Performing Intercompany Matching and Reconciliation

Information about the reconciliation process is available in the following apps:

• To monitor the matching status and reconciliation status for your specified reconciliation case, fiscal year/period, and organizational units, use the Manage Reconciliation Close app.
• For an overview of the reconciliation process, use the Manage Reconciliation Close app.
• For a more detailed perspective, use the Reconciliation Balances app.

Matching status is calculated based on the leading display group. For example, for the leading display group AR (accounts receivable) → AP (accounts payable), the number of Not Assigned items of a company is calculated with the following logic: all unassigned AR items of the company plus all unassigned AP items of its trading partners.

Note

Because items with status 00 New have not been processed by the matching engine, they are not reflected in the calculation of the Not Assigned items.

The YTD and period amounts for each organizational unit and all its partner units are displayed in the Reconciliation Balances report. To access the Reconciliation Balances report, in the Reconciliation Status Overview, choose the Details icon (>) for the relevant organizational unit data row.

With the Reconciliation Balances app, you can display the YTD and period amounts of your specified organizational units and their partner units and their amount differences in a specific fiscal year/period.

In the Reconciliation Balances example, two different measures are being used to display the intercompany values in different currencies. For example:

1. TSL Closing measure:
   • Displays the true (without any currency impact) variance.
   • Based on transaction currency values at the closing rate. -5,395 is the transaction/true variance for DE02 and US02.
2. KSL Amount in Global Currency measure:
   • Displays the total variance.
   • Based on local currency values at the closing rate. -7,087 is the total variance for DE02 and US02.

In the Reconciliation Balances app, differences by consolidation unit and partner unit can be evaluated. The differences in transaction currency or group currency are available.

You can perform a matching run manually or automatically via background jobs.

You can run matching from several apps:

• Define Matching Methods

• Manage Assignments - By Matching Method

• Manage Assignments - By Reconciliation Case

• Schedule Matching Runs

In order to use the Manage Assignments - By Reconciliation Case app to view matched items and assign the items that are not matched, complete the following steps:

1. Select the reconciliation case you want to use.
2. In the mandatory filter fields Display Group, Amount Field, and Currency, enter the filter values.
3. Choose Go to show all unassigned items for your selected leading unit and all its partner units who have transactions with the leading unit during the relevant period.
4. Choose Auto Match to run matching for unmatched items, so that the items are compared by all matching rules sequentially.
5. Once the matching run is finished successfully, you can check any matched items and their generated assignment numbers in the Assignments table in the lower part of the screen. From there, you can proceed with manual assignments, adjustments, or approval as necessary.

In the Manage assignments by reconciliation case, there are two main options to assign leading and partner unit transactions:

1. Manual matching
2. Auto-Match is used to assign the leading and partner items automatically.

Note

In the Manage assignments by reconciliation case example, the assignment page is displayed so that you can see how you might do manual matching. In most cases, however, this is an automated process.

For any items, matched or unmatched, you can take the following actions (non-workflow related):

• Assign: This is a manual match in case the matching rules don't apply. If you think certain unmatched items should be exempted from matching rule validation and matched manually, for example, when amounts agree but with different currencies due to the negligence in posting, you can select the items and choose Assign to match them manually and give them an assignment number. The assigned items are then moved to the list in the lower area table called Assignments.
• Communicate:
  • Add Note: Add a public comment and optionally, a due date. This option results in the communication status Note Added. Based on your set due date, any overdue matching items are highlighted in red. These are only viewed from the assigned items log.
  • Send Notification: Send a notification to selected recipients, and optionally, a due date. As a result, the communication status changes to Notification Sent and the recipients receive the notification in the header bar of the SAP Fiori launchpad.
  • Send Email: Send an email to an SAP S/4HANA user.
  • Set to Done: When a certain comment or notification is resolved, you can set the item to done so that the due date and overdue alarm are cleared.

With the Manage the Reconciliation Close app, you can set the reconciliation close status, view reconciliation differences by reason code, trigger an approval workflow, and generate reconciliation statements.

The following animation explains how to use the Manage Reconciliation Close app.

When closing the reconciliation, any variances outside the tolerance will generate an approval workflow for users who are on the reconciliation team. In the resulting inbox, the trading partner data is displayed. The user can then approve or reject the approval request. They can also download a PDF with the summary.

Workflow Status: This status is relevant for the reconciliation cases that require an approval workflow to close reconciliation. The possible workflow statuses are Waiting, Ready, In Process, Error, and Completed. Only when the workflow is completed, that is, the reconciliation close request is approved, can the reconciliation close status be set to Closed.

Elimination Status: This is the execution status of the IC Balance Sheet Elimination consolidation monitor task. It's only relevant for the reconciliation case that is consolidation related and is assigned with the elimination method SC001 in configuration step Define Elimination Methods. The following statuses are possible:

• Initial: The elimination task hasn't been executed yet.

• In Process: The elimination task is initiated and running.

• Completed: The elimination task has finished successfully.

• Failed: The elimination task ran into an error, for example, due to system error or misconfiguration. The error details can be viewed in the Task Logs app.

• Outdated: The elimination task was once executed and finished successfully, but after that, a new matching run was triggered and brought new posting data, which makes the prior Completed status outdated. Therefore, the elimination task needs to be executed again.