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Intercompany Reconciliation

Updated: August 20, 2025

Updated over a month ago

The Intercompany Reconciliation tool in GATHER.nexus ensures all intercompany accounts are matched and balanced across entities, even in multi-currency environments.


1. Setting Up Reconciliation

When starting a new reconciliation, click Perform from the Intercompany Reconciliation screen. You’ll complete a guided 5-step setup:

Step 1: Name the Reconciliation

  • Enter a clear, descriptive name (e.g., “Q1 2025 Group Reconciliation”, “January UK-AU Intercompany”).

  • Click Save & Next.

Step 2: Choose the Companies

  • From Group: Pick companies from a predefined group for consistency.

  • Direct Selection: Select companies manually across groups.

  • Define originators (From Companies) and recipients (To Companies).

  • Note: A company cannot be both From and To.

  • Click Save & Next.

Step 3: Choose the Accounts

  • For each company, select relevant intercompany accounts from the chart of accounts.

  • Add multiple accounts if needed.

  • (Optional) Enable Tracking Categories to filter reconciliation by project, department, or business unit.

  • Click Update & Next.

Step 4: Choose the Currency

  • Select the reconciliation reporting currency.

  • GATHER.nexus automatically converts amounts and highlights exchange rate differences.

  • Click Update & Next.

Step 5: Select the Reconcile Period

  • Choose start and end dates.

  • Options include monthly, quarterly, annual, or custom ranges.

  • Align with your group reporting calendar.

  • Click Update & Next.


2. Performing & Matching Transactions

After setup, you’ll enter the Reconciliation Analysis Screen.

Interface Layout

  • Left panel: From Companies (originators).

  • Right panel: To Companies (recipients).

  • Central area: Matching and balancing transactions.

Features

  • Status Tabs: Unreconciled | Reconciled | Excluded.

  • Filters: By company, account, date, or tracking category.

  • Currency View: Switch display currencies (for view only).

  • Highlighting:

    • Green = matched transactions.

    • Orange = discrepancies (option to adjust).

Transaction Matching

  • Select transactions on both sides to reconcile.

  • Exclude items not in scope (can re-include later).

  • Use search and filters for large datasets.

Exchange Rate Options

  • Transaction Date Rate

  • Month-End Rate

  • Monthly Average Rate

  • Specific Date Rate


3. Creating & Posting Adjustments

If discrepancies exist, you can create adjustments directly within the tool.

Creating Transactions

  • Add Invoice: Generate intercompany invoices and post to Xero.

  • Add Journal Entry: Create manual adjustments with balanced debits and credits.

Posting Transactions

  • Draft: Save for review before final posting.

  • Posted: Finalise directly in Xero.

  • Repost: Correct or update transactions later while maintaining an audit trail.

Completion & Finalisation

  • Save & Reconcile Later: Pause and return later.

  • Finish Now: Close the reconciliation immediately.

  • System maintains progress tracking, history, and audit logs.


Need help? Visit gather.nexus, click the chat icon in the bottom-right corner, or email us at [email protected] for assistance.

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