Intercompany reconciliation

Capture the reporting entity, counterparty, period, account pair, currency and stable source document identity. Normalise entity direction when pairing reciprocal records so the same invoice does not become two independent matches. Similar totals or a shared counterparty name are insufficient to establish a match.

Each source balance belongs to one active reconciliation allocation within the close run. If several source documents are aggregated, retain their identities and amounts in the reconciliation evidence. A repeated inbound event or a second worker must not consume the same source side twice or produce another elimination for an already matched event.

The comparison preserves both reported sides and their signed reporting-currency amounts. Timing, missing entries, classifications and FX differences remain distinct reasons. Each Subsidiary Controller can see and respond to their side of a shared dispute without receiving general access to the other entity’s books.

A tolerance determines which discrepancies can follow the configured exception route. It does not turn unequal amounts into a balanced journal. A within-tolerance difference still needs an approved disposition and, where necessary, a separate balanced adjustment. An unexplained difference remains unresolved even if the display rounds it to zero.

The matcher prepares elimination candidates linked to the reconciled source identities and selected calculation run. The proposal retains debit and credit lines in USD and the underlying account mapping. It affects the group consolidation layer; it does not send a journal back to either subsidiary ledger.

The Consolidation Manager independently reviews an analyst-prepared elimination revision. A manual entry prepared by the manager requires a different Group Controller / Corporate CFO as reviewer. Posted elimination lines are immutable, and a correction uses a linked reversal followed by a reviewed replacement. A change to the underlying reconciliation invalidates an unposted approval.

Investment and equity eliminations, intra-group profit and acquisition adjustments require the applicable approved workpaper. An ownership percentage alone cannot supply acquisition values, fair-value adjustments or a universal elimination formula. Retain the method and supporting evidence before bringing the candidate into the group result.

For an ordinary reciprocal receivable and payable, the accepted elimination removes the supported paired balances. If one side is absent, the software must not invent a matching posting. The team either obtains the missing source entry or records the authorised correction and explanation through the proper ledger or consolidation path.

The consolidated trial balance includes the posted elimination history belonging to its chosen run. A reversed original and its posted opposite both remain in that history, giving a net zero effect when fully reversed; omitting only the original would create a false balance. Every debit and credit should trace back to a match or approved workpaper. Closed differences, overrides and reversals retain the actor, reason and earlier evidence. The report can show the amount removed from the group without presenting an override as agreement between the subsidiary ledgers. Publishing remains blocked while a required material exception lacks an approved resolution.

• Unmatched IC Transactions — Review the work and supporting records for this module.