Intercompany Agent
Match IC balances, clarify timing differences, prepare elimination entries.
Matches intercompany balances between group entities, identifies timing differences and currency differences, prepares elimination entries and escalates unresolved discrepancies.
Score Dashboard
What This Agent Does
In a multi-entity group, intercompany reconciliation is one of the biggest time drains in the month-end close. Each entity posts independently, with different timing, currencies and sometimes differing transfer prices. The result: discrepancies that must be manually clarified - often via email ping-pong between accountants in different countries.
The Decision Layer breaks intercompany reconciliation into ten decision steps. Balance matching per entity pair runs automatically. Timing differences are recognised and classified as such. Currency differences are calculated at the reporting date rate. Transfer pricing discrepancies are identified and escalated to the responsible clerk.
The result: clarification communication to sister entities runs structured instead of ad hoc. Elimination entries for consolidation are prepared. And the TP conformity assessment - a task that always remains with the human - has a clean data basis.
Micro-Decision Table
Match IC balances Do balances between entity pairs agree? Rules Engine
Numerical matching
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
Identify timing differences Is the difference explainable by different posting dates? Rules Engine Auditor
Date-based = R, interpretation = A
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
Challengeable by: Auditor
Calculate currency differences What amount results from conversion at reporting date rate? Rules Engine
Reporting date rate calculation
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
Identify transfer pricing discrepancies Does the posted price differ from the contractual price? Rules Engine Auditor
Contractual price vs. posting - exact = R, interpretation = A
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
Challengeable by: Auditor
Prepare elimination entries What is the correct offsetting entry? Rules Engine
Mirroring the IC transaction
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
Escalate unresolved differences Must a clerk clarify the difference? Human Auditor
Clarification between entities requires human communication
Decision Record
Challengeable: Yes - via manager, works council, or formal objection process.
Challengeable by: Auditor
Trigger clarification communication How is the sister entity informed? Rules Engine
Template = R, context-specific wording = A
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
Create reconciliation report Is the reconciliation status documented? Rules Engine
Formatted report per template
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
Escalation on deadline breach Is escalation triggered when clarification deadline is breached? Rules Engine
Deadline plus amount threshold
Decision Record
Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.
TP conformity assessment Are transfer prices conformant with OECD guidelines? Human Auditor
Transfer pricing law requires human assessment
Decision Record
Challengeable: Yes - via manager, works council, or formal objection process.
Challengeable by: Auditor
Decision Record and Right to Challenge
Every decision this agent makes or prepares is documented in a complete decision record. Affected parties (employees, suppliers, auditors) can review, understand, and challenge every individual decision.
Prerequisites
- Multi-entity ERP with cross-entity access (SAP S/4HANA, Oracle or equivalent)
- Defined IC entity pairs with account mapping
- Access to reporting date exchange rates (ECB, Reuters or equivalent)
- Transfer pricing agreements as reference data
Governance Notes
GoBD-relevant: intercompany transactions are tax-relevant and subject to retention obligations per AO Paragraph 147. Transfer prices must comply with OECD guidelines and national regulations. The documentation obligation per Paragraph 90 Abs. 3 AO requires traceable records of IC transactions.
Tax audits regularly focus on IC transactions. Complete reconciliation reports and elimination documentation significantly shorten audit duration.
§203 StGB-relevant data is encrypted end-to-end and never passed to AI models in plain text.
Process Documentation Contribution
Infrastructure Contribution
The Intercompany Agent builds the multi-entity reconciliation logic that the Consolidation Agent uses directly. The clarification communication pattern (structured request to other entities) becomes the standard for all cross-entity processes. The transfer pricing monitoring delivers data to the Transfer Pricing Agent.
Builds Decision Logging and Audit Trail used by the Decision Layer for traceability and challengeability of every decision.
Related Agents
Reconciliation Agent
Reconcile subledgers against general ledger - continuously instead of at period-end.
Close Checklist Agent
Orchestrate the month-end close - check dependencies, monitor deadlines, create protocol.
Journal Entry Agent
Prepare closing entries - recognise recurring patterns, ensure four-eyes review.
Frequently Asked Questions
Does the agent work with different ERP systems across entities?
Yes. The agent works with standardised interfaces. Whether both entities use SAP or one uses SAP and the other Oracle - matching runs via configured data exports. The account mapping is configured once.
How are transfer pricing discrepancies handled?
The agent identifies discrepancies between posted and agreed price and escalates them to the responsible clerk. The TP conformity assessment always remains with the human - the agent delivers the data basis, not the judgement.
What happens with entities in different time zones with differing close dates?
Timing differences from different posting dates are automatically recognised and classified as such. The agent distinguishes between real differences and time-related discrepancies that resolve in the following month.
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