Intercompany accounting is one of the most complex processes a global office of finance undertakes, and it’s not often given the support it deserves. However, by automating the intercompany process through the usage of preventative and diagnostic controls, the collaboration and supporting documentation it requires can quickly be given the visibility and workflow it needs to become predictable, reliable, and hassle-free.
- When invoices are created, there’s a set process for how invoices are generated, approved and processed between the two parties
- Discrepancies between the JEs of both parties ERPs are detected and routed to appropriate parties
- AP and AR accounts within each company’s ERP are automatically reconciled and net within their GLs to give visibility into the period-end reconciliation process
How It Works
By utilizing Cadency’s preventative and detective controls for trade and non-trade (also known as product and non-product), transactions are managed from the initial invoice all the way through discrepancy management. The enhanced controls drastically reduce the number of accounts and transactions that require an auditor’s attention and decrease the time needed to come to a complete and safe close.