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Validation control and Intercompany Matching

968598
968598 Member Posts: 68
edited May 19, 2014 6:38AM in Financial Consolidation

Dear experts... quick and straight to the point:

is there a way in HFM to inhibit promotion by a legal entity to the next review level in case its intercompany balances are not matched with all the other parties?

Many Thanks for your support.

Answers

  • HFM_CZ
    HFM_CZ Member Posts: 87 Bronze Badge

    No, there is no built-in functionality for that. You may consider writing a custom validation rule, but from what I've heard nobody does it like that.

    Cheers, Igor

  • Hi,

    Although there's no built-in functionality, you could still do something in this direction. One way to do it is to use the ICT-module for intercompany matching. You can set up the reporting so that intercompany balances in the balance sheet etc. can only be reported using the ICT-module. In the period settings in the module you turn "match before posting" option to Yes. Then you build a custom validation rule checking if balance sheet balance etc. necessary things.

    This way the units must report the ICT-balances in order for the balance sheet to balance and they need to be matched before the units are able to post them (ie. include them in the balance sheet). Naturally, there are always ways around this, like reporting inter-company receivables/payables as third party, but  that's wrong reporting... :-)

  • Thanos A
    Thanos A Consolidation System Manager Member Posts: 1,440 Silver Trophy

    Hi there,

    Based on the experience, the bast way to handle your requirement is to write a custom validation (as @HFM_CZ said) but trigger it only at Review Level 1. The reason is that this validation is time consuming, so you want to trigger it only when entities load their ICP balances.

    Kind regards,

    Thanos

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