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Why intercompany reconciliation
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Answer / pravin ninawe
Intercomany reconciliation is reconciling between the two
branches of the same company located in multiple locations.
where as one branch acts as seller to other branch when
some product is moved from Branch A to B branch.
Eg:- when Branch A sends some products to Branch B then in
this case. Branch A becomes the seller and Branch B becomes
the purchaser.
Hence we need to reconcile between these two branches to
ensure the right figures appear on the financial statments
to the management
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