Intercompany Accounting and Reconciliation (AF-064) Training Course

Intercompany Accounting and Reconciliation

In groups with many legal entities, intercompany transactions are a frequent source of delay and error at period end. Mismatched balances, inconsistent cut-off, currency…

5 daysClassroom

49Upcoming dates

12Cities

£2,250Fees from

Course overview

Introduction

In groups with many legal entities, intercompany transactions are a frequent source of delay and error at period end. Mismatched balances, inconsistent cut-off, currency differences and unclear ownership can hold up consolidation, distort results and attract audit findings.

This Intercompany Accounting and Reconciliation training course gives participants a structured approach to recording, matching, reconciling, settling and eliminating intercompany transactions. Participants learn how to design intercompany policies and agreements, manage netting and settlement, resolve differences quickly and prepare reliable eliminations for consolidated financial statements.

The course also covers governance, controls, tax and transfer pricing interfaces, and the technology options available to automate intercompany processes and support a faster, cleaner close.

Course Objectives

By the end of this training course, participants will be able to:

Explain the types of intercompany transactions and their accounting treatment
Design an intercompany policy covering agreements, pricing, cut-off and settlement
Establish efficient matching and reconciliation processes across entities
Investigate and resolve intercompany differences, including currency effects
Manage intercompany netting, settlement and cash flows
Prepare consolidation eliminations for balances, transactions and unrealised profits
Implement controls and governance that reduce intercompany errors
Evaluate automation options for intercompany accounting

Target Audience

This training course is suitable for a wide range of professionals, including:

Group and consolidation accountants
Financial controllers of subsidiaries and regional entities
Shared service centre accounting teams
Record-to-report process owners
Treasury professionals involved in settlements
Internal and external auditors
Finance systems and transformation specialists

Training Methodology

Participants work through a multi-entity case study using spreadsheets to record transactions, run reconciliations, analyse differences and prepare eliminations. Group discussions, process design workshops and control reviews help participants transfer the techniques to their own group structures.

Target Competencies

Intercompany accounting
Balance reconciliation
Consolidation eliminations
Settlement and netting management
Financial close control
Finance process improvement

Course outline

1Day One: Intercompany Fundamentals

Group Structures: Parents, subsidiaries, branches and joint arrangements
Types of Intercompany Transactions: Sales, services, loans, recharges and dividends
Accounting Treatment: Recording transactions consistently in each entity
Common Problems: Timing, currency, coding and pricing mismatches
Impact on the Close: Delays, adjustments and audit risk
Roles and Responsibilities: Entities, group finance, treasury and tax
Case Study: Diagnosing intercompany issues in a regional group

2Day Two: Policy and Process Design

Intercompany Policy: Agreements, invoicing rules, cut-off and dispute resolution
Intercompany Agreements: Service, supply and financing terms
Charging Mechanisms: Allocations, recharges and service fees
Transfer Pricing Interface: Aligning accounting with tax policy
Master Data: Counterparty codes and chart of accounts design
Process Calendars: Aligning timelines across entities
Workshop: Drafting an intercompany policy framework

3Day Three: Matching and Reconciliation