How To Perform Intercompany Reconciliations in SAP

Intercompany reconciliation can be one of the most challenging parts of the month-end close in SAP. High transaction volumes, complex trading relationships and inconsistent account assignments can make it difficult for finance teams to identify and resolve differences efficiently.

BEST provides an Intercompany Matrix within BEST Balance Sheet Recons to help organisations manage these complex relationships directly within SAP.

Managing intercompany reconciliation becomes particularly difficult in large organisations because of the volume of accounts and transactions involved. When this is combined with different intercompany relationships and a wide range of account assignments, the reconciliation process can become highly complex.

In addition to standard intercompany transactions configured in SAP, organisations may process intercompany-related entries through logistics transactions, payments, recharges, distributions and other processes.

These transactions can be recorded across different account assignments, including:

• GL accounts
• Customer accounts
• Vendor accounts
• Trading partners
• Profit centres
• Segments

Finance teams may therefore need to run several reports across different SAP modules to understand the relationships between transactions, identify discrepancies and correct errors.

How Does the BEST Intercompany Matrix Support Reconciliation in SAP?

The BEST Intercompany Matrix allows complex combinations of account assignments to be grouped together to represent a particular intercompany relationship.

For each party in the relationship, users can select individual values or ranges from the following account assignments:

• Company codes
• GL accounts
• Customer accounts
• Vendor accounts
• Profit centres
• Segments

For example, an organisation could compare three customer accounts in one company code with a vendor account for a specific segment across two other company codes.

Creating this logical relationship brings the relevant transactions together and makes it easier to confirm whether the entries offset correctly. Any differences or problematic transactions become more visible and can be investigated.

The BEST Intercompany Matrix provides real-time reporting on intercompany transactions spanning multiple account types and account assignments. Reports can be run throughout the month, allowing finance teams to identify and correct issues before they create a backlog during the month-end close.

Detailed transactional information from different areas of SAP is combined into one consolidated report. Users can investigate discrepancies without needing to run multiple separate reports from different SAP modules.

The BEST Intercompany Matrix helps finance teams:

• Consolidate intercompany information from multiple account types
• Represent complex relationships between different entities and accounts
• Identify mismatched and problematic transactions more easily
• Investigate reconciliation differences within one consolidated report
• Resolve issues throughout the month instead of waiting until month-end
• Reduce manual reporting and reconciliation effort
• Support a faster and more controlled month-end close

Find out how BEST Balance Sheet Recons supports intercompany reconciliation in SAP, or contact BEST to arrange a demonstration.