Definition · intercompany
Intercompany transactions
Intercompany transactions is transactions of goods, services, loans, or interest between entities under common control, and how they are tracked for consolidation. For intercompany transactions, the important details are the period, source evidence, reviewer, threshold, and control purpose that make the treatment auditable.
Also known as intercompany activity, IC transactions
Why it matters
Understanding intercompany transactions matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo matches intercompany activity across entities by linking the same transaction on both sides, surfacing mismatches before they distort the consolidation.
In practice
Close example
Teams use intercompany transactions 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 matches intercompany activity across entities by linking the same transaction on both sides, surfacing mismatches before they distort the consolidation.
In practice, teams should define intercompany transactions with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding intercompany transactions matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo matches intercompany activity across entities by linking the same transaction on both sides, surfacing mismatches before they distort the consolidation.
A strong workflow for intercompany transactions 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 matches intercompany activity across entities by linking the same transaction on both sides, surfacing mismatches before they distort the consolidation.
FAQ
What are intercompany transactions?
Intercompany transactions is transactions of goods, services, loans, or interest between entities under common control, and how they are tracked for consolidation. For intercompany transactions, the important details are the period, source evidence, reviewer, threshold, and control purpose that make the treatment auditable.
How are intercompany transactions recorded?
Understanding intercompany transactions matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo matches intercompany activity across entities by linking the same transaction on both sides, surfacing mismatches before they distort the consolidation.