The Group Financial Control module provides two Apps to help manage intercompany balances and transactions:
Intercompany Reconciliation App
Intercompany Recharge App
Both are designed to keep intercompany activity aligned, reduce errors, and ensure accurate group-level reporting.
1. Intercompany Reconciliation App
Core Functionality
This app enables you to match intercompany transactions across entities and reconcile balances. You can:
Run Balance Sheet reconciliations up to a specified date.
Run Profit and Loss reconciliations for a chosen period.
Match transactions including:
Invoices ↔ Bills (customer/vendor pairs).
Journal entries.
Post correcting entries back into Xero/QuickBooks when mismatches are identified.
Importance:
On consolidation, intercompany accounts should net to zero. When they don’t, the cause is usually:
Errors or omissions in the underlying ledgers.
FX differences created during consolidation.
The app helps you:
Identify and correct ledger errors/omissions at source.
Handle FX-related differences through adjustments in Working Papers within the Group Financial Reporting module.
2. Intercompany Recharge App
Core Functionality
This app centralises the creation and allocation of intercompany charges. It supports:
Posting journals, invoices, and bills between two companies (one-time or recurring).
Recharging journals by splitting amounts across multiple entities, recording them as invoices/bills or journals.
Applying mark-ups for transfer pricing or cost-plus arrangements.
Sourcing recharge data directly from Xero/QuickBooks ledger codes.
Importance:
By managing intercompany activity centrally, you:
Ensure counterparties record matching transactions.
Reduce the risk of discrepancies on consolidation.
Support clean eliminations in group reporting.
The Recharge App works alongside the Intercompany Reconciliation App:
Recharge → ensures consistent postings.
Reconciliation → validates balances and corrects issues if mismatches remain.
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