A phase-by-phase checklist covering pre-close cutoff, intercompany matching and reconciliation, elimination entries, and consolidation review. Track balances across entities and close faster.
Check off tasks, assign owners across entities, and set due dates. The live preview updates as you work through each phase.
Align all entities on the same transaction cutoff date and FX rate. Distribute the close calendar so every subsidiary knows its deadlines.
Assign an IC accountant for matching, entity controllers for sign-off, and a group controller to approve eliminations and the final package.
Run the IC balance matching report and resolve every mismatch above your materiality threshold before posting eliminations.
Eliminate IC receivables/payables, revenue/COGS, unrealized profit, loans, and dividends. Confirm the net IC balance is zero.
Check the consolidated trial balance for residual IC amounts, verify CTA impacts, prepare footnote disclosures, and archive workpapers.
Pre-built with entity-pair matching, elimination entry templates, FX rate columns, and auto-calculated net IC balances.
Print-friendly IC close workpaper layout with checkboxes, entity sign-off sections, and elimination entry details.
Locked format for audit archives. All 28+ tasks grouped by phase with entity pair and status columns.
A typical intercompany close runs over seven business days. Here is how the checklist phases map to each stage of the cycle.
Bluecopa reconciles IC balances across entities in real time, auto-generates elimination entries, and flags mismatches before close day.
An intercompany close is the process of reconciling, matching, and eliminating transactions between entities within the same corporate group before producing consolidated financial statements. The goal is to ensure no intercompany balances or transactions inflate the group's reported revenue, expenses, assets, or liabilities.
Set a hard cutoff date for all IC transactions. Every entity must post its IC invoices, loan accruals, and transfer pricing adjustments by this date. Align on a single FX rate source for cross-currency pairs.
Run a balance matching report across all entity pairs. Investigate and resolve mismatches above your materiality threshold. Common causes include timing differences, unrecorded invoices, and FX rate discrepancies.
Eliminate IC receivables/payables, revenue/COGS, unrealized profit on inventory, loan balances, interest, and dividends. The net IC balance after eliminations should be zero for every entity pair.
Check the consolidated trial balance for residual IC amounts. Verify currency translation adjustments, confirm minority interest calculations, and prepare the IC disclosure schedules for financial statement footnotes.
A journal entry posted at the consolidated level to remove intercompany balances and transactions so they do not inflate the group's financial statements. Common eliminations cover IC receivables/payables, revenue/COGS, and unrealized profit.
Profit recorded by one entity on goods or services sold to another entity within the same group, where the inventory has not yet been sold to an external customer. This profit must be eliminated on consolidation until the goods leave the group.
The price at which goods, services, or intellectual property are transferred between entities within the same corporate group. Transfer prices must comply with arm's-length standards set by tax authorities in each jurisdiction.
The process of comparing intercompany balances reported by counterparty entities to confirm they agree. Mismatches are investigated and resolved before elimination entries are posted.
The gain or loss that arises when translating a foreign subsidiary's financial statements from its functional currency to the parent's reporting currency. CTA is recorded in other comprehensive income, not the income statement.
The portion of a subsidiary's equity and net income attributable to shareholders other than the parent company. Also called non-controlling interest. It must be calculated correctly after IC eliminations are applied.
Pre-close, core close, and post-close tasks for a 5-day financial close cycle.
Scoping, control design, operating effectiveness testing, and deficiency reporting for SOX compliance.
Period-over-period variance analysis tasks for income statement and balance sheet accounts.
Entity-pair balance matching, mismatch investigation, and sign-off tasks for ongoing IC recon.
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