For intercompany account transactions, the IC Dimension is based on which Dimension?

For intercompany account transactions, the IC Dimension is based on which Dimension?

• A. Account
• B. Entity
• C. Scenario
• D. Cube

Answer: (B)

Intercompany accounting hinges on identifying who is sending and who is receiving within the corporate group. The IC Dimension is built to capture those relationships by tying into the Entity dimension, so every intercompany entry can specify both the issuing entity and the receiving entity. This entity-based grounding is what lets the system correctly map and later eliminate intercompany balances during consolidation. Using the Account dimension wouldn’t provide the two-party context needed, and Scenario or Cube describe data perspectives rather than the counterparties involved. This is why the intercompany dimension is based on the Entity dimension.

Intercompany accounting hinges on identifying who is sending and who is receiving within the corporate group. The IC Dimension is built to capture those relationships by tying into the Entity dimension, so every intercompany entry can specify both the issuing entity and the receiving entity. This entity-based grounding is what lets the system correctly map and later eliminate intercompany balances during consolidation. Using the Account dimension wouldn’t provide the two-party context needed, and Scenario or Cube describe data perspectives rather than the counterparties involved. This is why the intercompany dimension is based on the Entity dimension.