Performing Intercompany Reconciliations in SAP can be one of your challenging month end General Ledger reconciliations. 50% of businesses consider Intercompany Reconciliations in SAP to be their biggest month end headache. BEST has created the Intercompany Matrix within the BEST GL Reconciliations Module to tackle this month end nightmare.

So why is managing Intercompany Reconciliations in SAP so difficult? In most large organisations, the first issue is volumes of both of accounts and transactions. These alone make the reconciliation process difficult . But when you overlay the diverse nature of Intercompany Relationships, and the variety of account assignments – it becomes a complicated proposition.

In addition to the normal SAP Standard configured Intercompany transactions, there are often additional intercompany related transactions, such as those created via logistic transactions, payments, recharges, and distributions – to name a few. All these transactions can be handled in a myriad of different ways and recorded across various account assignments, such as GL Accounts, Customer Accounts, Vendor Accounts, Trading Partners and Segments. This often results in multiple reports required to be run, across different SAP modules, to make sense of the relationships – and to identify and correct errors.

So how does the BEST Intercompany Matrix assist with Intercompany Reconciliations in SAP?

The BEST Intercompany Matrix allows for complex subsets of account assignments to be grouped to represent a specific Intercompany relationship. This enables specific transactions to be grouped together for reconciliation. Therefore, for each party in the relationship you can select individual or ranges of the following account assignments:

  • Company Codes
  • GL Accounts
  • Customers
  • Vendors
  • Profit Centres
  • Segments

One could then, for example, compare 3 Customer accounts in one company, to one Vendor account for a specific segment in two other companies. Creating a logical relationship ensures that all transactions should offset, to create an easy “visual” balancing in total. And, to identify the problem transactions.

In summary, the BEST Intercompany Matrix allows for real time reporting on your Intercompany transactions that may span multiple account types and account assignments. The report can be run anytime to correct issues throughout the month and avoid a backlog addressed only during a pressurised month end. It combines detailed transactional information across various SAP modules that can be viewed in one consolidated report. Therefore, issues can be investigated right there and then, without having to run additional and separate SAP Module specific reports to perform the reconciliation.

The BEST intercompany Matrix is designed to take the complexity out of your Intercompany Reconciliations in SAP and reduce your month end close timelines.

Find out more how BEST can reduce and enhance your month end activities.