Describing Matching and Reconciliating Intercompany Transactions

Objectives

After completing this lesson, you will be able to:

  • Outline intercompany matching and reconciliation (ICMR)
  • Describe the main features and advantages of the ICMR tool

Intercompany Transactions – Matching and Reconciliating

The Need for Intercompany Matching and Reconciliation (ICMR)

Intercompany reconciliation is labor intensive and time-consuming. Data discrepancies requires offline communication to find the root causes and to resolve.

After data release, the group accountant receives a large volume of data making it impossible to explain why inconsistencies and mismatches arose.

As a result, there is a:

  • struggle to find sufficient data to identify and explain discrepancies.

  • lack of transparency between the subsidiaries and between the subsidiaries and the parent company.

  • Challenge to avoid significant delay in closing the books.

To help you overcome these problems, SAP offers Intercompany Matching and Reconciliation (ICMR) supporting you to speed up the intercompany reconciliation process from company close to corporate close.

ICMR is a single tool in the reconciliation process that can be used for:

  • Local financial close of companies.

  • Group financial close of a corporate group based on organizational dimensions such as consolidation unit, profit center, and segment.

ICMR – Process Breakdown

The following animation details the advantages of Intercompany Matching and Reconciliation:

ICMR Process Steps

The figure gives a quick overview of the four main ICMR process steps:

From left to right, collect data, match documents, solve discrepancies, check reconciliation balances.

Log in to track your progress & complete quizzes