The Group Financial Control module includes two powerful Apps to help Users manage and control intercompany relationships and transactions.
Intercompany Reconciliation App
Core Functionality
This App enables Users to perform reconciliations by matching intercompany transactions from one company with their counterparty transactions in another company.
The App can be used to perform:
Balance sheet reconciliations up to a specified date
Profit and Loss Account Reconciliations for a specified period
The App can be used to match:
Invoices and bills - split by customer and vendor
Journal entries
The App can be used to post correcting entries to the underlying Xero or QuickBooks General Ledger, in the event that the need is identified.
Interrelationship with Group Financial Reporting Module
Intercompany accounts should net to zero on consolidation.
There are two circumstances in which Intercompany accounts will not net to zero:
Errors or omissions in the underlying Xero/QuickBooks General Ledger
Foreign Exchange Differences arising on consolidation
The Intercompany Reconciliation App can be used to help identify and correct errors and omissions. Once the User is confident that the underlying General Ledger is correct, the User can make the appropriate accounting adjustments to reflect the Foreign Exchange Differences arising on consolidation in the Working Papers environment in the Group Financial Reporting module.
Intercompany Recharge App
Core Functionality
This App allows you to manage all your Intercompany relationships and transactions centrally.
The App allows you to:
A)
Post Journals (including recurring Journals) between two companies
Post invoices and bills (including on a recurring basis) between two companies
B)
Post journals in one company then recharge some or all of the journal amounts split between one or more entities (and recording those recharges as invoices/bills - or journals)
C)
The same as B) above - except with the option to add mark-ups (to reflect transfer pricing arrangements, for example)
D)
The same as B) and C) above - except picking up financial data in Xero/QB ledger codes to identify the underlying recharge amounts
Interrelationship with Group Financial Reporting Module and Intercompany Reconciliation App
Accurate Group Financial Reporting requires that intercompany balances and transactions are eliminated on consolidation. By managing these centrally, thus ensuring that counterparty transactions match, the risk of imbalances is reduced.
The Intercompany Reconciliation App can be used to investigate and validate that Intercompany accounts are in balance - and to post corrections where needed.