In this phase, the intercompany bookings between the individual clients are reconciled.

Reconciliation is performed per client and intercompany partner. On the one hand, the total of the receivables and payables accounts is reconciled. On the other hand, the total of the revenue accounts is reconciled against the expense, inventory, fixed asset, and accruals accounts.

If the data is only delivered in local currency, it is converted into the group currency before IC reconciliation. The conversion is not yet performed according to the consolidation rules. At this point, the conversion is performed at the original transaction rate, if possible. This approach largely avoids exchange rate differences when reconciling documents.

To quickly determine the cause of any discrepancies, the differences are reconciled for each intercompany document. Intercompany documents without differences are automatically reconciled. The remaining documents with differences can be reviewed in the IC Posting Reconciliation report.

In the overview, the first value column Amount... displays the sum of the difference amounts per intercompany connection (= intercompany - client combination) and month.

The second value column displays the number of intercompany documents with differences.

The third value column shows the number of intercompany documents whose differences are still unresolved.

In the detailed view of the receivables and payables accounts, the first column displays the total amount per subaccount. The second column displays "only" the amounts of the difference documents.

The elimination group displays the account category from a consolidation perspective. The setting in the group accounts.

The "Connection Eliminable" column indicates whether the account is a group account that can be eliminated. (Tax accounts, bank accounts, etc. cannot be eliminated.) In exceptional cases, the setting for the group account can be overwritten in the "Overwrite Eliminability" column. Accordingly, during subsequent data consolidation, only those postings that are actually eligible for elimination according to the settings in both columns will be eliminated.

In the Reconciliation Method column, you can specify the reason for the difference between the two local clients. Based on this reason, automatic measures can be taken during subsequent consolidation to ensure the correct handling of the differences. The following reconciliation methods are available by default (may vary per customer installation):