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Intercompany Data Entry
When you select Division for the
Intercompany Data Entry and Processing Level
, you must then enter the foreign divisional consolidation's intercompany payments (other than dividends) and receipts at the member (division) level.When you enter the foreign divisional consolidation intercompany data at the Division level, the system ignores any transactions (other than dividend payments) you enter in the foreign divisional consolidation binder.
You must make manual adjustments to remove (reclass) any amounts that represent intracompany transactions between divisions (or divisional consolidation) that are members of the same divisional consolidation. During Look Through calculations, comprehensive edit errors will occur if any intracompany transactions are present.
For tax years 2011 and later, you can enter intercompany transactions in (and with) the functional currency of division income tax binders meeting the following requirements:
- Entity Type: Divisional; or Parent, Subsidiary, Corporate Single Entity and International Entity Type of Division of Foreign Entity (hybrid division)
- International Filing Type: Foreign Entity
- Return Type: 1120 US Corporation
- Foreign Entity Type: Controlled Foreign Corporation, Foreign Partnership and Non-Controlled 10/50 Company
Legal entities and divisions are separated in the dropdowns for the
Recipient
Entity
(Intercompany Payments screen) and Payor Entity
(Intercompany Receipts screen) fields by a dashed line with the divisions appearing after the legal entity list.The payor and recipient lists include all foreign entities (both divisional consolidations as well as their member binders) regardless of a divisional consolidation's Intercompany Data Entry and Processing Level. Therefore, you must be aware of the Intercompany Data Entry and Processing Level which is used and enter Payor/Recipient selections (divisional consolidations or divisions) that are consistent with the setting. If you enter information at an inappropriate level, comprehensive edit errors and/or warnings occur and calculation results may be incorrect.
A foreign division cannot record an Intercompany dividend payment or be selected as the payor of a dividend in the Intercompany Receipts - Dividend screen.
Example 1
Entity Name | Type | Binder Properties Selection | Indicator |
|---|---|---|---|
DCA | Foreign Divisional Consolidation | International Data Completion Level | Division |
DCA | Foreign Divisional Consolidation | Intercompany Data Entry and Processing Level | Divisional Consolidation |
Div 1 | Foreign Division | same as DCA | member of DCA |
Div 2 | Foreign Division | same as DCA | member of DCA |
Entity Name | Type | Binder Properties Selection | Indicator |
|---|---|---|---|
DCB | Foreign Divisional Consolidation | International Data Completion Level | Division |
DCB | Foreign Divisional Consolidation | Intercompany Data Entry and Processing Level | Division |
Div 3 | Foreign Division | same as DCB | member of DCB |
Div 4 | Foreign Division | same as DCB | member of DCB |
DCA and DCB have the same functional currency. Since ONESOURCE Income Tax International requires functional currency within the members of a division consolidation, Div1, Div2, Div3 and Div4 have the same functional currency. At a transaction level, Div1 pays intercompany rent to Div4 of 10,000 units.
ONESOURCE Intercompany Transaction Data Entry
Since Div1 is a member of DCA which has an
Intercompany Data Entry and Processing Level
of Divisional Consolidation, the rent payment is recorded in foreign divisional consolidation DCA's Intercompany Payment - Rent screen.Foreign division Div4 is selected as the Recipient and given foreign divisional consolidation DCB's
Intercompany Data Entry and Processing Level
of Division.Since Div4 is a member of DCB which has an
Intercompany Data Entry and Processing Level
of Division, the rent recipient is recorded in foreign division Div4's Intercompany Receipts - Rent screen.Foreign divisional consolidation DCA is selected as the Payor (rather than its member Div1) given DCA's
Intercompany Data Entry and Processing Level
of Divisional Consolidation.Example 2
Entity Name | Type | Binder Properties Selection | Indicator |
|---|---|---|---|
DCA | Foreign Divisional Consolidation | International Data Completion Level | Division |
DCA | Foreign Divisional Consolidation | Intercompany Data Entry and Processing Level | Division |
Div 1 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCA |
Div 2 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCA |
Entity Name | Type | Binder Properties Selection | Indicator |
|---|---|---|---|
DCB | Foreign Divisional Consolidation | International Data Completion Level | Division |
DCB | Foreign Divisional Consolidation | Intercompany Data Entry and Processing Level | Division |
Div 3 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCB |
Div 4 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCB |
DCA and DCB have the same functional currency. Since ONESOURCE requires functional currency within the members of a division consolidation, Div1, Div2, Div3 and Div4 have the same functional currency. At a transaction level, Div1 pays intercompany rent to Div4 of 10,000 units.
ONESOURCE Intercompany Transaction Data Entry
Since Div1 is a member of DCA which has an
Intercompany Data Entry and Processing Level
of Division, the rent payment is recorded in foreign division Div1's Intercompany Payment - Rent screen.Foreign division Div4 is selected as the Recipient given foreign divisional consolidation DCB's
Intercompany Data Entry and Processing Level
of Division.Since Div4 is a member of DCB which has an I
ntercompany Data Entry and Processing Level
of Division, the rent receipt is recorded in foreign division Div4's Intercompany Receipts - Rent screen.Foreign division Div1 is selected as the Payor given foreign divisional consolidation DCA's
Intercompany Data Entry and Processing Level
of Division.Example 3:
Entity Name | Type | Binder Properties Selection | Indicator |
|---|---|---|---|
DCA | Foreign Divisional Consolidation | International Data Completion Level | Division |
DCA | Foreign Divisional Consolidation | Intercompany Data Entry and Processing Level | Divisional Consolidation |
Div 1 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCA |
Div 2 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCA |
Entity Name | Type | Binder Properties Selection | Indicator |
|---|---|---|---|
DCB | Foreign Divisional Consolidation | International Data Completion Level | Division |
DCB | Foreign Divisional Consolidation | Intercompany Data Entry and Processing Level | Divisional Consolidation |
Div 3 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCB |
Div 4 | Foreign Division | Intercompany Data Entry and Processing Level | member of DCB |
DCA and DCB have the same functional currency. Since ONESOURCE Income Tax requires functional currency within the members of a division consolidation, Div1, Div2, Div3 and Div4 have the same functional currency. At a transaction level, Div1 pays intercompany rent to Div4 of 10,000 units.
ONESOURCE Intercompany Transaction Data Entry
Since Div1 is a member of DCA which has an
Intercompany Data Entry and Processing Level
of Divisional Consolidation, the rent payment is recorded in foreign divisional consolidation DCA's Intercompany Payment - Rent screen.Foreign divisional consolidation DCB is selected as the Recipient (rather than Div4) given DCB's
Intercompany Data Entry and Processing Level
of Divisional Consolidation.Since Div4 is a member of DCB which has an
Intercompany Data Entry and Processing Level
of Divisional Consolidation, the rent recipient is recorded in foreign divisional consolidation DCB's Intercompany Receipts - Rent screen.Foreign divisional consolidation DCA is selected as the Payor (rather than its member Div1) given DCA's
Intercompany Data Entry and Processing Level
of Divisional Consolidation.