Group Journals

Each closing of the books requires journals for items such as intercompany receivables, liabilities, dividends, interest, intercompany invoicing, internal profit on fixed assets, goods in transit and so on.

IBM® Cognos Controller handles all these group items as group journals, unless they are considered as acquisition calculations, intercompany balances and intercompany profit that are eliminated automatically.

Three Ways to Create Group Journals

Group journals are created in the group currency and there are three ways to create the journals:

  • Manual entry
  • Copying from earlier periods
  • Copying from another group company
Note: Group Journals update the group company (company defined as company type Group).

Reconciliation

When you have created the group journals, you should run the reconciliation between accounts and opening balances for the group company before you can start to consolidate data.

For more information, see Reconciling between Accounts and Opening Balances.

Group Journals and Consolidation

Group journals are included in the case of acquisition calculations but not in intercompany eliminations. The following paragraphs are some alternatives on how to handle adjustments from the group:

  • Use company journals when possible. You will then get the adjustments stored on each company it concerns. Company journals are included in both acquisition calculations and intercompany eliminations.
  • Create a fictive company with a subsidiary as the company type, select the appropriate consolidation method, ownership percentage etc. Use this company to enter your group journals as company journals. The drawback is when you reorganize your company structure.