Intercompany transactions are shown on a single interface with sorting by dimension and other attributes

Description

Intercompany transactions consolidation in Corporate Performance Management (CPM) software allows the organization to view all intercompany transactions across multiple departments or branches into a single interface. This allows visibility across the entire business when viewing transaction movement during financial close.

Example Use Case

Scenario: Each subsidiary has independent intercompany transactions that are managed separately in a spreadsheet. This scenario can be complex and cumbersome, making it challenging to gain an overall picture of the corporation's financial health. Mistakes are made often due to the distributed nature of the process.

Solution: Through consolidation of intercompany transactions within the CPM software, the corporation can view all these transactions in a single interface. Transactions can be sorted by dimensions like 'Subsidiary', 'Region', 'Type of Transaction', and more. This consolidation simplifies the viewing, tracking, and management of intercompany transactions.

Considerations

This is helpful for both consolidation and general planning. Most interco is trapped in the ledger or on a spreadsheet, and hard to centralize. Having these on a single, searchable interface will save time.

Smaller companies will not need this feature but might in the future as they grow. An acquisition may quickly make this feature critical. As such, always think 5 years into the future when selecting a CPM solution to protect the business from having to re-buy a more robust solution.

Questions to Ask a Vendor

Query Capability: How can intercompany transactions be sorted and viewed in the CPM system? Can the data be filtered by various dimensions and attributes such as date, department, transaction type, etc.?

Customized View: Can the views be customized based on the user? For example, can we limit availably of intercompany transactions that affect a specific

Other Locations: Will the entries show up on other screens such as an account view in a subsidiary?