Publishing scope: This article is not a statutory consolidation or independent audit opinion. It explains the data-separation approach for group-reporting readiness.
Intercompany movement is not performance
An amount transferred from one group company to another doesn't carry the same signal as an external customer collection. Unless intercompany movement is separated out, per-entity profitability and cash strength can look better or worse than they actually are.
A per-entity reading is required
Each company's payables, receivables, collections, payments, cost and period result should be read separately first. Then it should be carried into group-reporting data preparation with an intercompany-transfer label.
The control set
- Label intercompany payables/receivables movement separately.
- Separate external customer and supplier movements from intercompany ones.
- Keep a source and approval trace for every elimination.
- Show unreconciled movement as a warning in the executive summary.
Where does this connect inside IconVio?
This article supports the Holding solution page and the IV-FINANCE system page.