Intercompany balances matched and ready to eliminate
When two entities book the same intercompany transaction differently, or in different periods, the gap tends to surface late, often in the middle of consolidation. While the close runs, the Accounting Agent matches balances across every entity pair and prepares the eliminations, so mismatches get resolved before they hold up the consolidated numbers.
What the Accounting Agent prepares
- Matched intercompany balances by entity pair, in transaction and reporting currency
- Mismatches flagged with both sides of the transaction and the likely cause (timing, amount, FX, or coding)
- Drafted elimination entries for matched balances
- Drafted correcting entries where one side is missing or wrong
- An intercompany reconciliation working paper for each period
How it works
- Pull the data. The Accounting Agent pulls intercompany receivables, payables, revenue, and expense from each entity in your ERP.
- Prepare the work in your logic and format. It matches both sides using your intercompany accounts and rules, flags differences, and drafts the eliminations.
- Review and approve. You resolve the flagged items and approve the entries. Eliminations and corrections post to your ERP once approved, never before.
What stays in your control
- You decide how each mismatch is resolved and which side gets corrected
- Elimination and correcting entries post only after approval
- Every matched pair links back to the transactions in both entities
Standard note
Under ASC 810 and IFRS 10, intercompany balances and transactions between members of a consolidated group are eliminated in full in the consolidated financial statements.
FAQ
What is intercompany reconciliation?
It confirms that receivables, payables, revenue, and expenses between related entities agree on both sides before they are eliminated in consolidation. Doing it before consolidation keeps late mismatches from holding up the group numbers.
Why don't intercompany balances match?
Common causes are timing differences, one side not booking the transaction, FX rates applied differently, and coding to the wrong account or entity. The Accounting Agent tags each mismatch with its likely cause.
What are intercompany eliminations?
They are entries that remove balances and transactions between entities in the same group, so the consolidated statements show only activity with outside parties.
