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Foreign divisional consolidations

Reconciling intercompany receipts and payments

Before computing Look Through, reconcile intercompany receipts and payments for interest, rent, and royalties. Before computing Subpart F, reconcile intercompany receipts and payments for dividends.

Reconcile intercompany receipts and payments

  1. Open a top consolidation.
  2. On the
    Tax accounting system
     menu, select
    Foreign Tax Credit
    , then
    International Reports
    .
  3. In the
    Select Entities
     pane, select
    Data Entry
     from the
    Report Set
     dropdown.
  4. Select all the entities.
  5. Select
    Save Entities
    .
  6. In the
    Select Reports
     pane, expand
    International Data Entry Reports
    , then select the following:
    • Intercompany Interest Receipt
    • Intercompany Royalty Receipt
    • Intercompany Rent Receipt
    • Intercompany Dividend Receipt
    • Intercompany Interest Payment
    • Intercompany Royalty Payment
    • Intercompany Rent Payment
    • Intercompany Dividend Payment
  7. At the top of the window select
    Export to Excel
    .

Review exported file

Show all hidden content.
Part I
Identify receipt rows with a Payor Amount or Recipient Amount that lack a Recipient Entity Number, Recipient Name, or Payor Entity Number. These indicate multiple payments or receipts between the same Recipient and Payor on tabs NEW_INT_RCP, NEW_ROY_RCP, and NEW_RENT_RCP.
  1. Locate the row preceding the blank row in the
    Recipient Entity Number
     and
    Payor Entity Number
     columns to find the recipient and payor.
  2. In the
    Recipient Entity Number
    , select
    Foreign Entity
    Look-Thru Transactions
    Intercompany Receipts
    .
  3. Select the
    Interest, Rent, Royalties
     tab.
  4. In the section for the receipt type in the
    Payor
     column, go to the 1st row for the identified
    Payor
    .
  5. In the Recipient Amount column, enter the total of all receipts from the
    Payor
    .
  6. For all other rows under that receipt type for the recipient, select
    Delete
    .
  7. Select
    Save
    .
  8. In the
    Payor Entity Number
    , select
    Foreign Entity
    Look-Thru Transactions
  9. Select the
    Interest, Rent, Royalties
    tab.
  10. In the Recipient column, go to the 1st row for the
    Recipient Entity Number
    .
  11. In each payment type column, enter the total of all payments to the
    Recipient
    .
  12. Select
    Delete
     on all other rows for the identified recipient.
  13. Select
    Save
    .
Part II - no amount in the payor amount column
Identify receipt rows with no amount in the Payor Amount column. This indicates either an unpopulated Payor Entity Number or an incorrect division or divisional consolidation payor selection on tabs NEW_INT_RCP, NEW_ROY_RCP, and NEW_RENT_RCP.
Alternative A: When the identified payor is incorrect:
  1. In the
    Recipient Entity Number
    , select
    Foreign Entity
    Look-Thru Transactions
    Intercompany Receipts
    .
  2. Select the
    Interest, Rent, Royalties
     tab.
  3. In the section for receipt type, in the Payor column, select the row for the
    Payor Entity Number
    .
  4. Select the
    Payor
    .
  5. In the Recipient Amount column, enter the amount.
  6. Select
    Save
    .
Alternative B: When the payor is correct:
  1. In the
    Payor Entity Number
    , select
    Foreign Entity
    Look-Thru Transactions
    Intercompany Payments
  2. Select the
    Interest, Rent, Royalties
     tab.
  3. Select the Recipient column, and then the
    Recipient Entity Number
    .
  4. In each payment type column, enter the amount.
  5. Select
    Save
    .
Part III - no amount in recipient amount column
Identify payment rows with no amount in the Recipient Amount column. This indicates either an unpopulated Recipient Entity Number or an incorrect division or divisional consolidation recipient selection on tabs NEW_INT_PMT, NEW_ROY_RCP, and NEW_RNT_PMT.
Alternative A: When the recipient is incorrect:
  1. In the
    Payor Entity Number
    , select
    Foreign Entity
    Look-Through Transactions
    Intercompany Payments
    .
  2. Select the
    Interest, Rent, Royalties
     tab.
  3. In the Recipient column, select the
    Recipient Entity Number
    .
  4. Select the
    Recipient
    .
  5. In the Recipient Amount column, enter the sum of all receipts from the
    Payor Entity Number
    .
  6. Select
    Save
    .
Alternative B: When the recipient is correct:
  1. In the
    Recipient Entity Number
    , select
    Foreign Entity
    Look-Through Transactions
    Intercompany Receipts
    .
  2. Select the
    Interest, Rent, Royalties
     tab.
  3. In the section for the receipt type, in the Payor column, select the
    Payor Entity Number
    .
  4. In the Recipient Amount column, enter the sum of all receipts from the
    Payor Entity Number
    .
  5. Select
    Save
    .
Part IV - Multiple payments between the same entities on the same date
