How SAP Intercompany Reconciliation (SAP ICR) helps you improve your own intercompany accounting process The usage of credit or debit memoВґs, a write-off of the difference or a force match are possible solutions for this problem. This gives rise to huge differences, which cause problems in the netting process and on the consolidated accounts. the price of the goods, the calculated taxes, the quantity, etc. Possible causes for a mismatch can be e.g. The biggest problem today is that an invoice booked on the Accounts Receivable (AR) at one subsidiary is often not booked on time, correctly, or at all in the Accounts Payable (AP) of the internal trading partner. Why you need a streamlined intercompany reconciliation process for your own business In this blog post, I explain how SAP Intercompany Reconciliation helps you to ensure that cross-company documents correspond to one another. This allows a better overview and bottle neck identification in the financial closing process. The accountants at corporate level: within SAP ECC or SAP S/4HANA, SAP Intercompany Reconciliation provides them with a central overview and check of the reconciliation results of all involved companies.This will avoid delays and disputes when payments are supposed to be processed. The accountants in the subsidiary: because they need to ensure that their own documents from accounting transactions correspond to the documents of internal trading partners, they benefit from having a tool that allows easier matching of documents.The two main groups who would benefit from using SAP Intercompany Reconciliation (SAP ICR) solution are: Today, the reconciliation of intercompany receivables and payables is one of the most time-consuming and challenging activities within the financial closing process.

Organizations with international subsidiaries, that process payables and receivables, benefit from SAPвЂ™s Intercompany Reconciliation solution (SAP ICR). ERP systems, such as SAP ECC or SAP S/4HANA, play an important role in managing and streamlining intercompany processes within those organizations. The fast increase in the number of entities and subsidiaries of organizations that operate on a global scale makes it more challenging for them to efficiently reconcile their intercompany balances. With mergers and acquisitions in the globalization of the world economy, intercompany accounting has become more and more important.

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