What is reconciliation procedure in SAP FI-LC - Consolidation?

SAP Term: reconciliation procedure

• Component: FI-LC

• Component Name: Consolidation

• Description: The procedure whereby the intercompany activities between trading partners shown on the individual financial statements are reconciled. The reconciliation procedure enables potential intercompany differences to be recognized within the consolidation process.

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• Key Concepts: 
  A reconciliation procedure is a process used in the FI-LC Consolidation component of SAP to ensure that the data in the consolidation system is accurate and up-to-date. It involves comparing the data in the consolidation system with the data in the source systems, and making any necessary adjustments. 
  
  How to use it: 
  The reconciliation procedure is typically performed on a regular basis, such as monthly or quarterly. The process involves comparing the data in the consolidation system with the data in the source systems, and making any necessary adjustments. This can be done manually or automatically, depending on the complexity of the data. 
  
  Tips & Tricks: 
  When performing a reconciliation procedure, it is important to ensure that all of the data is accurate and up-to-date. This can be done by running reports from both the consolidation system and the source systems to compare the data. Additionally, it is important to ensure that all of the necessary adjustments are made in order to ensure accuracy. 
  
  Related Information: 
  For more information about reconciliation procedures, please refer to SAP's documentation on FI-LC Consolidation. Additionally, there are many online resources available that provide detailed instructions on how to perform a reconciliation procedure.