Receipt rows in the NEW_DIV_RCP tab with Payor or Recipient Amounts but missing Entity Numbers indicate multiple transactions between the same parties on the same date.
Consolidate multiple receipts
  1. Locate the prior row containing the populated Recipient Entity Number, Payor Entity Number, and Date Paid.
  2. In the Recipient Entity Number, go to
    Foreign Entity
    Look-Thru Transactions
    Intercompany Receipts
    .
  3. Select the
    Dividends
     tab.
  4. In the 1st row for the specific Payor and Date, enter the sum of all receipts from that Payor on that date in the Recipient Amount column.
  5. Select
    Delete
     for all other rows for the same Payor and Date.
  6. Select
    Save
    .
Consolidate multiple payments
  1. In the Payor Entity Number, select
    Foreign Entity
    Look-Thru Transactions
    Intercompany Payments
    .
  2. Select the
    Dividends
     tab.
  3. In the 1st row for the specific Recipient and Date, enter the sum of all payments to that Recipient on that date in the Payor Amount column.
  4. Select
    Delete
     for all other rows for the same Recipient and Date.
  5. Select
    Save
    .
Part V - Resolve missing payor amounts in receipt rows.
When receipt rows in the NEW_DIV_RCP tab show no value in the Payor Amount column, the issue may be an unpopulated Payor Entity Number, incorrect date, or wrong division or divisional consolidation selection. Use one of these 3 solutions:
Alternative A: When the payor is incorrect
  1. In the
    Recipient Entity Number
     select
    Foreign Entity
    Look-Through Transactions
    Intercompany Receipts
    .
  2. Select the
    Dividends
     tab.
  3. On the row for the incorrect Payor Entity Number, select the correct
    Payor Entity Number
     in the Payor column.
  4. Enter the date in the Date column.
  5. Enter the sum of all payments to the Recipient on that date in the Recipient Amount column.
  6. Select
    Save
    .
Alternative B: When the date paid is incorrect
  1. When the date paid is not correct in the Recipient Entity Number, go to
    Foreign Entity
    Look-Through Transactions
    Intercompany Receipts
    Dividends
    tab.
  2. Locate the correct Payor.
  3. Enter the correct date in the Date column.
  4. Select
    Save
    .
Alternative C: When the payor amount is missing
  1. When the payor and date are correct, in the
    Payor Entity Number
     go to
    Foreign Entity
    Look-Through Transactions
    Intercompany Payments
    Dividends
    tab.
  2. Select the Recipient.
  3. Enter the amount in the
    Payor Amount
     column.
  4. Enter the
    Date Paid
     in the Date column.
  5. Select
    Save
    .
Part VI - receipt rows with N/A in payor amount
Receipt rows displaying N/A in the Payor Amount column indicate that the selected Payor Entity Number is not an international member of the top consolidation (tab NEW_DIV_RCP). You have 2 alternatives to resolve this issue:
Alternative A: When the Payor Entity isn't an international member
  1. In the
    Recipient Entity Number
     (
    Foreign Entity
    Look-Through Transactions
    Intercompany Receipts
    Dividends
     tab), go to the
    Payor
    line.
  2. Select
    Delete
    , then
    Save
    .
  3. In the
    Recipient Entity Number
     under
    TAS
     in
    Adjustments
     under
    Tax Adjustments
    , populate an adjustment to debit intercompany dividend income and credit non-intercompany dividend income, then select
    Save
    .
  4. In the
    Recipient Entity Number
     on the TAS navigation menu, select
    Compute
    , then in the window
    Compute
    .
Alternative B: When the Payor Entity isn't an international member
  1. Go to Binder Properties, then select the
    International Members
     tab in the top consolidation.
  2. Select
    Add International Members
    .
  3. In the
    Select Workarea
     section, select the
    Workarea
    .
  4. Select
    OK
    .
  5. In the Select Members window, select the
    Payor Entity Number
    .
  6. Select
    Save
    .
  7. On the row for the added Payor Entity Number, select
    Add Ownership
    .
  8. Select the Owners, including the Recipient Entity Number.
  9. Enter the ownership percentages, ensuring they sum to 100.000000.
  10. Select
    Save
     on the ownership.
  11. Select
    Save
     again and close the Binder Properties window.
  12. In the changed top consolidation, go to the TAS navigation tree, then select
    Consolidate
    .
  13. Select
    Consolidate this binder and compute all binders with computes pending + consolidate and compute all underlying consolidations regardless of compute status
    .
  14. Under Consolidate Options, select
    Include related foreign members and foreign partnerships
    .
  15. Select
    Consolidate
    .
Part VII - payment rows with a Payor Amount or a Recipient Amount
Payment rows with no
Recipient Entity Number
,
Recipient Name
, or
Payor Entity Number
 indicate multiple payments or receipts between the same Recipient and Payor on the same
Date Paid
(tab
NEW_DIV_PMT
).
Alternative A: When the payor entity is an international member of a different filing entity or is filing a separate return
