International entity groups

How Intercompany Reconciliation is set up for you

An international group may have a parent in one country and subsidiaries in several others. The entity master records each entity's country and base currency, while the finance desks record charges and settlement amounts. Reconciliation needs a clear rule for how the group calculates and documents the amount when entity currencies differ. The records provide a place to attach that supporting calculation and compare it with charge and bank evidence.

Pilot a charge between two named entities that use different base currencies. Agree who provides the conversion amount, which date and rate source apply, and where the approved calculation is stored. Prepare the charge records with one shared partner reference so Senior Accountant can compare the two sides. Controller approves the payable after checking the amount and evidence. Receivables Accountant issues the receivable through its guarded action.

For the settlement, record the direction, method and amount agreed under the group's treasury policy. Use the release action and inspect its receipt. Compare the bank reference with the underlying statement before treating the movement as reconciled. If the two sides show different amounts, record the reason and owner of the correction. Include a late-period example in the pilot so finance agrees which period owns a cross-border difference. Keep the tax and ledger-account decisions with the people authorized to make them.