ICR - Rules for Reconciliation

[Former Member]

Hi experts,

I am thinking about implementing ICR (Intercompany Reconciliation) in our system.

Could you please tell me about the customizing of defined rules for automatic reconciliation?

For example, can I reconcile documents with different transaction currency / amounts?

Thanks in advance,

Best regards,

Ben

[former_member572578]

Hello Ben,

Please refer to the attachments ICR_documentation.zip and ICR_Assignment_Documentation.zip of note 1164059 <https://service.sap.com/sap/support/notes/1164059>.

To give you a quick answer: The rules are fully customizable and only the field you include in the rule will be compared to determine whether any data records match.

Generally it is recommended that you perform automatic assignment based on reference number only - independent of currency or amount. That way you will get document groups where you can see right away what the posting errors are that resulted in the reported differences.

For more info, please refer to the note.

Best regards,

Ralph

[Former Member]

Hi Ralph,

Many thanks for your helpful answer and for the documentation.

My only concern is that we cannot avoid manual reconciliation. If I understand correctly the documentation, as soon as the reference number was not assigned correctly, manual reconciliation is required. The additional assignment rules will help the user but he will have to manually analyze documents.

Is it possible to avoid manual reconciliation?

Do you have any idea how long it takes to implement the ICR tool in SAP?

Thanks in advance,

Best regards,

Ben

[Former Member]

Hi Ben,

We are in the process of rolling the functionality out across all European operations so happy to share our experiences. To answer your first question, it is improbable to have a fully automated reconciliation , unless you have a perfect situation where references are not changed, everyone communicates with each other, no failures in interfaces/postings and every transaction is captured in same periods...unlikelly. So there will always be an element of manual intervention. However, this need not be a massive task as we are getting very high hit-rates i.e. out of 27000 documents (on each side) we may end up with 35 and 75 unreconciled items respectivelly. The users also seem to appreciate the level of information presented on a single screen and react positivelly to the functionality.

Implementation time will vary on your setup i..e. how many companies involved, volume of transactions, master data setup and the complexity of intercompany process i.e. does every legal entity deal with every other entity in the group. So you could be looking at a couple of weeks to months. Also make sure that your process for dealing with exceptions/unreconcilled items is in place i.e. do you assign manually in the recon transaction or request correction postings and let next selection/assignment take care of it. Also validate/automate the payment/clearing process as that will make life easier.

Please note that I am only basing the comments on the AP/AR recon as we have not implementate the GL side of the recon...yet.

Hope this helps.

Kris

[Former Member]

Hi

Intercompany (IC) reconciliation rules balance transactions that occur between different entities in the company. For example, if a company called MyGreatResorts owns a resort in Tahoe and another resort in Toronto, you can use IC reconciliation to balance the intercompany transactions between Tahoe and Toronto.

IC reconciliation is included with two types of standard models:

The financial model with shares calculations

The financial model without shares calculations

[Former Member]

Hi Ralph,

We are on ECC 6.0 EP6.  In this EP, I noticed quite a bit of notes applied.  We had worked to implement this under EP2, but found some issues with process 002 for OIM accounts that weren't Intercompany, but did notice in EP6, that new fields are available to apply more filtering, so this will solve that problem.

Do you happen to have an updated set of documentation?  The one in the link above is from 2007, so was curious if something more recent is available.

Thank you,

Joe Caminiti