transaction difference results in a real value of 0.

In Example 3, there were some explanations made to the balance difference and resulted in the transaction difference value of 20.

In Example 4, there were some explanations made to the balance difference and resulted in the transaction difference value of 200.

In Example 5, there were some explanations made to the balance difference and resulted in the transaction difference value of 100.

In Examples 2-5, the Other Differences account contains the same value as the transaction difference. The Currency Difference account contains the value that results from subtracting the value of the balance difference from the value of the transaction difference.

If the transaction difference is 0 or empty (NULL), then the difference is posted to the Other Differences account. If the transaction difference is greater or smaller than 0, then the split of values between Other Differences and Currency Difference is calculated.

Currency difference values are rounded to four decimal places. The Other Differences and Currency Difference columns show specific accounts that have been defined in Business Modeling for those difference accounts.