Forum Discussion

cindybowen's avatar
cindybowen
New Contributor
2 years ago

plug accounts using P&L and Balance sheet types

We have an intercompany dividend we are trying to eliminate using a plug account. One entity is recording the expense the other entity is recording the dividend as an equity account. We are utilizing a plug account to match and have it appear on an intercompany statement.  Is it possible for the system to eliminate the amount using a balance sheet vs p&l account? I am seeing the consolidation top level hierarchy reporting out of balance in the balance sheet. 

 

Consolidation
  • JackLacava's avatar
    JackLacava
    Honored Contributor
    2 years ago

    As long as your Consolidation Algorithm Type is set to anything but Custom (in Cube Properties), I would expect Accounts of any type to participate in IC elimination - assuming they have been marked with "Is IC Account" true, with a plug account defined, and all the relevant matching filters on the Workflow Profile. Note that discrepancies can arise from imprecise translations, you might get some detail from your IC Matching report in Workflow.

    If your Consolidation Algorithm Type is Custom, though, it's all due to the Business Rules that have been developed; in which case you probably need to speak to whoever wrote them.

  • Henning's avatar
    Henning
    Valued Contributor II
    2 years ago

    Hi, just confirming what Jack already posted: Assuming the default setup, this is not possible without a rule that accounts for the translation difference that arises due to the different translation rates applied to both accounts.

    You can adjust for the translation difference on the plug account itself, on another CTA-like account, you can copy the expense data to 'technical' account that uses you balance sheet settings and assign this technical account to the plug instead, ... many ways to go about it which may ideally be discussed in detail with your implementation partner if you need more support in implementing this. If you use the technical account way, assigning this to your plug account will also ensure that this account will then be displayed in the IC matching report, using the 'matching' rate.