Intercompany Balances (ICB)

Cubix includes an Inter Company Balance (ICB) module which enables identification and elimination of all inter-company or business trading activities and balances to produce consolidated enterprise results.

If it is required, the ICB module is enabled as part of the initial model design and the variables to be treated as inter-company, along with the rules for processing and balancing them are defined at that time.

In brief, ICB processing works as follows:

• For the defined ICB variables, each entity’s data is entered against a partner entity.
• Each ICB variable must have a paired variable. This can be another ICB variable or it can be itself.
• When ICB matching takes place, the values for each pair of variables are compared across the entities with Cubix performing currency conversions as necessary to reconcile the data in the Base Currency.
• For entity & variable pairings where the values don’t match, journals can be raised to adjust one side of the ICB transaction such that it matches, the other side of the adjustment being posted to a non ICB variable.
• The Auto-Balance feature can be used instead of manually raising journals. This feature will automatically raise and if requested, post balancing journals according to some predefined rules.
• Once balanced, journals can be created and posted to eliminate ICB values at the appropriate consolidation level. These can be created manually or using the Auto-Eliminate process.