Intercompany and consolidation
Agree cross-entity activity, preserve each company’s books and review translation and eliminations in the group reporting currency.
SubmittedYou
- IT-49740 ENT-1967 350 3 d
- IT-52768 ENT-5456 960 12 d
- IT-45128 ENT-6166 900 2 d
- IT-20050 ENT-8192 580 9 d
- IT-72947 ENT-5322 880 1 d
IT-49740
- FromEntity
- ENT-1967
- ToEntity
- ENT-1627
- Type
- Sale
- Currency
- CRR-4712
- Amount
- 170
Confirmation and disputes
Submission posts the from-side journal. Counterparty AP Clerk confirms a charge; counterparty Treasury Analyst confirms funding or settlement. The confirmer differs from the raiser and has authority for that entity. Only confirmation authorises its to-side posting.
Intercompany Awaiting My Confirmation holds pending decisions. Rejection records a reason and routes to Controller. A correction or cancellation addresses affected journals through linked reversals or approved adjustments. It cannot silently edit one side while leaving the other unchanged.
Approval conditions
Controller: Approve JournalEntries, RevaluationRuns, BankReconciliations, Bills and credit memos above clerk limits, PayRuns and urgent PaymentsMade above AP Clerk limit, disputed IntercompanyTransactions, DepreciationRuns, AllocationRuns, AssetMovements, RateOverrides, ApprovalDelegations and waived CloseTasks
PendingApproval
- JE-21112 ENT-4622 150 4 d
- JE-58944 ENT-8633 450 14 d
- JE-49861 ENT-6361 380 9 d
- JE-89721 ENT-9342 30 13 d
- JE-88494 ENT-8666 440 2 d
JE-21112
- Entity
- ENT-4622
- Date
- 13 Sep
- Description
- Issue to WIP
- EntryType
- Standard
- Source
- Manual
Approval waits for the controller.
Balance agreement and revaluation
IntercompanyBalances compares both entities’ balances by pair, currency and reporting context. Timing differences retain their entity periods and evidence. Controller coordinates agreement or dispute resolution before consolidation readiness is satisfied.
Each entity revalues its foreign monetary balance under its own rate and accounting policy. RevaluationItems retains allocated current carrying values and RevaluationSettlements tracks their release on settlement. Agreement in transaction currency does not guarantee equal translated amounts: functional currencies, rate types, timing and policies can differ.
Approval conditions
Controller: Approve JournalEntries, RevaluationRuns, BankReconciliations, Bills and credit memos above clerk limits, PayRuns and urgent PaymentsMade above AP Clerk limit, disputed IntercompanyTransactions, DepreciationRuns, AllocationRuns, AssetMovements, RateOverrides, ApprovalDelegations and waived CloseTasks
PendingApproval
- RR-13590 ENT-4517 3 10 d
- RR-16212 ENT-7079 30 11 d
- RR-21123 ENT-1663 5 1 d
- RR-43075 ENT-6320 33 11 d
- RR-73165 ENT-1406 6 5 d
RR-13590
- Entity
- ENT-4517
- Period
- AP-120
- RunDate
- 07 Sep
- RateType
- Closing
- RateDate
- 10 Sep
Approval waits for the controller.
Build the consolidation
ConsolidationRuns identifies the Group unit and reporting context; its linked journals use an eligible group posting period. ConsolidationEntities records the included entity periods, close status, ownership and method used. Preliminary runs may use soft-closed entity data; final lock requires the stated hard-close and approval conditions.
TranslatedBalances retains each entity account’s source balance, rate type, used rate and reporting value. Closing and historical policies follow reviewed group configuration. Income uses actual dated rates or an assessed suitable average; material volatility can require dated translation. Any balancing translation adjustment is identified in the group’s designated account with its workings.
StatusOpenSoftClose
Eliminations and adjustments
EliminationEntries removes supported intra-group activity: sales and related cost, receivables and payables, funding balances, investment and equity, and other documented consolidation adjustments. Each entry retains its transaction or adjustment basis. Non-controlling interest uses the reviewed ownership policy.
