Record-to-Report

Intercompany Reconciliation Agent

Matches transactions between entities and generates the elimination entries for consolidation.

All agents Next: Financial Reporting

An example conversation with the agent

AI Impact

33%

Faster monthly close cycle

31%

Lower processing cost

Faster reconciliation preparation

Key Capabilities

IC Matching

Auto-matches payables and receivables across entities

FX Resolution

Resolves exchange rate mismatches between entity pairs

Timing Analysis

Identifies and documents goods-in-transit timing differences

Elimination Entries

Auto-generates consolidation elimination entries

Scenario

Mei Ling Tan, Intercompany Accountant

Reconciling S$67M in intercompany transactions across 12 entity pairs

148 transactions across 12 entity pairs, S$67M total — 132 match automatically. Looks clean

“Run the IC matching — how many transactions reconciled automatically?”

The catch: a ¥18M royalty between Shanghai and Shenzhen is unmatched for the second month running — last month it held up the close by half a day

“What happened with the Shanghai-Shenzhen royalty? This held us up last month”

The agent resolves all 16 exceptions (8 timing, 4 FX, 2 missing, 2 investigating), generates 12 elimination entries for consolidation

“Generate the elimination entries for the consolidated reporting package”

Intercompany Ledger — 24,530 Records

Centralized ledger of all intercompany receivables, payables, and loan balances across legal entities

Field	Description
IC Reference	Unique intercompany transaction identifier
Sending Entity	Legal entity originating the charge (e.g., ACME Corp US)
Receiving Entity	Legal entity receiving the charge (e.g., ACME Corp UK)
Amount / Currency	Transaction amount in original and reporting currency

Transaction Types

Type	Description
Trade	Goods and services sold between entities
Loan	Intercompany financing and interest charges
Management Fee	Shared service and management fee allocations

Entity Transactions — 186,420 Records

Individual subsidiary GL transactions tagged with intercompany counterparty codes

Field	Description
Entity Code	Legal entity identifier (e.g., 1010, 2020)
GL Account	General ledger account number and description
Posting Date	Date the transaction was posted to the ledger
Counterparty	Intercompany partner entity code

Transfer Pricing Agreements — 312 Records

Arm's length pricing policies and benchmarks governing intercompany charges

Field	Description
Agreement ID	Transfer pricing agreement reference
Service Type	Type of service (e.g., IT, R&D, Management)
Benchmark Rate	Approved arm's length rate or markup percentage
Tolerance Band	Allowable deviation range from benchmark

Elimination Rules — 84 Records

Consolidation rules defining how intercompany balances and transactions are eliminated

Field	Description
Rule ID	Elimination rule identifier
Source Account	GL account to be eliminated (e.g., IC Revenue)
Offset Account	Corresponding contra account (e.g., IC COGS)
Threshold	Minimum balance requiring elimination

match_transactions

Match intercompany transactions between sending and receiving entities by reference, amount, and date.

Input

sending_entity receiving_entity period tolerance

Output

Matched transaction pairs with match status, confidence score, and variance details

identify_mismatches

Detect and categorize unmatched or partially matched intercompany balances with root cause analysis.

Input

entity_pair period threshold_amount mismatch_type

Output

Mismatch records with category, variance amount, aging, and suggested resolution

generate_eliminations

Create consolidation elimination journal entries for matched intercompany balances and P&L items.

Input

consolidation_group period elimination_type

Output

Journal entries with debit/credit accounts, amounts, and elimination rule references

search_ic_balances

Query intercompany balances by entity, counterparty, account type, and reporting period.

Input

entity counterparty account_type period

Output

Balance records with entity pair, account, amount, currency, and reconciliation status

resolve_disputes

Manage and track intercompany dispute cases, assign ownership, and recommend resolution actions.

Input

dispute_id entity_pair min_amount aging_days

Output

Dispute details with root cause, owner, escalation status, and resolution recommendation

validate_transfer_pricing

Check intercompany charges against transfer pricing agreements and flag deviations from arm's length benchmarks.

Input

entity_pair service_type period

Output

Compliance report with benchmark comparisons, deviation flags, and adjustment amounts

Intercompany ReconciliationMeridian Industries · November close

Example