ICO RECONCILIATION

TOOL
PURPOSE

THE PURPOSE OF ICR IS TO ENSURE THAT INTERCOMPANY DOCUMENTS
FROM ACCOUNTING TRANSACTIONS WITHIN THE CORPORATE GROUP
CORRESPOND TO ONE ANOTHER. IT CONTAINS TOOLS WHICH CHECK THAT
DOCUMENTS HAVE BEEN CORRECTLY ASSIGNED TO A BUSINESS
TRANSACTION AND WHICH ALSO ENABLE YOU TO FIND CORRESPONDING
DOCUMENTS EASILY AND TO MAKE ADDITIONAL ASSIGNMENTS. ICR
OPERATES ON THE LEVEL OF COMPANIES AND PARTNER COMPANIES
(TRADING PARTNERS).
IF THE RECONCILIATION PROCESS IS SUCCESSFUL THIS WILL ULTIMATELY
LEAD TO REDUCED DIFFERENCES IN CORPORATE GROUP CONSOLIDATION.

RATIONALE

THE VPC (VODAFONE PROCUREMENT COMPANY) MANAGES ALL GLOBAL
PRODUCT CATEGORIES. WHERE AN OPCO (OR ANY VODAFONE COMPANY)
NEEDS TO PURCHASE A PRODUCT IN ONE OF THESE THEY MUST BUY IT
FROM VPC. MOREOVER, THERE CAN ALSO BE CASES WHERE DIFFERENT
COMPANY CODES INTERACT AMONG THEMSELVES. THIS MAKES IT
IMPERATIVE TO HAVE AN INTERCOMPANY RECONCILIATION (ICR) TOOL IN
PLACE TO ARRANGE FOR PROPER RECONCILIATION ACTIVITIES BETWEEN
ENTITIES.

VPC SCENARIO
ICR PROCESS CYCLE
SAP AG 2005, Intercompany Reconciliation, 4
Intercompany Reconciliation Process
Data Selection Data Storage
Communication
Data Presentation
& Analysis
Post Corrections *
* Available through programming interface (BAdI)
ICR PROCESS CYCLE
DATA WILL FIRST BE SELECTED FROM THE SENDER SYSTEMS AND THEN
STORED CENTRALLY IN THE RECONCILIATION SYSTEM. THE DATA IS
ANALYZED AND ISSUES ARE COMMUNICATED TO THE INVOLVED
ACCOUNTANTS. AFTER THIS CORRECTIONS (AS WELL AS NEW
DOCUMENTS) ARE POSTED. THESE WILL THEN BE INCLUDED IN THE NEXT
DATA SELECTION.

THESE STEPS ARE REPRESENTED IN THE PROGRAMS TO BE EXECUTED
FOR ICR:
SELECT DOCUMENTS - DATA SELECTION & DATA STORAGE
ASSIGN DOCUMENTS AUTOMATICALLY - PREPARATION FOR DATA
PRESENTATION & ANALYSIS
RECONCILE DOCUMENTS MANUALLY - DATA PRESENTATION & ANALYSIS
AND COMMUNICATION

Select Documents
When data selection is performed the relevant document lines are selected from the
sender systems and stored in the reconciliation system. Which document lines are
relevant depends on the process as well as the time period of the current
reconciliation cycle
FBICS3 Select Customer / Vendor Open Items

SAP menu Accounting Financial Accounting Customers Periodic
Processing Closing Check/Count Cross-System Intercompany
Reconciliation
Or
SAP menu Accounting Financial Accounting Vendors Periodic
Processing Closing Check/Count Cross-System Intercompany
Reconciliation

The program will select the relevant data records for the specified companies. The
fiscal year and period will be used to determine the key date for the selection of
open items.
The program will produce a protocol displaying some statistical information about
the program run as well as messages for any issues that came up during the
program run.



Assign Document Automatically
After the relevant documents have been transferred to the reconciliation system
they are analyzed by this program. The program tries to find documents belonging
to the same business transaction using customizable rules. Matching documents
are assigned to each other
FBICA3 Assign Customer / Vendor Open Items

The paths in the SAP menu are the same as for the data selection programs
The protocols of the programs provide some statistical information about the
number of records analyzed and the number of records which could be assigned
using the rules set up in customizing.


Reconcile Document Manually
This is the main transaction for intercompany reconciliation. It is geared towards
finding documents which cause differences.

FBICR3 Reconcile Customer / Vendor Open Items

The program produces an overview screen with a tree structure showing the
company relationships which require reconciliation.

The tree shows the company on the first level and the partner on the second level.
The third level contains a link to the documents to be reconciled. The second
column shows the difference on the business relationship level in the display
currency which the user can specify on the selection screen.

Select Documents Manually
Number Program Transaction Process
001 FBICRC001_DATA_SEL FBICS1 GL open items
002 FBICRC002_DATA_SEL FBICS2 Accounts
003 FBICRC003_DATA_SEL FBICS3 Customer/Vendor Open Items
Number Program Transaction Process
001 FBICRC001_DATA_ASSIGN FBICA1 GL open items
002 FBICRC002_DATA_ASSIGN FBICA2 Accounts
003 FBICRC003_DATA_ASSIGN FBICA3 Customer/Vendor Open Items
Number Program Transaction Process
001 FBICRC003_DATA_REC FBICR1 GL open items
002 FBICRC003_DATA_REC FBICR2 Accounts
003 FBICRC003_DATA_REC FBICR3 Customer/Vendor Open Items
Assign Documents Automatically
Reconcile Documents Manually