Intercompany Reconciliation template in Planning Business Modeler

The rule that you can create from an Intercompany (IC) Reconciliation template balances the transactions that occur between different entities in the company. PerformancePoint Planning Business Modeler automatically includes the IC reconciliation template with financial models.

IC reconciliation adjusts for differences in the values recorded by the buyer entity and the seller entity for intercompany transactions. If the recorded values do not match after adjustments for currency differences, IC reconciliation creates balancing entries.

For example, suppose that the Tahoe resort sold supplies to the Toronto resort. If Tahoe (the seller) recorded $250 for the supplies sale, but Toronto (the buyer) recorded $200 for the same transaction, the transaction is $50.00 out of balance. To reconcile the difference between buyer and seller, IC reconciliation enters an adjustment in an offset account for the seller. In this case, the IC reconciliation process enters $50.00 in the Reconciliation Offset Account, therefore creating overall balance.

In this topic

Prerequisites

Implementation

Placeholder substitution requirements

Prerequisites

The following list shows the tasks that are prerequisite for a rule that you create with this template:

  • Entity dimension members that might have intercompany transactions have intercompany property = TRUE.

  • If your model includes the Flow dimension, accounts of type Income Statement have a Flow member of NONE.

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Implementation

A rule created from this template has specialized implementation of intercompany.

Note:  To create a report that uses the results of an Intercompany (IC) Reconciliation rule, a user who is not a modeler must be assigned to the associated IC reconciliation job.

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Placeholder substitution requirements

To convert the Intercompany Reconciliation template into a business rule, you must substitute actual dimension values for the placeholders in the templates. For information about how to substitute values, see the topic Filling a placeholder in a rule template.

The following table describes the placeholder substitutions you must make to create a business rule from this template.

Placeholder

Name

Comment

<<[Intercompany].[All Members].[Buyer Intercompany Member(s)]>>

Intercompany dimension member

Entity that is buyer for intercompany transaction

<<[Intercompany].[All Members].[Seller Intercompany Member(s)]>>

Intercompany dimension member

Entity that is seller for intercompany transaction

<<[Account].[All Members].[Buyer Account Member(s)]>>

Account hierarchy and member name

Account and hierarchy in which buyer transaction occurred

<<[Account].[All Members].[Seller Account Member(s)]>>

Account hierarchy and member name

Account and hierarchy in which seller transaction occurred

<<[Account].[All Members].[Reconciliation Balancing Account Member]>>

Account hierarchy and member name

Account and hierarchy for balancing intercompany transactions

This account must have Intercompany property = FALSE.

<<[Account].[All Members].[Reconciliation Offset Account Member]>>>

Account hierarchy and member name

Account and hierarchy for recording offsets to reconciliation balances

This account must have Intercompany property = TRUE.

<<[Flow].[All Members].[Flow Member(s)]>>

Flow dimension member

Complete this placeholder value only if model includes Flow dimension.

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