Intercompany Reconciliations

IC reconciliation is when two branches of a parent company reconcile figures as a result of engaging in a transaction. One child company is the seller to the other child company is the purchaser. Thus, in order to ensure that the correct figures appear on financial statements, the figures need to be reconciled. Ideally this occurs at the transactional level. The process often takes place monthly or quarterly and involves various general ledgers of child companies eliminating intercompany transactions.

Software can help companies flag intercompany transactions. CCH Tagetik's IC Cockpit can help you and will provide you with a simple dashboard displaying the intercompany relationships and their impact on your consolidated financials. 

Intercompany reconciliations are essential for producing accurate consolidated financial statements.

Without effective reconciliations, organizations may experience:

• Unmatched intercompany balances
• Delays in the financial close
• Incorrect elimination entries
• Consolidation errors
• Audit and compliance risks
• Reduced confidence in reported results

Reconciling transactions before consolidation helps organizations identify and resolve discrepancies early, improving both reporting accuracy and close efficiency.

The CCH Tagetik platform helps finance teams identify mismatches quickly, reducing manual investigation and accelerating close cycles.

Many organizations struggle with:

• High transaction volumes
• Multiple ERP systems
• Currency conversion differences
• Manual spreadsheet processes
• Lack of visibility into discrepancies
• Delays in communication between entities
• Complex organizational structures

These challenges can lengthen close cycles and increase the risk of consolidation errors.

With centralized workflows, matching logic, and reconciliation controls, CCH Tagetik helps organizations simplify intercompany accounting while improving governance and reporting accuracy.

CCH Tagetik Financial Close & Consolidation includes integrated capabilities for managing intercompany reconciliations across the close process.

Key capabilities include:

• Intercompany Matching
• Invoice-Level Reconciliation
• Reconciliation Dashboards
• Centralized Intercompany Cockpit
• Exception Management
• Automated Elimination Support
• Audit Trails and Documentation
• Consolidation Integration

Rather than managing reconciliations manually across multiple systems, organizations use CCH Tagetik to automate intercompany accounting processes, improve collaboration, and accelerate financial close and consolidation activities.