What does Intercompany Reconciliation ensure in OneStream?

Intercompany Reconciliation in OneStream is designed to ensure that transactions between different entities within an organization are balanced and validated. This process involves confirming that the financial data recorded by one entity matches the corresponding data recorded by its counterpart when transactions occur between them.

In practice, this means that if one subsidiary records a sale to another subsidiary, the revenue acknowledged in the selling entity must match the expense recorded by the purchasing entity. This balancing and validation help to eliminate discrepancies and maintain accurate financial records across the organization. Such reconciliation is vital for accurate consolidated financial reporting, ensuring that entities are not incorrectly inflating or deflating their results.

The other options do not fully capture the essence of intercompany reconciliation. While identical transactions might occur, the objective focuses more on balance and validation rather than exact identity. Recording transactions only in one entity would lead to incomplete financial information, and manual recording would not leverage the automated capabilities of OneStream, potentially leading to errors rather than ensuring accuracy effectively.