Best "Data" Practice: Automating Intercompany

With the new Intercompany Module, it is easy to eliminate not only on account level but also on counterparty at the correct consolidation levels.

In this article, we will describe the four data scenarios and give you recommendations on how to handle your intercompany amounts in Konsolidator and in general.

For a successful intercompany elimination that is as automated as possible, data/Information is, of course, needed. More specifically, you need to know your intercompany amounts and who you have it against.

1. Both counterparty and dedicated IC accounts (recommendation)

Scenario: You have both counterparty and dedicated accounts for your intercompany amounts available.

We recommend that you always aim to automate the process of extracting the information and getting it into Konsolidator® as much as possible. For best practice, aim to have both counterparty and dedicated accounts so your intercompany process is easy and automated.

With both counterparty and dedicated IC accounts, the new module in Konsolidator will easily eliminate at the correct levels and provide an in-app overview of the reconciliation at all levels.

If you already have the data in Konsolidator, you can start today.

Is the above not possible? then it will still add value to your elimination of IC having one of the two pieces of information available.

2. Only counterparty information

Scenario: You have the counterparty information, but it is spread across your regular accounts.

Only having the counterparty information available on your group accounts in Konsolidator will still add value. It will allow you to semi-automate the elimination across your group accounts. You could even reclass to achieve the first/best practice scenario.

3. Only dedicated IC accounts

Scenario: You have dedicated IC accounts but no counterparty information.

If your intercompany amounts are isolated on dedicated accounts, the system will try to eliminate them, as it has “always done.” Meaning that Konsolidator will attempt to eliminate intercompany at the lowest level first, as no counterparty information is available.

Remember that even if you don’t have the counterparty information available when you initially upload to Konsolidator, there are other ways to get the information, either through semi-automated reclass or changing the way you upload.

4. No intercompany information isolated

Scenario: You do not have the counterparty information or dedicated accounts for your intercompany amounts.

With no intercompany information available, you will, of course, have to reconcile your intercompany outside of Konsolidator and manually do your eliminations based on that reconciliation.

While even the manual eliminations can be semi-automated, we always recommend uploading as much of the above information in Konsolidator as possible.