Intercompany Report for Non-consolidating entities

Question

I am running into an issue with putting together intercompany reports. Basically, if an entity has an intercompany partner that is not a consolidating entity, no elimination would occur at the parent (as expected). However, this pair would still show up on my IC matching report. Has anyone dealt with this type of issue with the IC reporting and has any tips to put me in the right direction?

T_Kress · Answer

If that is the case and Parent 2 is a non-consolidating parent then I would move it out of "Total" rollup and put it in it's own, stand-alone rollup.&nbsp; You can have one intercompany report that checks "Parent2" eliminations which are between Base 2 and 3 as those will still happen at the Parent 2 level.&nbsp; But by moving Parent 2 out of "Total", no elims will happen with Base 1.&nbsp;&nbsp;Generally, any entities that are non consolidating like joint ventures or supplemental, non-consolidating entities I would not put in the "Total" rollup.&nbsp; I would create a rollup called "Alt_Rollups" or something and tuck them there.&nbsp; You can put a parent over everything which itself is IsConsol = False (and "Alt_Rollups" can also be IsConsol = False) and group "Alt_Rollups" + "Total" together in a "AllConsolParent" if you want to consolidate on one parent.&nbsp; But in this way "Total" will only include eliminations between consolidating base entities.&nbsp; If you commingle your hierarchy, you would need a custom elim rule to stop the elims between Base 1 and Base2/3 from happening, I believe.

T_Kress · Answer

I would think that your non-consolidating entities (e.g. JVs or what have you) would be IsIC = False in their entity dimension property.&nbsp; Since they do not consolidate and thus will never eliminate, why would they need to be IsIC = True?&nbsp; If they are IsIC = False, they would not show up on matching reports.

tuhler · Answer

Thank you for your reply. This works for certain cases, however I am running into an additional complexity. In this example, if Base 2 and Base 3 have intercompany, those should show up as they eliminate at Parent 2. However, if Base 2 has intercompany with Base 1, that is the instance where we wouldn't want to see on the report because no elimination will occur.

T_Kress · Answer

If Base 2 has intercompany with Base 1, it should eliminate at the "Total" parent so you would still want it on the report because Parent 1 and Parent 2 come together in "Total" correct?

tuhler · Answer

Not in this instance because Parent 2 is an Equity method investment with no consolidation to the Total

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Intercompany Report for Non-consolidating entities

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