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Configuring Intercompany Dividend Elimination - IBM Cognos Controller 8x

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Configuring Intercompany Dividend Elimination - IBM Cognos Controller 8x
Guideline
Configuring Intercompany
Dividend Elimination - IBM
Cognos Controller 8x
Product(s): Controller 8.3 or higher
Area of Interest: Financial Management
Configuring Intercompany Dividend Elimination - IBM Cognos
Controller 8x
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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]
Configuring Intercompany Dividend Elimination - IBM Cognos
Controller 8x
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Contents
1
INTRODUCTION ............................................................................................ 3
1.1
1.2
1.3
PURPOSE ................................................................................................................ 3
APPLICABILITY ......................................................................................................... 3
EXCLUSIONS AND EXCEPTIONS ..................................................................................... 3
2
ELIMINATION OF INTERCOMPANY DIVIDENDS .......................................... 3
2.1
2.2
2.3
2.4
2.5
DEFINITION ............................................................................................................ 3
GENERAL LEDGER ACCOUNTS ....................................................................................... 3
INTERCOMPANY DIVIDEND INCOME/PAYABLE.................................................................... 4
AUTOMATIC JOURNAL – INTERCOMPANY BALANCES ........................................................... 5
VERIFYING THE DIVIDEND INC/PAYABLE ELIMINATION........................................................ 5
3
ELIMINATION OF INTERCOMPANY DIVIDENDS/MINORITY INTEREST
ADJUSTMENT ............................................................................................................ 6
3.1
3.2
DIVIDENDS AND MINORITY INTEREST ............................................................................ 6
AUTOMATIC JOURNAL ................................................................................................ 6
4
OTHER REFERENCES ..................................................................................... 8
1 Introduction
1.1
Purpose
This document provides guidelines to setting up and eliminating
intercompany dividends and payable.
1.2
Applicability
IBM Cognos Controller 8.3 or higher.
1.3
Exclusions and Exceptions
There are no known exceptions and exclusions at the time this document was
created.
2 Elimination of Intercompany Dividends
2.1
Definition
Sometimes parent and subsidiary issue dividends to each other. Since,
dividend is deemed to be intercompany it needs to be eliminated when
consolidated financial statements are prepared.
2.2
General Ledger Accounts
The Dividend Payable and Dividend Income accounts need to be identify with
intercompany code to ensure the accounts accepts details from the counter
company.
Configuring Intercompany Dividend Elimination - IBM Cognos
Controller 8x
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2.3
4
You have the option to select Intercompany without transaction
currency (I) or Intercompany with Transaction Currency (J)
Intercompany dividend Income/Payable
The counter company information must be identified to isolate the
intercompany transaction as part of the data import into IBM Cognos
Controller. In this demonstration, Company 30300 – Globe Germany and
30200 Globe Belgium are used to illustrate the intercompany dividend. Globe
Germany pays a dividend to Globe Belgium in the amount of 10,000. There is
dividend account on the balance sheet and dividend income account on the
profit and loss statement. The dividend needs to be eliminated as if it never
happened.
Configuring Intercompany Dividend Elimination - IBM Cognos
Controller 8x
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2.4
Automatic Journal – Intercompany Balances
An Automatic Journal needs to be defined in order to eliminate the dividend.
Create and then define an automatic journal called dividend pay/income.
• Define the Receivable/Income account - in this example the dividend
income account must be entered into the fields.
• Define Payable/Expenses - in this example it would be the
intercompany dividend account on the balance sheet.
• Define how you want to handle the differences. The differences can
be entered as payable/receivable or charged to the income statement.
• Define the offset account or where the entry is to be cleared to on the
balance sheet.
• Select the advance screen. There are options for on-line matching and
counter dimensions. It is good practice to select on-line matching. The
counter dimensions come into play if you are using dimensions. It
should be noted that you are only allowed one dimension to charge
the amount too.
2.5
Verifying the Dividend Inc/Payable elimination
To verify the actual elimination was done correctly you can run a trial balance
with drill down to check the entry.
Configuring Intercompany Dividend Elimination - IBM Cognos
Controller 8x
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You can also run the journal across reports as well to verify the actual
transaction was completed correctly.
3 Elimination of Intercompany Dividends/Minority
Interest adjustment
3.1
Dividends and Minority Interest
Sometimes companies want to eliminate 100% of dividend and then show the
dividend impact on minority interest. There is another option available if this
is a requirement.
3.2
Automatic Journal
Set up a new automatic journal.
Configuring Intercompany Dividend Elimination - IBM Cognos
Controller 8x
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•
•
•
from account 1801 (the P/L account for Dividends)
To account change 1101120100 is the B/S account for retained
earnings.
To account change 1101130100 is the B/S account for this year
results.
To account 11011120100050 is the B/S account for the dividends.
7
Configuring Intercompany Dividend Elimination - IBM Cognos
Controller 8x
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4 Other References
There is additional documentation available around intercompany. Please
refer to the below documents:
• Intercompany elimination process when counter company is unknown
– Controller 8x or higher.doc
• Intercompany eliminations with details in a separate data
load_Controller.doc
• Interco balances import with GL account as Counter Company.doc
• Guidelines to configuring Intercompany Profit – Controller 8X.doc
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