Intercompany Reconciliation: Eliminating the Month-End Nightmare

Why Intercompany Balances Get Out of Sync

When Company A records a sale to Company B, and Company B records the corresponding purchase, both must be for the same amount in the same currency at the same date. Timing differences, rate differences, and errors create mismatches.

Automatic Journal Mirroring

In ERP, when Company A posts an intercompany invoice, ERP automatically creates the corresponding entry in Company B's books — same amount, same date, same description. The reconciliation is built in from day one.

Currency Translation for International Intercompany

When entities are in different currencies, ERP handles translation consistently — both entities use the same rate, eliminating FX translation differences.

Intercompany Elimination at Consolidation

When preparing group consolidated accounts, intercompany revenues, costs, and balances must be eliminated. ERP generates these elimination entries automatically from the intercompany transaction log.