Intercompany reconciliation
in the general ledger of S/4HANA
SAP Intercompany Matching & Reconciliation (ICMR) reduces reconciliation effort and significantly increases flexibility in execution.
The worldwide activity of many companies in a global economy makes intercompany reconciliation increasingly challenging. For example, if an invoice posted as Accounts Receivable (AR) at a subsidiary is not posted on time, is posted incorrectly, or is not posted at all as Accounts Payable (AP) at the internal trading partner, differences arise in the price of goods, the taxes charged, or the quantity. Those responsible in the finance department then have to intervene manually and correct the discrepancies - a sometimes
very time-consuming activity. With the ICMR module, SAP has integrated an intercompany reconciliation solution in the general ledger of S/4HANA that detects discrepancies in transaction flows, discloses details of the problem at hand, and adjusts defined differences, in some cases automatically. Regular monthly, quarterly or annual financial statements can be significantly simplified and accelerated with this solution.
Intercompany Matching & Reconciliation (ICMR)
ICMR is integrated into the S/4HANA core from SAP releases 1908 (Cloud)/ 1909 (On Premise) and can be used without additional licensing costs. As the name suggests, the solution contains two functions: Matching Engine and Reconciliation.
ICMR ensures full transparency in the financial statements by making differences visible not only on an aggregated level in real time, but also by allowing drill-through to the line item level. Authorized users are thus able to check in detail unallocated positions of the companies involved as well as the elements automatically allocated by defined matching rules.
ICMR bundles data belonging to the same business transaction under an assignment number. At this level, user-defined rules can be added to automatically resolve discrepancies in a transparent, traceable manner, forming the basis for subsequent elimination.
Due to the deep integration of ICMR into the consolidation process and through flexible matching and elimination rules, a high level of automation and continuous accounting can be achieved in the company.
Features at a glance
BENEFITS FOR BUSINESS
The out-of-the-box solution Intercompany Matching & Reconciliation (ICMR) not only reduces the reconciliation effort, but also significantly increases flexibility in execution:
- Advanced ICMR-based accounting settings eliminate the manual posting effort of correcting and writing off small differences
- Manage Reconciliation Close Process manages consolidated financial statement status and displays the cause of elimination differences
- ICMR-triggered reconciliation breaks down differences into categories as well as by reason for difference
- Compatibility with non-SAP or legacy systems by importing data via Excel spreadsheets or APIs
- Drill down to the line item level for full transparency
- Real-time reconciliation possible at aggregate level as well as transaction level
- User-defined rules automatically resolve discrepancies in a controllable and traceable manner
- In-app communication and integrated workflow capabilities accelerate the resolution of cross-enterprise discrepancies
![[Translate to English:] Carolin Fuss](/fileadmin/_processed_/d/7/csm_Fuss__Carolin_caeb13b174.jpg "[Translate to English:] Carolin Fuss")
Very important for the success of any S/4HANA transformation is that the FICO team - both the business and the IT side - is part of the project from the very beginning.
Our services
With the help of their many years of experience, CONSILIO's specialists determine the potential of the company's systems in the finance and controlling environment and provide support in process automation.
- Analysis and identification of frequent sources of errors in IC transactions
- Complete specification of the ICMR monitor
- Definition of individual matching rules that are perfectly tailored to the problems in the company
- Improvement and automation of IC processes
Our Clients
![[Translate to English:] BMW](/fileadmin/startseite/logos/logo-bmw-2020.svg){kind=logo}
Why choose CONSILIO?
Many years of operational experience, extensive strategic know-how from national and international projects and a holistic approach guarantee optimal results at all times:
- The certificate Recognized Expertise for SAP S/4HANA confirms the extensive expertise and project experience.
- Solid conceptual approach to the introduction and implementation of Intercompany Matching with regard to identification, analysis and structuring of relevant processes.
- Holistic approach combines proven SAP software with effective S/4HANA best practice methods
