# Prepare intercompany reconciliations and consolidation eliminations

Matches intercompany balances across entities, explains mismatches, and drafts the elimination entries for consolidation.

- Topic: Finance & Accounting
- Framework: Few-Shot
- Level: Standard
- Tags: Finance, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/prepare-intercompany-reconciliations-and-consolidation-eliminations

## Prompt

```text
Help me reconcile intercompany balances and prepare consolidation eliminations.

**Entities and functional currencies:** [LIST]
**Intercompany balances by entity pair:** [PASTE - receivables/payables, loans, interest, management fees, sales/purchases, from each side's books]
**Intercompany agreements:** [e.g. "monthly management fee of 5% of revenue", "loan at 4%"]
**FX rates used:** [month-end and average rates]
**Ownership structure:** [percentages, any non-controlling interests]
**Framework:** [US GAAP / IFRS]

Steps:
1. Match each pair: A's receivable vs. B's payable, A's revenue vs. B's expense.
2. Explain each difference - timing (in transit), FX translation, wrong counterparty coded, missing charge on one side, or a genuine dispute.
3. Propose correcting entries in the entity books first.
4. Draft elimination entries: balances, revenue/expense, intercompany loans and interest, investment in subsidiary vs. equity, and unrealized profit in inventory if goods were sold between entities.

Return:
1. A matching matrix: Entity pair | Account | Side A | Side B | Difference | Cause | Fix.
2. Correcting entries by entity.
3. Elimination entries with explanations.
4. Process fixes to reduce mismatches next month (e.g. cut-off date, single billing schedule).

Mark any assumed FX treatment or ownership-related entry as [CONFIRM WITH CONTROLLER].
```

## What to fill in

- LIST
- e.g. "monthly management fee of 5% of revenue", "loan at 4%"
- month-end and average rates
- percentages, any non-controlling interests
- US GAAP / IFRS
- CONFIRM WITH CONTROLLER

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