Simplify the intercompany reconciliation process

The intercompany process sits on the critical path for the consolidation cycle and may cause delays while operating units resolve unmatched intercompany transactions. Time spent at both the head office and local operations contributes to a significant number of staff days that are needlessly wasted on this essential but cumbersome process. According to Gary Simon in Fast Close to the Max, “the greater problem with inter-company processing is that the material differences often only  come to light after all the individual group reporting packs have been submitted […]. Typically this is quite late in the Fast Close process. The key to minimising delays around the agreement of inter-company differences is to start the procedure much earlier in the reporting cycle and to deploy technology that fully supports the process.”

With SAP BusinessObjects Financial Consolidation 10.1 SP03 we are delivering two new and non-disruptive additional features to streamline the intercompany reconciliation process: the Live package reconciliation and the Live package currency conversion.


Live package reconciliation

Today in SAP BusinessObjects Financial Consolidation the intercompany reconciliation is performed through a 5-step process:
1. Affiliates / local operations enter intercompany data in their packages
2. Affiliates / local operations integrate their packages
3. HQ / corporate consolidate data
4. HQ / corporate run reconciliation reports
5. HQ / corporate transmit the information to the affiliates so that they reconcile data

In release 10.1 SP03, with the new Live package reconciliation feature affiliates can now perform live intercompany reconciliation locally in the data entry package, resulting in the of the acceleration of the reconciliation process.

When using the Live package reconciliation, no need to integrate the package, no need for the HQ to consolidate data, run intercompany reports and transmit the information back to the affiliates: the process is reduced from 5 to 1 step.

The above screenshot shows an example of a package schedule using the Live package reconciliation feature. The following information can now be displayed directly in the package:
• My intercompany amounts against partners in my local currency
• My partners intercompany amounts against me in their local currency (refreshed live)
• Information about the partner local currency
• My partners’ intercompany amounts converted on the fly in my local currency
• Calculation of the difference in intercompany declaration (auto-refreshed)
• My partners comments (refreshed live)
• My partners last change date (refreshed live)
• Information about the partners author (refreshed live)


Live package currency conversion

Also available in release 10.1 SP03, the new Live package currency conversion feature results in the ability for affiliates to convert local data on-the-fly in their package, with no need to integrate the package nor to run any consolidation. Below is an example of a reporting unit package which local currency is Euro. Using a simple package document, the reporting unit can choose to convert Euro data in any other currency defined in the rates table. The conversion is done on the fly directly in the package


More information

For more information you can refer to our SAP BusinessObjects Financial Consolidation 10.1 SP03 User Guide on sections 5.7 “The Live Data Source” and 7.2.6.11 “Live Package Reconciliation”.

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