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Delete IC error signs algorithm

Introduction

The following algorithm allows you to reallocate intercompany declarations on counterparty custom dimension 2, in IC Spreading data processing.

Algorithm properties

  • On each side of a relationship between entities, the system separates the custom dimensions 2 according to whether they have a positive total, a negative total or a total of nil (typically resulting from amounts off written directly on input)
  • Custom dimensions 2 with a sign are reallocated to those of the counterparty with the opposite sign following a specific allocation sequence.
  • Amounts related to custom dimensions 2 with a total of nil are allocated to the default.

With regard to how the system functions when the aforementioned option is NOT active, there are the following differences:

  • The step that associates custom dimensions 2 that are the same on both sides only takes place if the totals are of opposite signs on each side. Otherwise, those mini-relationships will remain empty.
  • If, after that step, one of the two sides remains without custom dimensions 2 or the desired sign, the counterparty’s remainder is allocated to the default custom dimension 2, ignoring the custom dimensions 2 on which the original declarations had been made.
  • The step that reallocates on a proportional basis never reallocates groups of custom dimensions 2 with different signs together, and always works in conditions that prevent any risk of incorrect signs or amounts.

Allocation sequence

  • Custom dimensions 2 with a sign are allocated according to the following steps:

  • If there are shared custom dimensions 2 on each side, the system allocates the lower module portion (comparing the declarations of the two entities) entirely to the same custom dimension 2. The remaining portion on the side of the higher module, where applicable, is dealt with in the next steps.

  • If there are no custom dimensions 2 of the opposite sign on the counterparty side, or all the custom dimensions 2 to be reallocated have been entirely reallocated in the previous step, then any remaining amounts are allocated to the default custom dimension 2.
  • Otherwise, the custom dimensions 2 intersect with remaining amounts in every way possible, using the counterparty declarations as weightings.