Hubbell Policies

transaction between the sending and receiving company's Accounting Departments. Non-standard cross-company entries must be confirmed by the correct functional area of the sending company and agreed upon by the receiving company’s Account Department prior to posting. An email is sufficient evidence of acceptance of the charge. If the Accounting Department is responsible for both the sending and receiving companies involved in the cross company transaction, then agreement is not required, but documentation and support for the entry must be maintained with the company sending the cross-company charge. Documentation Backup documentation for cross-company entries must be submitted to the Accounting Department of the receiving company prior to the posting of the cross-company journal entry. The backup support should include adequate information so that the receiving company can validate the charge and determine the proper general ledger posting on the receiving company's ledger. The documentation must indicate the name of the approving individual from the receiving company. All approvals must be maintained in accordance with the Company's legal documentation retention requirements and can be included as part of the journal entry support or the month-end closing checklist. Business units shall refer to the Transfer Pricing Policy to determine if a cross-company transaction is subject to transfer pricing requirements. The basis for any transfer pricing required to be applied to the cross-company transaction shall be included in the documentation described above. Posting Cross-Company Entries a) Between SAP companies: Transactions between SAP company codes have to be posted using cross-company posting functionality in SAP. All transactions must be posted to the intercompany clearing account except if the sending company has proper authorization in SAP to post to another general ledger account. This authorization to post on the general ledger of another company code must be approved by the Local Accounting Manager. If the intercompany allocation account is used by the sending company it has to be communicated to the Accounting Department of the receiving company. The same intercompany allocation account must be used by the receiving company to ensure proper elimination during monthly financial reporting consolidation. b) Between SAP company and Non-SAP company: Transactions initiated by a non-SAP company and sent to an SAP company, or vice versa, must be entered into the Hubbell Intercompany Balancing System ("HIBS") system. Transactions initiated by an SAP company code to the non-SAP company require proper document type "ZG" so the HIBS transaction can be created in SAP. c) Between Non-SAP company and Non-SAP company: Transactions initiated by a non-SAP Company to another non-SAP company must be entered into the HIBS system. ADMINISTRATION Roles and Responsibilities. Business unit controllers have responsibility in overseeing compliance with this policy. Monitoring, Evaluation and Review. Exceptions granted by the Corporate Controller must be retained by the business unit as supporting documentation. Exceptions. In order to obtain an exception to the Procedure a written request must be submitted to the Corporate Controller that contains a compelling business reason why the business unit needs to post a manual cross-company transaction in an amount $500 or lower to another business unit.

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