Intercompany Matching and Reconciliation (ICMR)

Intercompany Matching and Reconciliation (ICMR) is an out-of-box solution that is built-in SAP S/4HANA

Intercompany reconciliation is a process of reconciling intercompany financial accounts between two or more companies. It is the process of transferring assets, liabilities, or equity accounts between companies to ensure the consistency of financial statements. This process is usually initiated by the management of the larger company or companies, with the smaller company or companies being the target of the reconciliation.

One of the main issues of intercompany reconciliation is to determine the transfer of assets and liabilities between the two companies. The transfer of equity accounts is a bit different and is usually initiated by the accounting firm of the larger company.

What is Intercompnay Matching and Reconciliation (ICMR)?

ICMR is a next generation intercompany reconciliation solution available starting from SAP S/4HANA On-premise 1909 and SAP S/4HANA Cloud 1908. Your financial data is processed and reconciled in real time by the ICMR solution, which matches transactions without using any ETL (extract, transform, load) steps.

ICMR increases the process’s visibility and transparency, by eliminating the delays that are frequently encountered while addressing intercompany differences.

All this is possible with the Universal Journal table(ACDOCA) and simplifying the financial tables in SAP S/4HANA.

7 key features of ICMR

ICMR comes with following key features

  1. Built into SAP S/4HANA(core)
  2. Real-time reconciliation and matching at the transactional level
  3. Automatic resolution of discrepancies
  4. Amazing matching and reconciliation performance
  5. Modeling can be performed based on variety of organizational dimensions, such as company, profit center, and consolidation unit.
  6. Provides ability to read data directly from the remote systems
  7. It also provide a flexible matching and reconciliation rule definitions and workflow-based in-app communication.

ICMR Process Overview

SAP S/4HANA Intercompany Matching and Reconciliation (ICMR) is a 4 step process

  1. Collect Data
  2. Match Documents
  3. Solve Discrepancy
  4. Check Reconciliation Balances

ICMR Architecture

ICMR is an out-of-box solution available in SAP S/4HANA(core) without any additional license. The overall architecture contains three modules: Matching, Reconciliation, and Automatic Posting that you can find from the diagram below.

SAP S/4HANA ICMR Architecture
SAP S/4HANA ICMR Architecture (Source:

Reconciliation provides an aggregation-level perspective, while Matching focuses on matching at the transactional level. Together, the two modules are capable of processing, analyzing, and presenting two sets of data at both the aggregate and line item levels. For variance correction, accrual postings, or elimination postings, the final module Auto Posting offers an additional function.

ICMR Fiori Apps

SAP S/4HANA ICMR have set of apps to maintain datasources, define matching methods, automatic adjustment automatic logs etc.. The PFCG role SAP_BR_RECON_ACCOUNTANT (General Ledger Accountant – Intercompany) contains all ICMR related SAP Fiori apps. Below you can find the list of ICMR SAP Fiori apps in SAP S/4HANA.

1. Maintain Data Source

Each data source is given one or more CDS views as well as some business semantics, such as the fields that are utilised as the leading unit and partner unit, respectively.

For entity pairs like company and trade partner company, profit centre and partner profit centre, SAP provides the data sources for comparing journal entry data from the Universal Journal Entry Line Items database ACDOCA. Pre-delivered data sources have names that begin with “S”.

You can add your custom fields by extending the ICA_S_DIM and ICA_S_DIM_P structures in the back-end system and extend the standard CDS view by creating Extended CDS view using SAP ABAP Development Tools(ADT).

Business CatalogSAP_FIN_BC_ICA_ME_CONFIG (Intercompany Matching Settings)
SAP Fiori AppMaintain Data Source(ICADS)

2. Define Matching Method

As per SAP definition:

A matching method is a collection of matching rules and is used to match items from two data sets.

The filters for data selection in document matching and reconciliation can be defined in the Define Matching Method Fiori app. With the Define Matching Methods app, you can create, display, change, or delete matching methods.

Business CatalogSAP_FIN_BC_ICA_ME_CONFIG (Intercompany Matching Settings)
SAP Fiori AppDefine Matching Methods (F3862)

Configuration-type matching methods can be transported between systems only with a transport request by using transaction code ICATRM (Transport Matching Methods).

2.1. Define Additional Setting for Matching Methods (Optional)

You can create additional configuration settings for the appropriate matching methods. The following settings are available:

– Enable synchronization of clearing status

– Enable synchronization of reversal status

– Enable machine learning

3. Define Reconciliation Cases

You can create, display, modify, or delete reconciliation cases using the Define Reconciliation Cases app. On the list page, you may see a list of all your reconciliation cases.

