In today's globalized business world, intercompany transactions between various subsidiaries of a corporation are commonplace. However, these transactions must be carefully coordinated and offset against each other to ensure accurate financial reporting at group level. Traditional reconciliation processes are often time-consuming and unstructured, which can lead to delays in the closing process. As part 1, this blog article introduces the functions and benefits of the SAP ICMR solution, which, although not exclusively, can be essential for the consolidated financial statements with SAP S/4HANA Group Reporting.
What is SAP ICMR?
ICMR stands for Intercompany Matching and Reconciliation and is a standard solution from SAP that has been available since the SAP S/4HANA On-Premise1909 version and the SAP S/4HANA Cloud 1908 version. The solution offers a variety of functions to optimize the reconciliation process at individual and group financial statements level and is therefore not exclusively of interest to group accountants.
SAP ICMR Features
SAP ICMR offers a range of features that improve and speed up the reconciliation process:
1. Real-time voting
With access to real-time data, reconciliation processes can be carried out at any time without being tied to the accrual statement. This enables continuous monitoring and adjustment of intercompany balances.
2. Automatic document matching
The solution enables the automatic allocation of transaction documents based on individual reconciliation rules. This reduces manual effort and minimizes sources of error.
3. Automated booking processes
For minor differences, automated booking processes (posting rules) can be set up to quickly resolve discrepancies. This enables rapid troubleshooting and minimizes impact on the closing process.
4. Integration of external systems
The solution offers flexible data entry via Excel templates and enables the integration of external systems to ensure seamless data transfer.
5. In-app communication
By integrating SAP Fiori, users can seamlessly communicate with each other and quickly clarify differences in the reconciled data. This promotes efficient collaboration between teams.
6. Setting up workflows
The solution supports workflow-driven succession activities and approval processes to ensure that discrepancies can be identified and resolved quickly. This improves process efficiency and reduces delays in the closing process.
7. Planned coordination activities
The solution makes it possible to plan coordination activities to optimize the process flow and ensure that all necessary steps are carried out on time.
8. Review of reconciliation balances
By using real-time data, reconciliation balances can be reviewed and analyzed at any time. This improves the transparency and traceability of the voting process.
Benefits of SAP ICMR
Using SAP ICMR offers a variety of benefits for companies:
1. Improving collaboration
Fiori-based in-app communication allows teams to work together more efficiently and resolve discrepancies quickly.
2. Automate processes
Automating reconciliation processes reduces operational costs and speeds up the closing process.
3. Transparency and traceability
The available voting reports improve the transparency and traceability of the voting process.
4. Early identification of differences
The real-time data enables the early identification of differences, which enables timely intervention and improved consolidation.
5. Efficient troubleshooting
The integration of automated booking processes enables efficient troubleshooting using defined booking rules and thus minimizes effort in the closing process.
conclusion
SAP ICMR is a powerful solution for efficient intercompany reconciliation that helps companies speed up the closing process and improve the accuracy of financial reporting. By integrating ICMR into the consolidated financial statements with SAP Group Reporting, companies can optimize the entire consolidation process and increase the efficiency of their finance department. With the numerous features and benefits of SAP ICMR, companies are well equipped to effectively overcome the challenges of intercompany reconciliation and ensure their financial integrity.
