2. Objectives
After completing this lesson, you should be able to:
• Describe how intercompany data is eliminated in Financial
Management
• Set up entities and accounts for intercompany transactions
• Enter intercompany data
• Report on intercompany data
• Format intercompany reports with Oracle BI Publisher
3. Intercompany Transactions Overview
A transaction between two entities in an organization is an
intercompany transaction.
East Sales Customer
West Factory
Sale
Goods shipped from
separate organization
3
1
2
Intercompany
invoice
(transaction)
4. Intercompany Account Balances
Intercompany balances are not relevant for external financial
reporting. According to accounting rules, intercompany account
balances are eliminated prior to external financial statement
generation.
1
West Sales Administration
East
Marketing
East
EastSales
California Connecticut
Plant1
USA
1
212
2
5. Elimination Process
USA
RentalRevenue: 0
RentalExpense: 0
California
RentalRevenue: 1500
RentalExpense: 0
Connecticut
RentalRevenue: 0
RentalExpense: 1500
Plant1
RentalRevenue: 1500
RentalExpense: 0
Sales West
EastSales
RentalRevenue: 0
RentalExpense: 1500
Administration
East
Marketing
East
8. Setting Up Entities for Intercompany Data
Specifies whether the entity is
displayed as a member in the ICP
dimension
Specifies a security class
for the entity for the ICP
dimension
9. Setting Up Accounts for Intercompany Data
The following properties need
to be set for intercompany
accounts:
Is ICP
Plug account
12. Formatting Intercompany Reports
with Oracle BI Publisher
Save the formatted template.
Select the template when printing
the report.
Format the default template and select the saved template when printing reports.
13. Summary
In this lesson, you should have learned to:
• Describe how intercompany data is eliminated in Financial
Management
• Set up entities and accounts for intercompany transactions
• Enter intercompany data
• Report on intercompany data
• Format intercompany reports with Oracle BI Publisher
