Establish a system-matching account for each intercompany pairing. In the Account dimension, under the System, Interco_Matching hierarchy, create one intercompany matching account for every intercompany pairing.
System intercompany accounts
System intercompany accounts are specialized accounts used to record transactions between different entities within the same corporate group. These accounts ensure that intercompany transactions are accurately captured and reconciled.
Intercompany matching
You must create a system-matching account for every combination of intercompany entities. In the Account dimension, create one account for each company that matches. This account is a child in the System's Interco_Matching hierarchy.
Define the Classification attribute as IntercompanyReconciliation for the children of Interco_Matching. Label the Interco_Matching account's Tags attribute with #IntercompanyMatching#.
The table details the children of the Interco_Matching system account:
| Member Name | Caption | Classification |
| Interco_Matching | Interco_Matching Intercompany Matching | Asset |
| Volumes | Volumes | IntercompanyReconciliation |
| Intercompany ARAP | Intercompany ARAP | IntercompanyReconciliation |
| Dividends | Dividends | IntercompanyReconciliation |
| Intercompany Loans | Intercompany Loans | IntercompanyReconciliation |
| Sales and Cost of Sales | Sales and Cost of Sales | IntercompanyReconciliation |
| Interest Income and Expense | Interest Income and Expense | IntercompanyReconciliation |
| Management Fee and Expense | Management Fee and Expense | IntercompanyReconciliation |
Intercompany auto booking
You can use this feature to create an Intercompany Auto Booking account for each intercompany pairing.
Auto intercompany booking audit member
Your provisioned system already has an Auto Interco Booking Audit, namely IntercoAdjustment member.
