In context of financial period end closing, prior to running group consolidation, Intercompany Matching and Reconciliation (ICMR) can be run to identify and resolve discrepancies for business transactions between companies within the group. Even before Intercompany Eliminations in consolidation system are being run.
Setting up customer specific configuration seemed quick at first, however it revealed itself as being slightly more complex than I had expected – decided to share some insights. Ability to add new (custom) Reconciliation Cases by pairing up G/L Accounts for matching with inclusion of related workflow and postings for Intercompany Variances related to Accounts Receivable (AR) vs Accounts Payable (AP) – Non Reconciliation Accounts (NRA), is being discussed in this document.
ICMR – General
ICMR – Benefits
ICMR AR/AP – SAP Best Practice delivery
Reconciliation Status Overview (Accountant)
Matching Method Details (Setup)
Note: Matching Rule based on Reconciliation Account indicators K (Supplier) and D (Customer)
Manage Assignments – by Reconciliation Case (Accountant)
ICMR – Intercompany Variances
System Setup (Consultant)
New Custom Matching & Reconciliation Setup
- Use SAP Best practice as template (for target)
- Modify Matching Method & Reconciliation Case (for target)
- Assure/Update settings for Workflow and Variance Posting
- Conduct Validation (D/Q-system)
- Transport/adjust in P-system
1. Use SAP Best practice as template (for target)
Like Other Income/Expenses (SF102) Matching Method of AR/AP NRA is based on G/L Accounts.
2. Modify Matching Method & Reconciliation Case (for target)
3. Assure/Update settings for Workflow & Variance Posting
Workflow related settings
Note: for assignment by Team (under Recipients) use Team which was created in prior step
Variance – Automatic Postings
4. Conduct Validation (D/Q-system)
5. Transport/Adjust P-system
Creation of Workflows directly in Production System require adequately assigned Business Roles.
Otherwise, this will result in Error messages, as per below illustration.
Make sure Unrestricted “Write” access with Business Role “BR_RECON_ACCOUNTANT” has been granted. 😊
Aside from “help.sap.com” more documentation on ICMR is being available via Learning on Intercompany Reconciliation Process accessible via SAP S/4HANA SAP Fiori Launchpad, as per below.
With SAP S/4HANA Public Cloud (2208) ICMR is a feature utilized by business users in the finance space to gain rapid transparency and assure quality in period end closing.
Hope you found this blog helpful, looking forward to hearing your feedback.