Hubbell Policies

DOMESTIC CROSS-COMPANY TRANSACTIONS POLICY

English

Owner : Vice President, Controller

Last Review: 2014.08.10

FIN – 17

Department: Finance

POLICY This policy and related procedure documents the requirements of domestic cross-company transactions. The procedure documents the threshold, authorization, documentation requirements and also process for both SAP and non-SAP company codes. SCOPE This policy and procedure applies to all domestic cross-company transactions, with the exception of the excluded transactions documented in the following procedure. PURPOSE The purpose of this policy and related procedure is to document the process for domestic cross-company transactions, including the authorization and documentation requirements. PROCEDURE Scope This procedure applies to manual journal entries related to cross-company transactions for all domestic business units. This procedure EXCLUDES the following transactions. • Cash postings • Accounts Receivable Postings • Accounts Payable Postings • Fixed Assets Postings • Payroll Entries • Corporate designated allocations (i.e. recurring charges sent by the Corporate office such as, but not limited to, insurance allocations, HUBS IT allocations, benefit allocations, pension allocations) • CASS freight charges • Automated | System-generated cross-company entries Threshold Only manual cross-company transactions with amounts greater than $500 should be posted between business units. Manual cross-company transactions related to different business purposes or activities should not be combined into a single transaction when determining whether a cross-company transaction exceeds this threshold. Manual cross company transactions below the $500 threshold for one month cannot be aggregated and combined with manual cross-company transactions in a different reporting period when determining whether a cross-company transaction exceeds the threshold. Authorization Standard cross-company entries recurring on a regular basis should be agreed upon at the time of the initial

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