  1. To find the recipient, payor, and date paid, go to the last prior row populated in the columns
    Recipient Entity Number
    ,
    Payor Entity Number
    , and
    Date Paid.
  2. In the
    Payor Entity Number
     under
    Foreign Entity
    Look-Thru Transactions
    Intercompany Payments
    Dividends
     tab, in the 1st row for the Recipient and Date, in the
    Payor Amount
     column, enter the sum of all payments to the Recipient on that date.
  3. On all other rows for the
    Recipient
    on that
    Date
    , select
    Delete
    .
  4. Select
    Save
    .
Alternative B: When the payor entity isn't added as an international member
  1. When the recipient is a
    Foreign Entity
    , in the
    Recipient Entity Number
    Foreign Entity
    Look-Thru Transactions
    Intercompany Receipts
    Dividends
     tab, in the 1st row for the
    Payor
     and
    Date
     in column
    Recipient Amount
    , enter the sum of all receipts from the
    Payor
     on that
    Date
    .
  2. Select
    Delete
     on all other rows for the
    Payor
     on that
    Date
    .
  3. Select
    Save
    .
Part VIII - Payment rows with no amount in the Recipient Amount column
This indicates that the selected
Recipient Entity Number
 is not populated on that
Date Paid
, or the selection of the division or divisional consolidation recipient is not correct (tab
NEW_DIV_PMT
).
Alternative A: When the Recipient Entity Number is not correct.
  1. In
    Intercompany Payments
     on the
    Dividends
     tab.
  2. In the Recipient column, selecct the
    Recipient
    .
  3. n the
    Date
     column, enter the
    Date Paid
    .
  4. In the
    Payor Amount
     column, enter the sum of all payments to the
    Recipient
     on that
    Date
    , and then select
    Save
    .
Alternative B: When the Date Paid is not correct, in the Payor Entity Number
  1. In
    Intercompany Payments
     on the
    Dividends
     tab, for the
    Recipient
    .
  2. n the
    Date
     column, enter the correct date, then select
    Save
    .
Alternative C: When the recipient and date are correct and the recipient is a Foreign Entity.
  1. In
    Intercompany Payments
     on the
    Dividends
     tab, in the Payor column, select the
    Payor
    .
n the
Recipient Amount
 column, enter the amount.
In the
Date
 column, enter the
Date Paid
 and then select
Save
.
Part IX - Payment rows with N/A in the Recipient Amount column
This indicates that the selected
Recipient Entity Number
is not an international member of the top consolidation (tab
NEW_DIV_PMT
). Two alternatives are available.
Alternative A: When the recipient entity is an international member of a different filing entity or is filing a separate return
.
  1. In the Payor Entity Number, in
    Intercompany Payments
     on the
    Dividends
     tab on the line for the Recipient Entity Number, select
    Delete
    and then
    Save
    .
  2. In the
    Recipient Entity Number
     with an International Entity Type of Foreign Entity, select the
    TAS
     navigation tree, then
    Adjustments
    , then
    TAX Adjustments
    .
  3. Populate an adjustment to debit intercompany dividend income and credit non-intercompany dividend income, then select
    Save
    .
  4. In the changed
    Recipient Entity Number
     in TAS, select
    Compute
    , and then in the window, select
    Compute
    .
Alternative B: When the recipient entity isn't added as an international member
.
  1. For the top consolidation, go to
    Binder Properties
    , then the
    International Members
     tab.
  2. Select
    Add International Members
    .
  3. In the
    Select Workarea
     window, select the workarea, then
    OK
    .
  4. In the Select Members window, select the
    Recipient Entity Number
    , then
    Save
    .
  5. On the row for the added
    Recipient Entity Number
    , select
    Add Ownership
    , and then select the owners.
  6. Enter the ownership percentages summing to 100.000000.
  7. Select
    Save
     on the ownership.
  8. On the row for the
    Payor Entity Number
    , select
    Add Ownership
     or
    Parent(s)
    .
  9. Select the Owners, including the
    Recipient Entity Number
    .
  10. Enter the ownership percentages summing to 100.000000, and then
    Save
    .
  11. Select
    Save
     and close
    Binder Properties
    .
  12. In the changed top consolidation, on the
    TAS
     navigation tree, select
    Consolidate
    .
  13. Select
    Consolidate this binder and compute all binders with computes pending + consolidate and compute all underlying consolidations regardless of compute status
    .
  14. In
    Consolidate Options
    , select
    Include related foreign members and foreign partnerships
    , and then select
    Consolidate
    .
Part IIX - In any divisional consolidation with changed members
On the
TAS
 navigation tree, select
Consolidate
 and then select
Consolidate
.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: 1120 Corporation,international
  • Subject: Consolidations

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