Interco Elimination in Legal application

Question

Dear All,
I understood that Inco elimination in legal application will be handled using business rule-adjustment details (Inco elimination) and will be triggered by stored procedure runcosole. Elimination entries will be posted at group level which we defined by making use of dynamic hierarchy.
I also found that we do not have any facility to tell system where the difference should post. Basically it eliminates whole amount irrespective of counterparty declaration. For example... I am doing intcoelim between sales and cogs and they are not matching. In this case I would like to eliminate lower amount between them and keep remaining balance as it.. Is this scenario can be handled??
Best regards
Shesh

Answer 1

No, you cannot eliminate part of an IC balance if the amount is loaded as an IC transaction but I'm not clear on why you would want to.  If Entity A has an IC sale to B of $100.  Then A has and IC sale of $100 and B would have an IC COS of $100.  The two amounts would by definition have to be equal.  That's not to say that there couldn't be multiple IC transaction between multiple entities in the same account and non-IC transactions for that matter in the same account but if you are loading the data correctly for the IC process to perform the eliminations it will work fine.  Here is how the process works:
Assume you have Entity A.  They have one account SALES for all sales transactions.  Further, A has $1,000 of sales with $100 as IC with B and $200 with C.  The remainder is non-IC.  Then in your IntCo dimension, you would have the following members:
<b>ID - ParentH1</b>
ALL_IntCo
Interco - ALL_IntCo
Non_IntCo - ALL_IntCo
I_A - Interco  (eye underscore A)
I_B - Interco
I_C - Interco
Then, you would have the following records in your fact table
<b>Entity, Account, IntCo, Amount</b>
A, Sales, I_B, 100
A, Sales, I_C, 200
A, Sales, Non_IntCo, 700
B, COS, I_A, 100
C, COS, I_A, 200
When the eliminations process runs, it looks for the first common parent of the members that have an IC transaction and then posts an offsetting record to the elimination entity at that common parent.  So, assume that A, B, and C all have a common parent with the elimination entity ELIM_1 (a base level member) then the following additional records would be generated when the elimination ran:
<b>Entity, Account, IntCo, Amount</b>
ELIM_1, Sales, I_B, -100
ELIM_1, Sales, I_C, -200
ELIM_1, COS, I_A, -100
ELIM_1, COS, I_A, -200
These would net out with the original records so that at the common parent or above it, the net value at the rollup InterCo would be zero and the value at ALL_IntCo would be the $700 of non-intercompany transactions after eliminations.