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Foreign divisional consolidations

Processing of intercompany transactions in Divisions

When you select
Division
 as the
Intercompany Data Entry and Processing Level
 indicator in a foreign divisional consolidation, look through calculations and comprehensive edits use the information you enter in the
Intercompany Payment and Receipts
 screens of the divisional consolidation's member binders and ignore any transactions present within the divisional consolidation binder.
Subpart F calculations and comprehensive edits refer to the
Dividend
 tab in the foreign division's
Intercompany Receipts
 screen to reallocate dividend income; however, all other Subpart F calculations are performed at the legal entity (foreign divisional consolidation) level.
E&P by Source Code and Basket reports, as well as the Apportionment Base Code Audit Trail and other reports, are available for foreign divisions on the navigation menu, under
International Reports
, in the
Look Through
 and
Subpart F
 report folders.
When a foreign division's the payor of an intercompany transaction, the recipient's associated income (and withholding tax and other related expenses) gets resourced using the expense apportionment of the payor division (rather than the divisional consolidation). When a foreign division's the recipient of intercompany income, the income of the division's resourced during Look Through and Subpart F, the division's expenses reapportioned (if appropriate), and the amounts reconsolidated to the foreign divisional consolidation level.

This article applies to:

  • Product: ONESOURCE Income Tax, ONESOURCE International Tax
  • Return type: 1120 Corporation
  • Subject: Consolidations
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