BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Document selection and data storage
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Automatic presentation of reconciled and non-reconciled data
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Automatic assignment of documents
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Manual reconciliation and communication
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Detailed explanation-1: -Intercompany reconciliation is the verification of transactions that take place between two units or subsidiaries of the same parent company. Many businesses have divisions, subsidiaries, franchises, or other units that act independently but are owned by a larger parent company.
Detailed explanation-2: -In the standard functionality, SAP Intercompany Reconciliation (ICR) selects documents per SAP system and client. It is also possible to integrate external data into the reconciliation process. In order to avoid currency conversion differences, the documents are reconciled in the transaction currency.
Detailed explanation-3: -IC reconciliation is when two branches of a parent company reconcile figures as a result of engaging in a transaction. One child company is the seller to the other child company is the purchaser. Thus, in order to ensure that the correct figures appear on financial statements, the figures need to be reconciled.