Definition · intercompany
Intercompany reconciliation
Intercompany reconciliation is the practice of matching intercompany balances recorded by each entity to identify and resolve mismatches before consolidation. For intercompany reconciliation, the important details are the accounting period, source evidence, reviewer, materiality threshold, and control purpose that make the treatment auditable during close, reporting, and later review.
Also known as IC reconciliation, intercompany matching
Why it matters
Understanding intercompany reconciliation matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo reconciles intercompany balances across entities automatically, flagging where one side recorded a transaction the other did not, with the unmatched detail one click from the headline.
In practice
Close example
Teams use intercompany reconciliation during close, review, or audit support when a balance or transaction needs evidence. The controller should be able to trace the number to source records, timing, reviewer, and control threshold.
Pluvo example
Pluvo reconciles intercompany balances across entities automatically, flagging where one side recorded a transaction the other did not, with the unmatched detail one click from the headline.
In practice, teams should define intercompany reconciliation with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding intercompany reconciliation matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo reconciles intercompany balances across entities automatically, flagging where one side recorded a transaction the other did not, with the unmatched detail one click from the headline.
A strong workflow for intercompany reconciliation separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo reconciles intercompany balances across entities automatically, flagging where one side recorded a transaction the other did not, with the unmatched detail one click from the headline.
FAQ
What is intercompany reconciliation?
Intercompany reconciliation is the practice of matching intercompany balances recorded by each entity to identify and resolve mismatches before consolidation. For intercompany reconciliation, the important details are the accounting period, source evidence, reviewer, materiality threshold, and control purpose that make the treatment auditable during close, reporting, and later review.
How do you reconcile intercompany balances?
To use intercompany reconciliation, start with the decision, then confirm the source data, timing, calculation logic, and owner. The analysis is strongest when a reviewer can trace the answer back to the records that produced it.