What Is Intercompany Reconciliation
What Is Intercompany Reconciliation
What Is Intercompany Reconciliation
What we see in the following print screen are tiles of the S/4HANA interface that
access the various applications within ICMR. Using these applications, an
administrator can setup various features of ICMR as well as an end user who would
be able to use other applications to review balances or transactions.
In SAP S/4HANA, the common universal journal form (ACDOCA) was introduced.
This not only simplifies the architecture of the application, but it also provides more
possibilities. In particular, the most interesting is real-time analysis.
The print screen below is the starting point for reviewing these balances. It is the
reconciliation status overview application, which provides a single view to evaluate
and reconcile data in aggregate form at the company level. From this view, the
accountant can drill down from the summary data view to balances at the account
level detail and then on to specific transactions that make up a balance.
Once an accountant has drilled down from an entity counterparty relationship, they
are taken to the Reconciliation Balances application, which can be seen in the
following print screen. At this point, we can see the balances at the account level.
The accountant can review amounts in the transaction currency of the entity’s or the
group’s presentation currency by selecting the TSL option to the right of the screen.
It is also possible to re-view all balances either as year to date positions, periodically
or as last loaded values. These different views provide the accountant with the
maximum amount of information to resolve a mis-matched balance.
Finally, the accountant can then drill down to the transaction level from the balance
level. At this point, non-assigned transactions can be reviewed and assigned by both
parties. Furthermore, document line items belonging to the same business
transaction are grouped under the assignment number.
A major advantage of using ICMR is the availability of process states at the
transaction level. The transaction matching portion of the application assigns each
trade to a specific state. If a transaction reconciles, the trades are assigned a status
of matching.
The valuable part is when a trade does not reconcile. If for example, if a trade has
matching values but the entity and counterparty have recorded different currencies,
ICMR can be setup to detect this difference and can then flag that transaction with a
specific status. By assigning different states to transactions, the user is guided to a
resolution in the matching process. These different states then guide the
accountants involved to take specific actions to resolve a difference.
Furthermore, you can add workflow to the matching process and apply automatic
adjustment logic which can be defined to resolve specific differences automatically in
a controlled and traceable manner.
The following figure illustrates how ICMR is integrated into the group close process,
with step-by-step instructions:
You can perform document matching on the collected data. For identified data
differences, adjustment postings can be initiated automatically or through a workflow.
After performing group adjustment postings and currency conversion tasks, you can
view the reconciliation results by transaction currency (TC) or group currency (GC).
ICMR has the potential increase the speed and accuracy of the intercompany
matching process for a group. The main benefits of ICMR include ability to check
and automate reconciliation at the transaction level. This review process can be
performed throughout an entire month so that when month end closing process
starts most of the matching process has already been completed.
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