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Eliminating Interco Dividends using Automatic Journals Guideline

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Eliminating Interco Dividends using Automatic Journals Guideline
Guideline
Eliminating Interco Dividends
using Automatic Journals
Product(s): IBM Cognos Controller
Area of Interest: Financial Management
Eliminating Interco Dividends using Automatic Journals
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Copyright and Trademarks
Licensed Materials - Property of IBM.
© Copyright IBM Corp. 2009
IBM, the IBM logo, and Cognos are trademarks or registered trademarks of
International Business Machines Corp., registered in many jurisdictions worldwide.
Other product and service names might be trademarks of IBM or other companies. A
current list of IBM trademarks is available on the Web at
http://www.ibm.com/legal/copytrade.shtml
While every attempt has been made to ensure that the information in this document
is accurate and complete, some typographical errors or technical inaccuracies may
exist. IBM does not accept responsibility for any kind of loss resulting from the use of
information contained in this document. The information contained in this document
is subject to change without notice.
This document is maintained by the Best Practices, Product and Technology team.
You can send comments, suggestions, and additions to [email protected]
Eliminating Interco Dividends using Automatic Journals
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Contents
1
INTRODUCTION ............................................................................................ 4
1.1
1.2
1.3
PURPOSE ................................................................................................................ 4
APPLICABILITY ......................................................................................................... 4
EXCLUSIONS AND EXCEPTIONS ..................................................................................... 4
2
ELIMINATING INTERCOMPANY DIVIDENDS ................................................ 4
2.1
PROBLEM INTRODUCTION ........................................................................................... 4
Eliminating Interco Dividends using Automatic Journals
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1 Introduction
1.1
Purpose
This document provides guidelines to eliminating intercompany dividends that
require the use of movement extensions/movement accounts. One of the
consolidation rules is to eliminate the dividends received from a company
belonging to the consolidated group as it reflects results already booked in
the previous year. There are no predefined rules for handling the elimination.
The rule consists to debit the dividend received and credit the retained
earnings.
1.2
Applicability
IBM Cognos Controller
1.3
Exclusions and Exceptions
There are no known exceptions and exclusions at the time this document was
created.
2 Eliminating Intercompany Dividends
2.1
Problem Introduction
Here is an example about elimination of dividends in IBM Cognos Controller.
In order to properly manage movement extensions two rules have to be
created. The first rule eliminates 100% of the amounts (D100). For the
second rule a reclassification is done on the group >< minority (D200).
1. The source account is identified as 750I and should be a statistical
account.
Eliminating Interco Dividends using Automatic Journals
2. Review the Main Settings and Accounts for Analysis of Reserves. It is
important to understand the flow between retained earnings and net
income along with the reserves.
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Eliminating Interco Dividends using Automatic Journals
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3. The first rule to be established is the elimination of 100% of the dividend
by creating you own automatic journal.
The bottom of the entry should look similar to the following screenshot.
Eliminating Interco Dividends using Automatic Journals
4. Define the control table. This example is for the D100
journal that was created in Step 3.
•
•
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automatic
The account 750000000 is the income account: dividend income
received for the period
The account 140000000 is the account retained earnings BS found in
the general configuration and must be the same account
5. The second rule that is required it to eliminate the minority interest.
Eliminating Interco Dividends using Automatic Journals
6. Define the automatic journal control table for the second rule. The
account 136900000 is the account minority in this example.
.
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Eliminating Interco Dividends using Automatic Journals
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