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- Intercompany Reconciliation
- Who it's for
- Multi-entity service groups
Multi-entity service groups
A group that shares finance, technology or administrative services across entities needs each charge to identify the correct payer, payee and accounting period. Intercompany Reconciliation keeps the payable, receivable and settlement records available to the finance people who prepare and review that exchange. The team can follow a charge from its partner reference through approval, issue and release without losing the separate decision and operation records.
How Intercompany Reconciliation is set up for you
Shared service charge
Receivables Accountant raises the charge from the providing entity; Payables Accountant records the received side against the paying entity.
Entity responsibility
Admin keeps the parent, subsidiary or division record current, including base currency and status.
Period review
Senior Accountant compares the two charge sides and any related journal before Controller records close notes.
A group that shares finance, technology or administrative services across entities needs each charge to identify the correct payer, payee and accounting period. Intercompany Reconciliation keeps the payable, receivable and settlement records available to the finance people who prepare and review that exchange. The team can follow a charge from its partner reference through approval, issue and release without losing the separate decision and operation records.
Begin with one recurring charge between two entities. Agree a common partner reference and an account mapping for its lines. Prepare the receivable and payable with the correct trading entity on each side. Issue the receivable through its action, submit the payable and have Controller approve it through the payable action. Check both operation receipts and the approval decision. Then schedule one linked settlement and review the remaining balances after release.
Use a second example where the amount differs between the two desks. Keep the difference visible and give one person responsibility for resolving it. This is also the time to agree which system produces the underlying service charge and which bank process confirms the cash movement. Import only the reference data and opening items the team can reconcile to those sources. The first cycle should end with a traceable account, partner and period for every accepted charge.
Features to start with
Trading entities and partners
Keep the trading entity and counterparty behind every intercompany charge clear.
Intercompany receivables
Issue a charge to another entity and follow the open counterparty balance.
Settlement and netting review
Schedule money movement and compare linked payables and receivables.
Roles on the team
- Admin
- Maintains access, trading entity setup and reference data.
- Payables Accountant
- Prepares intercompany charges and routes them for a decision.
- Receivables Accountant
- Issues intercompany receivables and follows outstanding balances.
- Settlement Analyst
- Schedules and releases linked intercompany settlements.
Set up Intercompany Reconciliation your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.