Intercompany to elimination

Step by step

1. Raise AR Clerk or Treasury Analyst

   AR Clerk raises a sale or recharge; Treasury Analyst raises a loan, repayment, cash transfer or settlement. The transaction names both entities, the agreed currency and amount, the transaction date, each entity’s posting period and the group reporting context. Supporting evidence identifies the charge or movement.

   • Updates Intercompany transactions, Accounting periods, Entities

2. Submit and post the from side AR Clerk or Treasury Analyst

   The originating AR Clerk or Treasury Analyst submits. The from-entity journal posts at that entity’s approved rate into its eligible period. The counterparty receives the request in Intercompany Awaiting My Confirmation. Submission alone does not post into the counterparty’s ledger.

   • Updates Intercompany transactions, Journal entries, Journal entry lines

3. Confirm AP Clerk or Treasury Analyst

   Counterparty AP Clerk confirms a sale or recharge; counterparty Treasury Analyst confirms financing, transfer or settlement activity. The confirmer differs from the raiser and has authority for that entity. Confirmation checks its posting period and rate before the to-side journal posts. A rejection records the dispute and reason.

   • Updates Intercompany transactions, Approval decisions, Journal entries, Journal entry lines
   ApprovalA person approves before the work moves on.

4. Resolve disputes Controller

   Controller reviews differences in amount, acceptance, rate or timing. Corrections preserve original evidence and reverse affected postings where necessary. A period mismatch is mapped to the appropriate group reporting period or supported by an approved adjustment; it is not hidden by assigning both entities one period.

   • Updates Intercompany transactions, Journal entries
   ApprovalA person approves before the work moves on.

5. Agree balances Controller

   Controller reviews the proposed balance per entity pair and currency with both entity owners. They agree the balance or retain an explained dispute. Revaluation uses each entity’s applicable rate and carrying basis; agreement in transaction currency does not guarantee identical reporting-currency results.

   • Updates Intercompany balances, Revaluation runs, Revaluation items
   ApprovalA person approves before the work moves on.

6. Settle and eliminate Controller

   Treasury Analyst prepares settlement through the authorised banking process. Controller prepares consolidation eliminations in the group unit, tracing each entry to transactions and balance agreements. Any translation or timing residue follows a documented adjustment and independent-review path before consolidation can lock.

   • Updates Intercompany transactions, Payments made, Payments received, Elimination entries, Consolidation runs

AR Clerk

Raises sales and recharges.

Treasury Analyst

Raises funding and settlement activity and confirms those transactions for the counterparty.

AP Clerk

Confirms counterparty sales and recharges.

Controller

Resolves disputes, approves balance agreements and prepares eliminations for independent review.

Auditor

Reads the reconciliation trail.