Use stable entity names, account pairs, currency rules, and cutoff dates. Record which person owns each entity ledger.
Build an intercompany reconciliation handoff
Coordinate balances, counterparties, currencies, timing differences, and approvals across entities without losing the evidence trail.
Published · 8 minute read
The short answer
- Use one counterparty naming rule.
- Match both sides of each balance.
- Escalate unresolved differences before consolidation.
Set the counterparty map
Match both ledgers
Compare invoices, settlements, journals, and confirmations. The IRS recordkeeping guidance supports retaining records that substantiate business transactions.
Classify differences
Label timing, currency, missing entry, wrong account, duplicate, and unresolved dispute. Do not net a difference away without a documented decision.
Use the consolidation packet
Pair the multi-entity handoff with the management reporting packet. Require both entity owners to review material differences before consolidation.
Improve the cadence
Run the process before close, review aged differences, and change the source checklist when the same mismatch repeats.
Questions owners ask
Who resolves an intercompany difference?
The bookkeeper identifies and documents it. Entity owners or the controller decide the correction.
What should be matched?
Match entity, counterparty, period, currency, account, amount, and source reference on both sides.