SAP® Intercompany

SAP®

Inte

rcom

pany

Manual Input of Data into the Corporate Reporting Format

Intercompany Reconciliation Process

Lack of Adequately Experienced Local Accounting Staff

Problems with Local Accounting Systems

Inefficient and Poorly Managed Local Close Process

Not Understanding the Reporting Requirements and Content

Time Spent on Immaterial Issues and Adjustments

Late Adjustments at Local Level Requested by Local Mgmt

Translation Of Data, Local GAAP to Reporting GAAP

Mapping Date into Group Required Format

Obtain Local Executive Approval Of Final Reporting

Late Delivery Of Changes To Requirements By Head Office

Reconciliation between Management And Statutory Accounting

Late Sign Off By Local Auditors

Other(N/a For 2006) 13%

12%

14%

14%15%

18%

23%

25%28%29%

31%38%

41%

10%10%

European EPM Study 2011 – EPM International

Close Books

HQ

Reporting

Unit A

Reporting

Unit B

Traditional

ConsolidationIntercompany Reconciliation

D - 5 D + 0 D + 5 D + 10

Intercompany reconciliation has been cited for many years as one of the most common and frequently occurring barriers to a fast, high-quality close. The SAP Intercompany application lets reporting units reconcile intercompany balances earlier and liberates central finance from labour intensive involvement.

SAP® Intercompany

During the financial close process, organizations must eliminate intercompany activity so as not to overstate account balances. Traditionally, the reconciliation process is managed by corporate headquarters, which collects data, checks balances, corrects errors, contacts reporting units, and resolves issues. However, this process is better handled by the reporting units involved in the original counterparty transactions.

Eliminate the Bottlenecks in Intercompany Reconciliation

Close Books

D - 5 D + 5 D + 10D + 0

Peer-to-peer

Consolidation Uses For Saved TimeIntercompany Reconciliation

HQ

Redeploy staff/resources

MeetDeadlines

Cost Reduction

No Value

Work FewerHours

62%7%

13%

10%8%

Reporting

Unit A

Reconciled

Intercompany

Balances

Source Businessobjects Close Survey . bpm Magazine . May 2006

Agree/Disagree

Agree/Disagree

Reporting

Unit B

Intercompany Matching

SAP Intercompany enables your reporting units to reconcile intercompany balances in real time and allows your corporation to close its books faster. The first intercompany application to work independently of a consolidation system, SAP Intercompany provides the tools for your business units to debate and reconcile account balances and transactional level detail directly with one another. That means it eliminates extra work and delays at the corporate and divisional levels.

SAP Intercompany introduces a web-based, peer-to-peer communication channel between your reporting units that post intercompany balances and transactions against each other. This lateral flow of information and automatic matching helps ensure faster agreements – easing the burden on corporate finance and eliminating days from the time-consuming closing process.

Optimize the Intercompany Reconciliation Process

Effective collaboration is key when reconciling intercompany balances. The typical reconciliation process involves e-mails and phone calls that cannot be easily traced or documented. The collaboration features in SAP Intercompany enable users to attach comments and other documents to facilitate more efficient communication. SAP Intercompany offers sophisticated status tracking, e-mail summaries, alerts on significant events, and a complete audit trail.

SAP Intercompany can integrate with both SAP and non-SAP software and load source data from any general ledger or consolidation application.

Finally, SAP Intercompany enables a fast implementation thanks to a centralized deployment and ease of use and maintenance, which together increase ROI.

MDS ap is a professional service provider of Enterprise Performance Management and Group Finance. Our area of work spans from Strategic Finance, Planning Budgeting and Forecasting, Management Reporting, Analytics, Business Intelligence to Financial Consolidation and Legal Entity Management. Furthermore, we provide automated creation of filings, including annual/quarterly reports and board books with fully incorporated XBRL tagging.

The combination of EPM knowledge and the passion for quality enables our certified consultants to translate the customer’s requirement into optimized business processes using the latest information technology.

Why MDS ap?

For more information about MDS ap please contact our local offices or email us at: epm@mdsaptech.com

Part of the Midis GroupAffiliate of Sybase Products

Copyright © 2014 MDS ap, All rights reserved. mdsap_201407_epm_ics_4p

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