Purpose: Inter-co Balances across the entities in the XYZ Group need to reconcile at all times. If this is not the case, it means there is artificial P&L included within Group CONSOL nos. which is not in line with accounting standards. The purpose of this requirement is to discuss alternative solutions and their pros and cons in helping enhance control and automation with respect to booking as well as highlighting breaks in Inter-co balances.
Detailed Problem Statement: Inter-co Bookings are done by multiple accountants and upstream data entry in ERP (example by Ops). In the perfect world both sides of an Inter-co transaction within the group ought to be booked on the same day and at the same Group Presentation Dollar Value (USD) so that there is no break. However, this may not be done due to process error, human error or system error. Therefore, it is important to have a control report which tells us whether the Inter-co balances across the Group net off to Zero in USD terms and if there is a break then the drill down of the same to the transaction causing the breaks.
In preparing such a control report, it is important that the overall population can be separate into smaller and smaller buckets in order to be able to pin-point the problem. It is also important to breakdown the overall problem into smaller buckets in order to distribute the work involved in identifying and fixing the issue to different accountants within the organisation.
Few alternatives we found initially such as below.
1) Entity code and Vendor Code concade and flow on GL entry but seems to less feasibility
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