The Intercompany (ICB) module in Cubix allows for the recording and management of intercompany transactions in a model. This includes reporting on all balances and differences, the automatic balancing of non-matched values and the elimination of inter and intra company amounts at sub-consolidation and full consolidation level. The ICB module is an optional feature and should only be enabled if it is required for a particular model.
If it is required it must be switched on when designing and building the model and further attributes will need to be configured in the variables dimension.
To enable the ICB module, click on the power icon in the journal tile. 
When the ICB module is enabled, the Journal module will be automatically enabled also, if it is not already active. The journal module is required as part of the ICB process to raise and post any automatic balancing adjustments and elimination adjustments.
With the ICB module enabled, the variable dimension must be edited to set some additional attributes. The variable list can be accessed directly from the ICB menu tile.
In the variable list, some additional columns will be displayed. If the journal module had not previously been set up, please refer to the journal section for guidance on how to do this.
The columns relating specifically to ICB are as follows:
| Is ICB | Identifies the variable as an intercompany type. You should only identify those variables that will be used to hold intercompany data. A variable can only hold one type of data. If it has been identified as an ICB variable, ALL entries against that variable must be entered or loaded as ICB data, complete with partner company information. |
| Paired ICB | Select a valid ICB variable as the pairing for this variable. This field indicates which ICB variable this variable will be matched with when calculating differences. Each ICB variable must match with either another variable (for example Inter Company Receivables matches with Inter Company Payables) or itself (for example Inter Company Loans). |
| Dominant Rank | Select one of the 4 types that control how this variable (and ultimately which entity) is to be affected in any automatic balancing that is performed. (See below) |
| Reciprocal Variable | Select a valid non-ICB variable.The Auto Balance function allows the user to automatically adjust ICB variances between entities and below a specific materiality. This is done by raising a journal, one side of which effects the nominated ICB variable and the other to a non-ICB (or reciprocal) variable. |
Dominant Rank, Reciprocal Variable and Auto Balance
The Auto Balance feature in Cubix will calculate any intercompany differences and then post an adjusting journal to remove the difference. To do this it needs to know where to post the adjustment.
The Dominant Rank and Reciprocal Variable define this. The Dominant Rank determines which entity will be changed to bring its ICB value to a match and the Reciprocal Variable defines which variable will take the opposite side of any ICB adjustment.
There are four options for Dominant Rank. Two relate to instances where one ICB variable is paired with another different ICB variable and two relate to instances where an ICB variable is paired with itself.
| Dominant Rank | Meaning |
|---|---|
| Dominant / Will Not Change | Used when paired with another ICB variable. Means that values on this ICB variable will not be changed. The change will be made to the entity with the paired variable. |
| Submissive / Change | Used when paired with another ICB variable. Means that values on this ICB variable will be changed. |
| Greater / Change | Used when paired with itself. Means that the entity with the greater value will be changed. |
| Lesser / Change | Used when paired with itself. Means that the entity with the smaller value will be changed. |
Other ICB Settings
The Advanced Features screen holds some settings relating specifically the ICB module.
- Auto Balance – Enable the Auto Balance feature for this model.
- Auto Reverse – Specifies that all journals created by the Auto Balance function will be reversing.
- Auto Post Journals – If this option is on, all journals created by the Auto Balance function will be automatically posted.
- Materiality – This figure sets the default threshold below which ICB discrepancies will be automatically balanced – for instance, if you set the materiality to 30, all ICB discrepancies less than 30 units of the BASE currency will be automatically removed by double-entry journals. The actual materiality value used can be over written by users at the time of processing. This is the default value.
Post your comment on this topic.