You can check or modify any of a reconciliation case’s aforementioned characteristics and settings by going to the detail screen. Select Save to save your changes after you’ve made any. Any reconciliation cases that are no longer required can also be deleted.

Business CatalogSAP_FIN_BC_ICA_RECON_CFG (Intercompany Reconciliation Settings)
SAP Fiori AppDefine Reconciliation Cases (F3863)

4. Maintain Reason Codes

The reason code explains why some items are matched or if there are any post-processing tasks that need to be done. There are a number of reason codes that begin with “S” and are pre-delivered in SAP; you cannot modify or remove these codes. You have the option of starting from scratch or replicating an existing reason code.

Business CatalogSAP_FIN_BC_ICA_ME_CONFIG (Intercompany Matching Settings)
SAP Fiori AppMaintain Reason Codes

5. Define G/L Posting Document Template

You can define G/L posting document templates for various adjustment. To settle discrepancies between seller’s Account Receivables and buyer’s Account Payables, G/L posting document templates are used. There are a number of document templates that begin with “S” and are pre-delivered in SAP; you cannot modify or remove those templates.

6. Assign Document Templates to Companies

You can assign General Ledger (G/L) posting document templates to companies. You assign the defined document templates to combinatiions of company, trading partner, and reason code.

Starting from SAP S/4HANA 2020, posting rules are introduced to replace the document templates configured using customizing activities Define G/L Posting Document Templates and Assign Document Templates to Companies in the prior release.

7. Manage Workflows – Intercompany Variance Adjustment

When a user processes a matched assignment with a reason code that has an adjustment class, the variance adjustment process is kicked off in the Manage Assignments app. Add a workflow scenario to your reason code if you want the auto-adjustment to be reviewed and authorised beforehand.

For the approval of variance adjustments, WS78500087, a pre-defined workflow scenario, is provided. Using the Manage Workflows – Intercompany Variance Adjustment app, you can define your workflows for the auto-adjustment process based on this specific scenario.

8. Manage Teams and Resposibilities

To decide which agents are accountable for which intercompany workflows, you may use the Manage Teams and Responsibilities – Intercompany app to define teams and team member functions. You can set up teams and give them tasks for the following two ICMR processes – Variance Adjustment and Reconciliation Close

You can use this app to:

  • Create, edit, copy, and delete teams
  • Assign team members functions
  • Show Hierarchy lets you set up and manage a hierarchy for teams, sub-teams, and super-teams.
Business CatalogSAP_FIN_BC_ICA_ME_CONFIG (Intercompany Matching Settings)
SAP Fiori AppManage Teams and Responsibilities(F2412)

9. Activate Reconciliation Close Process

For the following procedures, you can configure and activate the reconciliation closure process:

  • Management of the state of the reconciliation process at its close
  • Postings about elimination and the elimination method
Technical CatalogSAP_TC_FIN_ICA_BE_APPS (Intercompany Reconciliation: Classic Apps)
SAP Fiori AppActivate Reconciliation Close Process

Important ICMR Transaction Codes

ICAIMGIC Matching and Reconciliation
ICAADTAssign Doc. Templates to Companies
ICAAMUnlock Asynchronous Matching Status
ICAASDefine Additional Method Settings
ICACFDefine Comparison Operators
ICACMMaintain Communication Methods
ICADSMaintain Data Sources
ICADTG/L Posting Doc. Templates for Var.
ICAEAAssign Email Templates
ICAFCDefine Custom Filters
ICAFSDefine SAP Standard Filters
ICAFUFlexible Upload of Matching Items
ICAMLIIntercompany Matching ML Inference
ICAMLMIntercompany Matching ML Monitor
ICAMLTIntercompany Matching ML Training
ICAN1Define Number Range for Matching Doc
ICAN2Define Number Range for Assignments
ICARCMaintain Reason Codes
ICARMRun Matching
ICASDSSwitch Data Source of Matching Meth.
ICASFDefine SQL Functions for Matching
ICATRMTransport Matching Methods
ICAARCActivate Recon. Close Process
ICAEMDefine Elimination Methods
ICATRCTransport Reconciliation Cases
ICA_ELIM_SIMSimulate Elimination

Intelligent ICMR

Intercompany matching and reconciliation (ICMR) is complemented by intelligent intercompany reconciliation, a technology that employs machine learning (ML) to better match intercompany transactions.


Your intercompany reconciliation process, from local financial close to group financial close, is accelerated with ICMR. You can perform a near-real-time matching and reconciliation process on continuosly changing data without using any ETL (Extract, Transform, Load) processes.

It enables business users to maintain a continuous accounting process and high levels of automation. With its integrated communication tools, including as workflows, notes, email notifications, and reminders, it eliminates the delays associated with a traditional reconciliation process while introducing responsibility, transparency, and visibility.


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