Overview
This guide explains the core operational workflows used within Intercompany Reconciliation, specifically focusing on:
Auto Match (system-generated suggestions)
Transaction Matching (user confirmation)
Discrepancy Management
Skip Adjustment and Reconcile
Ignore Discrepancy
Adjustment and Correction Workflows
These features are performed within the Reconciliation Analysis Screen after reconciliation setup has been completed.
Intercompany transactions are initially generated through the Intercompany Recharge process and are subsequently brought into the reconciliation workflow for validation and matching.
The reconciliation module provides visibility and operational control to ensure intercompany balances are aligned before group consolidation and reporting.
AUTO MATCH (System Suggestions)
Auto Match is the system’s ability to identify potential matching intercompany transactions between entities using available transaction data and matching logic.
Auto Match is most effective when:
Transactions exist in both FROM and TO entities
Amounts are expected to align or closely align
Transaction references or dates indicate related activity
Users want to accelerate the reconciliation process
How It Works
Within the Reconciliation Analysis Screen:
Apply filters if required (entity, account, period, tracking category)
The system analyses transactions using matching logic such as amount, entity relationship, and transaction timing
Suggested matches are presented for user review
Auto Match does not automatically finalise reconciliation.
The feature provides recommendations only, and all suggested matches require user review and confirmation before reconciliation occurs.
MATCHING TRANSACTIONS (User Confirmation)
Matching is the process where users confirm that transactions from different entities represent the same intercompany activity.
Transactions can be matched by:
Accepting an Auto Match suggestion
Manually selecting related FROM and TO transactions
Confirming the selected transactions for reconciliation
Result of Matching
Once transactions are matched:
The transactions become linked within the reconciliation workflow
Reconciliation statuses are updated
The activity becomes part of the reconciliation audit history
Users gain visibility into matched and unmatched balances
Discrepancies may still remain even after transactions have been matched.
HANDLING DISCREPANCIES
Discrepancies occur when intercompany balances or transactions do not fully align between counterparties.
Differences may occur due to:
FX-related variances
Timing differences between entities
Rounding differences
Minor value inconsistencies
Missing or unmatched transactions
Exchange rate application differences
Discrepancy handling is separate from transaction matching and focuses specifically on managing unresolved variances between counterparties.
How to Identify Discrepancies
Within the Reconciliation Analysis Screen:
Filter unmatched or partially matched transactions
Review transactions containing remaining variances
Compare balances between counterparties
Analyse outstanding differences requiring investigation
Status indicators generally display:
Green = Fully matched
Amber = Discrepancy identified
Red/Open Item = Unreconciled position
DISCREPANCY RESOLUTION OPTIONS
Once a discrepancy is identified, users may choose different resolution approaches depending on the nature of the variance.
OPTION A: RESOLVE DIFFERENCE (ADJUST & MATCH)
OPTION A: RESOLVE DIFFERENCE (ADJUST & MATCH)
Used when the discrepancy requires correction before reconciliation can be completed.
This workflow is typically used when:
An adjustment is required in the accounting records
Transactions contain incorrect values
Additional journals or corrections are necessary
The variance should not remain unresolved
Users may resolve differences either within the source accounting system or directly within GATHER.nexus.
OPTION B: SKIP ADJUSTMENT AND RECONCILE
OPTION B: SKIP ADJUSTMENT AND RECONCILE
Used when users decide to reconcile transactions operationally without creating an adjustment entry in the accounting system.
This workflow is appropriate when:
The discrepancy has been reviewed and acknowledged
No accounting adjustment is required in the current period
The variance is considered operationally acceptable
The user does not want to create an adjustment within the source ledger
How Skip Adjustment and Reconcile Works
When transactions are selected for reconciliation and a difference remains:
The system displays the remaining variance amount
Users may choose Skip Adjustment and Reconcile
The user is prompted to enter a reason for the discrepancy
The transactions are reconciled despite the remaining difference
No journal or adjustment entry is posted into the accounting system
Result
Once completed:
The transactions are marked as reconciled
The discrepancy amount remains visible within reconciliation records
The user explanation is retained as part of the audit history
No accounting adjustment is created
This workflow allows operational reconciliation to continue while preserving visibility of unresolved variances.
OPTION C: IGNORE DISCREPANCY
OPTION C: IGNORE DISCREPANCY
Ignore Discrepancy is a separate user-controlled workflow used to formally acknowledge unresolved differences without adjusting or removing the variance.
This functionality is typically used for:
Immaterial variances
Minor FX-related differences
Timing differences expected to self-resolve
Operationally accepted discrepancies that do not require correction
Importantly, Ignore Discrepancy does not eliminate the discrepancy or modify the underlying transactions.
Instead, it records that the discrepancy has been intentionally reviewed and accepted by the user.
How Ignore Discrepancy Works
Within the reconciliation overview:
Review the identified discrepancy
Confirm that no corrective action or adjustment is required
Manually select Ignore Discrepancy
Enter a reason explaining why the discrepancy is being ignored
The system then:
Records the explanation as part of the reconciliation history
Marks the discrepancy visually using a strikethrough indicator
Preserves visibility of the variance within reporting and reconciliation views
Maintains the discrepancy as part of the audit trail
Does not create any journal or accounting adjustment
Result
Once completed:
The discrepancy is formally acknowledged as ignored
Original transactions remain unchanged
The ignored variance remains historically visible
Audit traceability is preserved
Users retain ongoing visibility of ignored discrepancies for review and reporting purposes
Ignored discrepancies may continue appearing in future periods depending on the account type and source ledger balances.
Carry Forward Behaviour
Profit & Loss Accounts
Ignored discrepancies associated with P&L accounts generally do not carry forward into future reconciliation periods.
Balance Sheet Accounts
Balance Sheet discrepancies may continue appearing in future periods because closing balances are retrieved directly from the underlying accounting system.
This ensures consistency between source ledger balances and reconciliation reporting within GATHER.nexus.
ADJUSTMENTS AND FLEXIBILITY
Adjustment workflows allow users to resolve variances without rebuilding or reprocessing complete transaction flows.
Common adjustment scenarios include:
FX variances
Rounding differences
Timing-related differences
Minor mismatches between systems
Example Scenario
Entity A reports: 2,000
Entity B reports: 1,980
Difference identified: 20
Resolution Options
OPTION A: Adjust in Source Ledger
OPTION A: Adjust in Source Ledger
Users may correct the original transaction directly within the accounting system using:
View in Xero
View in QuickBooks Online
This allows source transactions to be updated directly in the ledger environment.
OPTION B: Adjust within GATHER.nexus
OPTION B: Adjust within GATHER.nexus
Within reconciliation:
Click Add Journal
Enter the required adjustment amount
Save or post the journal depending on approval workflows
Return to the reconciliation screen
Match the adjusted entries
Result
Once resolved appropriately:
Intercompany balances become aligned
Reconciliation statuses are updated
Audit visibility is maintained
The group reporting position becomes ready for consolidation
Summary
Intercompany Reconciliation provides operational workflows that support:
Transaction matching
Auto Match suggestions
Controlled discrepancy management
Adjustment processing
Audit visibility and reconciliation traceability across entities
Features such as Auto Match, Skip Adjustment and Reconcile, Ignore Discrepancy, and journal adjustment workflows provide finance teams with flexibility while maintaining transparency and control throughout the reconciliation process.
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