Analyzing Intercompany Data

The Intercompany Analysis App is used to analyze intercompany detail that has been input into the Longview system.

Understanding Intercompany Analysis Execution

The intercompany analysis app executes in a manner dependent on the elimination selected and the ‘Analyze based on credit balance accounts’ option.

An elimination is two-sided, if:

1. The elimination contains two or more accounts.
2. The accounts in the elimination are a mix of DEBIT and CREDIT balance types.

An example of a two-sided elimination is intercompany receivables, where one entity reports the receivable and the other entity reports the payable as a separate account.

An elimination is one-sided, if:

1. The elimination contains only accounts of the same balance type.
2. Only one side of the transaction enters values.

An example of a one-sided elimination is intercompany revenue where only the selling entity reports the transaction.

An elimination is self-eliminating, if:

1. The elimination contains only accounts of the same balance type.
2. Both sides of the transaction enter values.

An example of a self-eliminating elimination is intercompany loans, where both entities enter values in the same account (or group of accounts) with opposite balances (positive vs. negative).

If the selected elimination is two-sided:

1. The accounts are divided into DEBIT and CREDIT balance types.
   1. DEBIT accounts are grouped as Reporter accounts.
   2. CREDIT accounts are grouped as Contra Reporter accounts.
2. For the selected Reporter, only DEBIT accounts (e.g. intercompany receivables) are reported, with the corresponding Contra Reporter balance.
3. If the Contra Reporter has entered a transaction in a CREDIT account (e.g. intercompany payables), it will be displayed, even if the Reporter has not entered the DEBIT side of the transaction.

   Note: If the selected Reporter is a parent, all its leaf level descendants are reported.

4. If the Contra Reporter is restricted, only transactions with the selected Contra Reporter are displayed.

   Note: If the selected Contra Reporter is a parent, all its leaf level descendants are reported.

If the selected elimination is two-sided and the ‘Analyze based on credit balance accounts’ option is selected:

1. The accounts are divided into DEBIT and CREDIT balance types.
   1. CREDIT accounts are grouped as Reporter accounts.
   2. DEBIT accounts are grouped as Contra Reporter accounts.
2. For the selected Reporter, only CREDIT accounts (e.g. intercompany payables) are reported, with the corresponding Contra Reporter balance.

   Note: If the selected Reporter is a parent, all its leaf level descendants are reported.

3. If the Contra Reporter has entered a transaction in a DEBIT account (e.g. intercompany receivables), it will be displayed, even if the Reporter has not entered the CREDIT side of the transaction.
4. If the Contra Reporter is restricted, only transactions with the selected Contra Reporter are displayed.

   Note: If the selected Contra Reporter is a parent, all its leaf level descendants are reported.

If the selected elimination is self-eliminating:

1. The same accounts are used for both the Reporter and Contra Reporter.
2. Positive balances are reported in the Reporter amount column.
3. Negative balances are reported in the Contra Reporter amount column.
4. The ‘Analyze based on credit balance accounts’ option has no impact.

   Note: In the case of a one-sided elimination the reporter or contra reporter amount will normally be zero, depending on the sign of the amount.

If the selected elimination is one-sided:

1. Only the reporter amount is displayed.
2. There is no variance displayed and the variance threshold is ignored.

   Note: You must select the ‘One-sided elimination’ option in the Intercompany Analysis dialog.

Making Intercompany Analysis Dialog Selections

The intercompany Analysis dialog will display allowing you to make selections on what intercompany data you would like to analyze.

1. Complete the following sections:

   1. Elimination: Select the Elimination you would like to analyze.

      Note: Elimination objects must first be configured.
      For more information, see “Working with Intercompany Eliminations” in the Longview Application Administrators Guide.

   2. One-sided elimination: If the selected elimination is one-sided (only one entity reports the transaction), check this option.

2. Once the required selections have been made, click OK. The Intercompany Analysis table will be displayed.

Viewing the Intercompany Analysis Table

The intercompany analysis table appears within a tab that displays the elimination selected. The table contains the following columns:

Viewing the Intercompany Details

From within the Intercompany Analysis table, you can right-click on any row in order to view the intercompany detail. This will provide additional information around which specific symbols the intercompany data has been loaded to.

To access Intercompany Details:

1. Right-click on a row in the Intercompany Analysis table.

2. Select View Intercompany Details. A new table will open in a split-screen showing the intercompany details for the selected row. The table contains the following columns:

   1. Reporter: The name of the entity of the selected row. The reporter is the one that reported the debit side of the transaction.

      Note: This will be the credit side of the transaction if the ‘Analyze based on contra reporter amounts’ option is selected.

   2. Reporter Description: The description of the reporter entity of the selected row.

   3. Reporter Account: The name of the reporter account to which the intercompany transaction was loaded.

      Note: There can be multiple lines of detail for each reporter account that makes up the row that was selected to be analyzed.

   4. Reporter Amount (Indicates whether this is a debit (Dr) or credit (Cr) amount): The reporter amount for that transaction.

      Note: If one-sided elimination was selected, the (Dr) or (Cr) indicator will not be displayed.

   5. Contra Reporter: The contra entity of the selected row.

   6. Contra Reporter Description: The description of the contra entity of the selected row.

   7. Contra Account: The name of the contra account to which the intercompany transaction was loaded.

      Note: There can be multiple lines of detail for each contra account that makes up the row that was selected to be analyzed. This column does not appear if the one-sided elimination option is selected.

   8. Contra Reporter Amount (Indicates whether this is a debit (Dr) or credit (Cr) amount): The contra amount for that transaction.

      Note: This column does not appear if the one-sided elimination option is selected.

   9. Extra Custom Dimensions: If your system has any custom dimensions, and intercompany reporting is configured to report on more than a single leaf symbol, this column will display showing the symbol for which the intercompany transaction was input.