Which currency dimension member should be selected when running an Intercompany Matching Report?

• A. Input Currency
• B. Reporting Currency
• C. Entity Currency
• D. Parent Currency

Answer: (C)

The key idea is that intercompany reconciliation is done against each entity’s own books, so viewing the report in the entity’s own functional currency provides the clearest, most accurate basis for matching.

Entity Currency represents the currency in which each entity records its transactions. When you run the Intercompany Matching Report, you want to see intercompany balances in the currency of the entity that holds the transaction entries. This avoids distortions from currency translation or consolidation steps and makes it straightforward to verify that both sides of an intercompany entry agree.

Using other currencies would blur the reconciliation: Reporting Currency shows a consolidated/translated view, which can mask mismatches in the individual entity records; Input Currency reflects where data was entered and can vary by user or period; and Parent Currency is the consolidation currency, not the entity’s own books. Therefore, the appropriate choice is the entity’s currency.