Intercompany Reconciliations [v26.3] 

Intercompany reconciliation is a reconciliation type that enables finance teams to reconcile GL accounts between two legal entities within Account Reconciliation. It is suited for accounts such as intercompany receivables, payables, loans, cost recharges, and equity transfers, where corresponding entries exist in two separate legal entities and must be confirmed to agree at period end.

In an intercompany reconciliation, the left side displays GL transactions from the primary legal entity and the right side displays GL transactions from the counterparty legal entity. Both sides are sourced from the ERP — no bank statement upload is required. The system matches transactions across both sides. Because intercompany entries are opposite-sign postings, a debit on one side corresponds to a credit of the same amount on the other.

Intercompany reconciliations display an intercompany icon in the Support Source column of the reconciliation list.

Note: Intercompany reconciliation supports 1:1, M:1, 1:M, and M:M template mapping. Grouping can be enabled only between accounts that share the same currency on the same side. The left and right sides can use different currencies.

Note: For information on setting up an intercompany reconciliation template, see Managing Reconciliation Templates.

Note: For information on reconciliation workflow stages, restricted actions at each stage, early start eligibility for next-period reconciliations, and auto-start behavior, see Reconciliation Workflow Restrictions in Reconciliation Overview.

Intercompany Reconciliation Details Page

The Intercompany Reconciliation Details page contains the following sections:

• Header Bar — Displays the reconciliation name, period, status badge, and page-level action icons.

• Summary Cards — Displays the Accounts card and summary cards showing balances and match totals.

• Transaction Matching — Performs transaction matching between GL account entries and counterparty GL account entries. Contains Unmatched and Matched tabs.

Header Bar

The header bar displays the reconciliation identifier and provides page-level action icons:

Note: The Upload button on intercompany reconciliations stores generic attachments only. Files are not parsed for transaction data. Both sides are sourced automatically from the ERP integration.

Summary Cards

The summary cards below the header display the accounts and key balances for the reconciliation:

Note: For intercompany reconciliations, both the GL Balance and the Counterparty GL Balance are sourced from the ERP and cannot be set manually.

Cross-Currency Support

Transaction lines on both sides can be recorded in any transaction currency, regardless of the account's functional currency. All KPI card amounts — GL Balance, Counterparty GL Balance, Matched, and Unmatched — are displayed in the GL Account's functional currency, with exchange rates applied for conversion. A Currency field is available when adding or importing opening carryover lines.

Transaction Matching

The Transaction Matching section performs transaction matching between GL account entries and counterparty GL account entries. It contains two tabs: Unmatched and Matched.

To perform transaction matching for an intercompany reconciliation:

1. Manage Transactions in the Unmatched tab.

2. Manage Transactions in the Matched tab.

3. Submit the Reconciliation for Review.

Reconciliation Workflow and Auto-Start

The intercompany reconciliation follows the same workflow as other reconciliation types: Not Started → In Progress → In Review → Pending Approval → Approved.

Auto-start behavior:

• First period — the reconciliation moves to In Progress automatically when a balance exists on either side, even if no lines have been manually added. Preparers can also start the reconciliation manually by adding or importing an opening carryover line, or by manually matching a transaction pair.

• Subsequent periods — Once a preparer submits a reconciliation for review, the next period's reconciliation moves to In Progress automatically if a balance exists on either side.

Manage Transactions in Unmatched Tab

The Unmatched tab displays unmatched GL account entries and counterparty GL account entries in side-by-side tables: GL Account on the left and Counterparty GL Account on the right.

The Unmatched tab provides the following controls:

The Unmatched tab shows the following columns on each side:

Note: When there are no unmatched items, both panes display "No unmatched transactions — This account has no unmatched transactions left." When items are present, each side displays a line count and total amount at the bottom.

Opening Carryover Lines

When a GL account first appears in a reconciliation, preparers can load prior-period unmatched items as opening carryover lines on both sides. Add Opening Carryover Line (+) and Import Opening Carryover Lines (↑) are available on both sides when the account first appears in a reconciliation, during the Not Started and In Progress states.

Add Opening Carryover Lines

To add a single opening carryover line manually on either side:

1. Click Add Opening Carryover Line (+) on the respective side.

2. In the Add Line dialog, enter the required fields and any optional information:

   Field	Description
   Date	The date of the originating transaction.
   Amount	The amount of the carryover item.
   Currency	The transaction currency of the item.
   Description	A description of the item.
   Ref #	Optional. Reference number for the item.
   Category	Optional. The risk category for this item.
   Comment	Optional. Additional context.

3. Click Add Line.

   The item appears immediately on the respective side. The system automatically triggers the matching engine to evaluate the new item.

Import Opening Carryover Lines

To import multiple opening carryover lines via CSV on either side:

1. Click Import Opening Carryover Lines (↑) on the respective side.

2. Click Download Template.

3. Populate the CSV template. Required fields: Date, Amount, Currency, Description. Optional fields: Ref #, Category, Comment.

4. Click Upload and select the completed CSV file.

   Successfully uploaded items appear on the respective side of the Unmatched tab.

If any row fails validation, the entire file is rejected and an error message displays.

Match Transactions Manually

Intercompany matching is 1:1 only — one GL line matched to one counterparty GL line. A match is valid when one line is selected from each side, the amounts are equal in absolute value and opposite in sign, and both lines share the same transaction currency.

Note: Lines in different transaction currencies cannot be matched. The Match button remains disabled if the selected lines are in different currencies or do not net to zero.

