Intercompany Accounting and Reconciliation

Keep this: job aid

Intercompany month-end checklist

• Intercompany = two company codes. Plant-to-plant inside one company code is not intercompany.
• Cross-company entries: one document per company code, linked number, reverse together.
• Trading partner on every intercompany line; check customer and supplier masters for group entities.
• Automate the buyer's supplier invoice from the seller's intercompany billing where possible.
• Run matching after billing and invoicing; strict rules first, suggested matches confirmed by a person.
• Classify each unmatched item: timing, missing, amount, currency, classification, dispute.
• One owner per difference; aged items escalated to the process owner.
• Tolerances absorb noise only; review them after each close.
• Test both sides of every scenario, with deliberate mismatches; both entities sign.