Intercompany Payments
The Intercompany Payments screen is used to enter any rent, royalty, interest, or dividend payment that this foreign entity made to a related party (domestic or foreign.)
The system validates information on this screen by comparing the sum of the Trial Balance amounts in the Sourcing Workpaper for accounts with the expense Account Type associated with the current tab to the sum of the values in the Payor Amount column. Any difference equals the Remaining Amount to be Allocated.
For each category of income, there must be at least one entity in the chain of intercompany transactions that is not both a payor and a recipient. Look Through calculations begin with this payor-only entity. The system resolves circular payments within rent, royalty, and interest chains before processing Look Through calculations by eliminating the smallest transaction. However, you must resolve any circular dividend transactions.
Entering Intercompany Dividend Payments
- On the TAS navigation tree, selectForeign Entity > Look-Thru Transactions > Intercompany Payments.
- SelectDividends.
- Select the recipient of the dividend payment.
- Enter the date the dividend was paid.
- Enter thePayor Amountwhich is the functional currency amount of the dividend.
- Enter theSpot Rate to US$for Pre 87 DPC(Deemed Paid Credit) for translation to US dollars.
- SelectSave.
Entering Intercompany Interest, Rent, or Royalty Payments
- On the TAS navigation tree, selectForeign Entity > Look-Thru Transactions > Intercompany Payments.
- Select theInterest, Rent, Royaltiestab.
- Select theRecipienton the next available blank line.
- Enter thePayor Amountin functional currency in the appropriate transaction type column.
- SelectSave.
