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Inter-Entity Reconciliations Explained

Hannah Olsson avatar
Written by Hannah Olsson
Updated over a week ago

The Inter-Entity Reconciliation (IER) feature helps you confirm that balances recorded in one entity align with the corresponding balances in another. It’s designed to make inter-company balances accurate and easy to manage.

When to use inter-entity reconciliations

You’ll typically use IER when specific account balances should match across entities, such as for the following inter-entity situations:

  • Interest charges

  • Rent

  • Related party loans

  • Service charges

  • Distributions

  • Dividends

Benefits of inter-entity reconciliation feature

  • Prevent mismatches across entities.

  • Save time by removing the need for manual checks.

  • Improve visibility by showing reconciliation status directly in worksheets.

  • Stay consistent by reusing reconciliations across future years.

How to get started

There are two steps to working with IER:

  1. Setting up Inter-Entity Reconciliations - define which accounts in one entity should reconcile to accounts in another.

  2. Using Inter-Entity Reconciliation Worksheets - apply those reconciliations within workpapers to check balances side by side.

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