To match transactions:

1. In the Unmatched tab, select one line from the GL Account pane and one line from the Counterparty GL Account pane.

2. Verify that the selection summary shows a net total of zero and both lines share the same transaction currency.

3. Click Match.

   The matched pair moves to the Matched tab and the summary cards update automatically.

Unmatched balance calculation

Unlike bank account reconciliation — where the unmatched amount is the difference between the two sides — the intercompany unmatched amount is calculated as the sum of both sides. Because intercompany lines always carry opposite signs, matched pairs cancel each other out, and only the remaining unmatched lines contribute to the unmatched balance.

Comment and Categorize Unmatched Transactions

For intercompany transactions that cannot be matched in the current period, preparers can document them using the Add Comment dialog. The dialog also allows assignment of a Category that classifies the nature of the unmatched transaction and contributes to risk scoring on the Unmatched Risk Dashboard. Documented items carry forward to future periods.

Note: Categories must be configured in Settings → Categories before they are available for assignment. See Categories.

To add a comment and category to a single item:

1. Select the unmatched transaction from either the GL Account side or Counterparty GL Account side.

2. Click the Comment icon on the item row. The Add Comment dialog opens.

3. Enter a comment and select a category.

4. Click Save.

To add a bulk comment and category to multiple items:

1. Select the checkbox for each unmatched line item to update.

2. Click Update [N] Rows. The bulk update dialog opens.

3. Enter a comment, select a category, or both.

4. Click Update.

Manage Transactions in Matched Tab

The Matched tab displays all successfully matched transaction pairs. The section header displays Match Results with a consolidated view of GL Account and Counterparty GL Account matches.

To review and manage matched transactions:

1. Go to the Matched tab.

2. Use the following controls to search or filter matched transactions:

   Control	Description
   Search	Searches matched transactions by description or amount.
   Filter by Confidence Level	Filters matched transactions by AI confidence level.
   Sort by Confidence Level	Sorts matched transactions by confidence level. Select Lowest to identify matches that may need manual verification.
   Clear Search & Filters	Removes all applied search and filter criteria.
   Bulk Unmatch	Unmatches multiple transactions at once: Unmatch All, Unmatch AI, or Unmatch Manual.

3. To unmatch an individual match, click the Unmatch icon on the right side of the line item. Both transactions move to the Unmatched tab.

Note: Unmatch actions are available only during the Preparation stage (In Progress status). Once submitted for review, transactions are locked.

Submit Reconciliation for Review

Once all transactions are addressed:

1. Verify reconciliation completeness:

   • All possible matches have been made.

   • Remaining variances have been documented.

   • Summary cards show acceptable balances.

2. Click Submit for Review. The Submit Reconciliation for Review dialog opens.

3. Optionally, add comments about the reconciliation.

4. Click Submit.

   The reconciliation moves to the Review stage and the status indicator updates.

Out-of-Balance Warning

Submit for Review is enabled only when the difference between the GL Balance and the Counterparty GL Balance is within the configured tolerance. The configured tolerance is the tolerance override set on the reconciliation template or, when the template uses the system default, the default tolerance set in Settings > Configuration.

If the reconciliation is out of balance beyond the tolerance, the Submit for Review button is disabled and a red warning icon is displayed next to it. Hover over the icon to view a tooltip explaining the imbalance.

Export Reconciliation Statement

The export action opens the Export Reconciliation Statement dialog, where you can choose the export format and configure how the statement is rendered before exporting.

To export the reconciliation statement:

1. Click the Export icon in the header bar or the row action on the Reconciliation List page.

   The Export Reconciliation Statement dialog opens.

2. Configure the following options:

   Option	Description
   Sections	Selects which lines to export: Full Statement, Unmatched Only, or Matched Only.
   Format	Selects the export format: Excel (.xlsx), PDF (.pdf), or CSV (.csv).
   Detail Level	Selects the level of detail: Summary Only or Summary + Detail. Applies to all formats.
   Include Statement First-Page Image	When enabled, includes the first page image of the bank statement in the export. Applies to Excel and PDF only.
   Description Max Length	The maximum number of characters allowed for line descriptions. The default value is 100.

3. Click Export.

   The statement downloads to your default downloads folder.

The exported statement labels the right side as Counterparty (GL Account), includes the Counterparty GL Balance, and separates matched and unmatched lines consistent with the on-screen layout.

Note: For PDF exports, if the reconciliation includes attachments, all attachment pages are appended to the PDF in full after the statement. Attachments are not included in CSV exports.

Carry-over Lines

Carry-over behavior follows the accounts participating in a reconciliation rather than the reconciliation template itself. Unmatched transaction lines carry forward automatically at the end of each period on both the GL Account side and the Counterparty GL Account side.

• Carried-forward lines are read-only in future periods and cannot be edited or deleted, but comments can be added.

• Lines continue to carry forward, period over period, until matched or until the underlying ERP entry is corrected.

• When accounts are moved between templates or removed from a reconciliation, existing carry-over lines are not transferred automatically. Opening carry-over lines can be uploaded manually to continue tracking those items.

Reopen Reconciliation

If a GL balance is restated in a past period, the affected reconciliation is reopened and moved back to Preparation. The reopen logic follows the GL account, not the template.

• All historical reconciliations that contained the restated account are reopened, across template boundaries, following that account through whichever template it belonged to in each period.

• The walk-back stops when the account's contribution to the balance stops changing.

• A template that no longer contains the restated account is not reopened.