A residual is investigated rather than presumed to disappear because the transaction matched. The correction may belong in an entity’s eligible period or in a documented group adjustment. Reasons, evidence, accounts and approval remain attached. Group journals never bypass the subsidiary’s hard-close controls.
EffectiveDate = today
| From Currency | To Currency | Rate Type | Effective Date | Rate |
|---|---|---|---|---|
| CRR-4856 | CRR-4510 | Spot | 11 Sep | 390 |
| CRR-6695 | CRR-7506 | Average | 24 Sep | 90 |
| CRR-8456 | CRR-6781 | Closing | 05 Sep | 40 |
| CRR-2603 | CRR-8182 | Budget | 27 Sep | 580 |
| CRR-6577 | CRR-3567 | Spot | 22 Sep | 40 |
| CRR-1003 | CRR-4211 | Average | 07 Sep | 360 |
Independent review and lock
The preparing Controller reviews the Consolidation Worksheet and submits the run. A different authorised Controller checks source periods, rates, translation, eliminations and adjustment approvals before signing. The preparer cannot approve their own result through delegation.
Lock freezes the reviewed run and its used-rate versions. An entity correction after a preliminary run supersedes that basis and requires recalculation. Later changes to locked output follow the logged correction path. Group statements and audit exports identify which approved version they use.
Ownership policies
Entities records ownership and consolidation method. Full, equity or any other supported treatment must be verified against the group’s accounting requirements during configuration. Sub-groups use an explicit reporting context and supported period mapping; selecting a method does not establish regulatory suitability.
Modules
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General ledger
Keep transaction amounts, functional values and approval evidence together across journals, close adjustments and group reporting.
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Currencies and rates
Keep the source, purpose and approval behind every exchange rate, from document posting to group reporting.
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Revaluation
Restate foreign-currency balances with clear sign conventions, item-level carrying values and independent approval.
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Receivables
Keep customer balances, cash received and exchange differences clear across invoicing, collection and settlement.
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Payables
Review supplier bills and payment authority, then reconcile cash, withholding and exchange differences without losing the original evidence.
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Banking
Reconcile each bank account in its own currency, recognise unmatched cash and retain the evidence behind transfers and payment outcomes.
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Intercompany and consolidation
Agree cross-entity activity, preserve each company’s books and review translation and eliminations in the group reporting currency.
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Period close
Coordinate close dependencies, review supporting workings and keep reporting periods separate from later postings.
Reports
All reportsIntercompany Reconciliation
Every entity pair and currency for the period with each side's balance, the difference and the agreement status, drillable to the transactions in the period with both entities' booked amounts, so the consolidation cannot start with an unexplained difference.
Roles and permissions
Owns the trial balance, the close and the consolidated statements. Approves what the GL Accountant, the Treasury Analyst and the clerks prepare: manual journals, revaluations, reconciliations, bills and credit memos above the clerk limit, pay runs above the clerk limit, and the period close itself.
Prepares manual journals, accruals and prepayments, bank reconciliations and the entity close tasks the Controller approves.
Owns currencies, exchange rates, bank accounts, transfers between currency accounts and the month-end revaluation. Prepares what the Controller approves.
Processes vendor bills in the vendor's currency, checks them against the order and receipt references, and builds pay runs.
Raises customer invoices and credit memos in the customer's currency, applies cash at the receipt rate and runs dunning.
Loads and maintains budget versions in entity currency, runs allocations and reads variance in reporting currency.
Owns tax codes, jurisdictions, filings and the tax accrual.
External or internal auditor. Read-only across the platform with access to the closing binder, revaluation workings and the audit trail.
Related processes
Multi-currency period close
Approve reconciliations, revalue supported balances, review the close and consolidate each entity into the group reporting currency.
6 stages · 3 approvals
Invoice to cash in a foreign currency
Invoice customers in their currency, record cash when it arrives, and reconcile each application with the amount owed and its current carrying value.
6 stages · 2 approvals
Bill to payment
Review supplier bills, approve spending within recorded authority, and track payments, currency differences and rejected-bank attempts through to reconciliation.
6 stages · 2 approvals