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Topic

    Tarun Gulati
    Intercompany eliminations
    Topic posted October 11, 2019 by Tarun GulatiBronze Medal: 1,250+ Points, tagged Current Tax, Tax Provision 
    41 Views, 5 Comments
    Title:
    Intercompany eliminations
    Summary:
    How to map the Intercompany transactions in system to enable the elimination
    Content:

    In TRCS, how should we map the intercompany transactions to ensure that the transactions are eliminated while computing the tax of parent entity.

     

    The present structure is Group ABC has, three entities A, B and C. A has transaction with B & C. So while computing the tax for Group ABC we would like to ensure that inter-company transactions are eliminated.

    Comment

     

    • Rahul Gupta

      Intercompany eliminations takes place as part of the consolidation process. For that to happen you must have designed and configured metadata to include ICP attribute for relevant entities and accounts. You may refer to admin guide for detailed steps on configuration of Intercompany dimension.

       

       

    • Kumar Abhishek

      In TRCS, the eliminations have to dealt with creating Elimination Entities.

    • Kenneth Kramer

      We are currently reviewing multiple customer's use cases for consolidation (elimination) for tax using the intercompany dimension.  It is requires additional consideration above financial consolidations as it will impact both the pre-tax amount and related tax calculation (i.e. total tax, current, deferred, no calculation, etc.) depending upon the transaction and elimination required.  Feel free to submit use cases directly to Ken Kramer, Tax Reporting Product Management, kenneth.kramer@oracle.com.

      It is correct that the application currently requires elimination entities.

      • Julien Coudrette

        Thanks Ken. I have a client who is going to start their project soon and will likely need some IC eliminations, let me know if you would like to review their use case and I can connect you with the team.

        Julien

    • Tarun Gulati

      Thanks Ken,

      So how should the application be configured so that Tax is calculated correctly at Legal Entity level as well as group.

      Please advice.