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whether the balances offset completely and therefore require a suspense entry for
balancing. You can do matching by Company pair or by Organization pair, as specified
in the Match Intercompany By drop-down list of the hierarchy.
Intercompany Elimination Entry
Intercompany elimination entries eliminate balances between entities to ensure that
they are not included in consolidated results. When matching balances are found, the
appropriate entries are created to eliminate the intercompany balances. The resulting
entry is made to the elimination entity of the first common parent entity of the two
entities.
To eliminate a balance under intercompany processing, entries must satisfy the
following:
•
Contain a line item that is in an enabled intercompany rule
•
Originate from an entity and counterparty entity, each of which have a path to a
common parent entity that does not include a consolidation type of None
Intracompany Elimination Entry
Intracompany elimination entries offset balances occurring between different business
units or companies within the same operating entity.
To eliminate a balance under intracompany processing, entries must be the following:
•
A line item that is in an enabled intercompany rule
•
From the same operating entity
Suspense Handling
When you define an intercompany rule, you specify a suspense account and a threshold
amount for suspense handling. Suspense handling refers to a balancing entry made to
the suspense account when balances to be eliminated do not offset completely.
Suspense handling writes to the suspense account of the receivables side entity.
10-2 Oracle Financial Consolidation Hub User's Guide
Note:
Identification of balances for elimination during intracompany
processing is determined by an intracompany category setting.
See: Intracompany, page 7-2
Note:
A balancing entry is written to the suspense account for any out
of balance amounts, whether or not they exceed the user-specified
threshold amount.
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