Intercompany Transaction Management – Multi-Location Industrial Manufacturer
The Challenge:
A concrete equipment manufacturer with 6 manufacturing and distribution locations processed 450+ monthly intercompany transactions manually, resulting in $180K average intercompany reconciliation differences requiring 40 hours monthly investigation time. Year-end audit adjustments for intercompany eliminations averaged $95K, and transfer pricing documentation was incomplete creating tax compliance risks.
The Solution:
Implemented Dynamics 365 Finance intercompany accounting with automated transaction matching and elimination entries. Power Automate enforced transfer pricing policies and triggered approval workflows for exceptions. Fabric provided centralized intercompany transaction repository with full audit trail. Azure AI flagged reconciliation discrepancies with suggested resolutions. Power BI dashboards tracked intercompany balances, aging, and compliance with transfer pricing policies.
Result:
Intercompany reconciliation differences reduced from $180K to $12K average, investigation time decreased from 40 hours to 6 hours monthly, and year-end audit adjustments for intercompany eliminations reduced to $8K. Transfer pricing compliance improved to 98% reducing tax audit risk, and automated eliminations accelerated consolidated reporting by 3 days.