Which currency dimension must be chosen when performing an Intercompany Matching Report to reflect the reporting currency?

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

Answer: (C)

The currency dimension you use for an Intercompany Matching Report is the Entity Currency. This reflects the currency in which each entity actually books its transactions. Intercompany matching compares balances between entities in their own books, so viewing the report in the entity’s currency ensures you’re aligning like-for-like amounts before any consolidation or translation to the final reporting currency.

Using the Entity Currency keeps the reconciliation tied to how each entity records its intercompany obligations, which is essential because the consolidation to the reporting currency happens later and uses rate translations. If you looked at the report in the Input Currency, you’d see data in the currency you first entered, which may not correspond to the entity’s actual books. Viewing in the Reporting Currency would mix in translation effects, potentially obscuring mismatches that exist in the entities’ native currencies. The Parent Currency is not the standard basis for intercompany matching at the entity level; it’s not what the report uses to validate intercompany balances before consolidation.