Intercompany Reconciliation

You can use Intercompany reconciliation reports to assist you with reconciling your intercompany receivables and intercompany payables accounts and identifying differences.

The goal of the reports is to identify either the receiver side or provider side of a transaction that are posted to the intercompany receivables or intercompany payables account.

The reports show these intercompany lines:

• Intercompany receivables and intercompany payables lines generated by the intercompany balancing feature.

• Intercompany receivables and intercompany payables lines generated for the provider and receiver of each intercompany transaction.

These aren't included on the intercompany reconciliation reports:

• Ledger balancing lines generated when the primary balancing segment value is in balance but either the second balancing segment or the third balancing segment is out of balance

• Clearing company balancing lines

Reconciliation Reports

The reconciliation reports show the entered or the transaction amount of the accounting entries booked to the intercompany receivables and payables accounts for a pair of provider and receiver legal entities. The accounted amounts may be different when the conversion rates used for the intercompany receivables and intercompany payables are different. You can select to run the reports using an additional currency and conversion rate that converts all amounts into a common currency for comparison.

The intercompany reconciliation process starts with running the Prepare Intercompany Reconciliation Reporting Information process. Select parameters to determine what data appears on your reports. For example, select the provider legal entity and receiver legal entity.

Once the Prepare Intercompany Reconciliation Reporting Information process has completed successfully. Click the Refresh icon to view the Reconciliation Period Summary report. This report displays the intercompany receivables and intercompany payables balances in summary for a period, and any differences between them. Drill down on the links to view the balances by source and then by journal lines. You have full drill-down capabilities to the general ledger journal, subledger accounting entry, and source receivables or payables transaction.

Generate the Reconciliation Report

To generate the Reconciliation Report, follow these steps:

1. Navigate to Intercompany > Reconciliation.

2. Click Actions > Run.

3. Select the report parameters.

4. Click Submit and note the process ID.

5. Click the Refresh icon until the report is displayed.

6. The Period Summary report is displayed.

7. Click one of the Entered Amount Difference in Transaction Currency value to view the Summary by Source report.

8. Review the Intercompany Receivables and Payables balances.

9. You can further drill down to any line by clicking the line. This displays the Journal Lines report.

10. Click the Journal Name to review the journal details.