About the Inter Company Interest Report
If your company has multiple divisions, and you have a Netting arrangement with Scotiabank, you can use the Inter Company Interest Report to track interest earned and due between your company and the Bank, and among your company's business units.
The Inter Company Interest report consists of four separate reports, covering a period of up to 35 business days.
Report 1, which provides detailed daily information, is not available online, but a hard copy can be received once per month. The other three reports, which are based on the information in Report 1, are available online.
ICI Report 1 – Detailed Daily Information (not available online)
This report provides detailed daily information about
interest earned and interest due among business units within a company, and
between the company and the Bank. The
report uses the following information:
· Final closing daily balances for all accounts.
· Interest rates for deposits to the Bank.
· Interest rates for loans from the Bank.
· Interest rates for lending and borrowing among a company's business units.
Interest rates may be either fixed or variable with respect to the Bank's Prime Rate.
Note: Different interest rates can be used for lending and borrowing among a company’s business units.
Each day, using the final closing balances, ScotiaConnect:
· Offsets any overdrafts against credit deposit balances among a company's business units in proportion to the closing credit balance of the particular unit. This means that all the units with credit closing balance may lend but the unit with a larger credit balance will be allowed to lend a larger amount.
· Calculates the interest earned and due among business units.
· Calculates the interest earned from the Bank by individual business units on net deposit balances.
· Calculates the interest due to the Bank from individual business units on net overdrafts.
Scotiabank will send a hard copy of this report to your branch once per month or you can arrange to have the report produced according to your company's accounting cycle. For customers who do not require Report 1, there is also an option to suppress the generation of this report.
ICI Report 2 – Division Report
For each day in the period, this one-page report
provides highlights from ICI Report 1, and includes the following
· Closing balance
· Interest due to the Bank
· Interest earned from the Bank
· Interest due to other business unit
· Interest earned from other business units
· The total for the period for each type of interest listed above
ICI Report 3 – Matrix Report
The Inter Company Interest Matrix shows information about interest earned and due among business units of a company only. It does not include any information about interest earned from or due to the Bank.
report includes the following information:
· The total interest earned by each business unit, and the business units from which the interest was earned.
· The total interest due to each business unit, and the business units to which the interest is due.
ICI Report 4 – Summary Report
The Summary Report includes the following information for each business unit:
· Summary of interest earned from other business units
· Summary of interest earned from the Bank
· The total interest earned
· Summary of interest due to other business units
· Summary of interest due to the Bank
· The total interest due