SAP is the largest vendor of Enterprise Resource Planning (ERP) Software in the world and is a German Multinational Company that specializes in developing Real-Time Business Processing Solutions for enterprise-wide application through SAP ERP (Enterprise Resource Planning), SAP SCM (Supply Chain Management), SAP CRM (Customer Relationship Management), and SAP HCM (Human Capital Management). SAP has over 170,000 employees worldwide, and operates in 180 countries with an emphasis on providing Enterprise Application Solutions to its clients.
The company was founded in 1972 in Weinheim, Germany under the name "System Analyse und Programm Entwicklung" (SAP) by five former IBM engineers who envisioned a future where businesses would be able to process information in real-time.
In 1973, SAP launched its first commercially available product, the RF Financial Accounting System, which provided an integrated set of financial accounting modules that allowed users to perform general ledger accounts posting, account journal entries, account reporting, and other financial functions.
In 1978, SAP relocated its headquarters to Walldorf, Germany and changed its corporate name to SAP GmbH (Gesellschaft mit beschränkter Haftung).
In 1980, SAP began to develop the R/2 Mainframe ERP System for international markets.
In 1988, SAP AG went public, marking a major milestone in the company's continued growth and expansion.
In 1992, SAP released version R/3 of its ERP (Enterprise Resource Planning) system, which would establish a new ERP Standard for the industry.
In 2010, SAP introduced its in-memory computing platform SAP HANA (High-Performance Analytics Appliance), which enables rapid data analysis and decision-making capabilities for business applications.
SAP HANA Cloud multi-tenant architecture
Embedded SAP AI for intelligent document processing, predictive reconciliation, and automated matching suggestions
Based on SAP product documentation and enterprise architecture standards
| Service | Cost | Details | Source |
|---|---|---|---|
| SAP Intercompany Governance by BlackLine - Origination | Custom quote | Priced by Objects each year. One production tenant included. Contract duration 3-60 months with auto-renewal. Yearly prices pro-rated monthly for contracts under one year. | SAP official pricing page |
| SAP Intercompany Governance by BlackLine - Account Settlement | Custom quote | Priced by Objects each year. One production tenant included. Contract duration 3-60 months with auto-renewal. Yearly prices pro-rated monthly for contracts under one year. | SAP official pricing page |
| SAP Analytics Cloud - Transfer Pricing Prepackaged Solution | Custom quote | Pre-packaged solution for intercompany transfer pricing including driver-based planning, IC revenue projections, cost of sales calculations, and reporting capabilities. | SimpleFi Solutions |
SAP ICMR is part of S/4HANA Group Reporting which uses flexible matching rules to automatically reconcile intercompany documents. The benefits of this are that it can process in real time without the use of ETL (Extract, Transform, Load) processes and reduce the amount of work done during the close of the month.
ICMR is designed completely different than legacy ICR (Intercompany Reconciliation). ICMR allows for real-time reconciliation from the Universal Journal (ACDOCA), and the ability to create flexible rules without having to rely on IT support, and in-app communication. Legacy ICR relied heavily on ETL processes and was a "period-end" focus process. ICMR allows for continuous reconciliation of all intercompany transactions throughout the month.
Yes, ICMR does not require a separate license in S/4HANA Central Finance once it has been implemented. ICMR is able to reconcile replicated documents centrally using the Universal Journal as a single source of truth for the entire organization. This eliminates the issue of varying standards of data across multiple connected systems.
Some of the key features of ICMR include; automated matching of intercompany documents, workflow driven process to resolve discrepancies in intercompany documents, real-time intercompany balance checking, and graphical reporting to display the results. All these features combined are able to speed up the process of reconciling intercompany documents, improve the transparency of the accounting process, and integrate with Group Reporting for the purpose of elimination of intercompany transactions for consolidated financial statements.
Yes, ICMR is capable of performing high-speed matching of intercompany data sets across multiple subsidiaries. ICMR is also able to process transactions at both the detail level and the summary level in real time. Additionally, ICMR allows users to define their own organizational dimensions to increase its scalability.
ICMR is capable of performing automated variance adjustments to postings based on user defined posting templates. ICMR also includes workflows to direct any exceptions found during the reconciliation process to the designated reviewer and approver for validation and approval. Users may also define tolerances for acceptable differences between actual and expected values along with maintaining a full audit trail for all activities performed by the system.
ICMR is accessible in both cloud-based and on-site versions of Group Reporting that exist within S/4HANA. The version you run doesn't matter; it functions identically.
ICMR can be connected to external systems utilizing either an Excel template upload or an OData API. It will connect to your SAP Central Finance, Group Reporting and all of the S/4HANA module systems. The real-time data is accessed from the Universal Journal to ensure accuracy.
SAP Intercompany Matching and Reconciliation (ICMR), which resides within S/4HANA Group Reporting, is a high end automated solution for intercompany processes, replacing legacy ETL solutions with real-time Universal Journal access. The solution is best suited for large multinational organizations, however there is an infrastructure commitment to S/4HANA required.
SAP ICMR is well-suited for SAP-centric organizations that desire scalable, real-time intercompany reconciliation as part of their S/4HANA transformation.
SAP ICMR offers real-time intercompany reconciliation functionality within S/4HANA Group Reporting utilizing flexible rule sets, Fiori workflows and Universal Journal integration. ICMR also has an option to utilize a license-free version in Central Finance to automate intercompany reconciliations and reduce month-end closing efforts. ICMR is designed for high scalability for multinational enterprise users.
Good - detailed technical information from SAP partners, documentation, and blogs. Specific pricing/SLA details require SAP sales contact as enterprise software.
The ICMR system utilizes intuitive Fiori apps for managing reconciliations, for displaying graphical reports and providing an overview of the status. The system also includes real-time dashboards that display both detailed line item and aggregated information without the need for custom development.
The direct link between the systems allows for automatic entry eliminations when creating consolidated financial statements. The results from the reconciliation process are able to be fed directly into the company's closing process.
SAP has developed pre-configured best practices for activating the ICMR system, which include default matching rules and workflow templates. This helps to reduce the amount of time needed to implement the ICMR system for standard use cases.
There are many implementation partners such as Gambit and element61 that have experience with ICMR. Additionally, SAP has a global partner network that can assist with deploying the ICMR system globally.
The ICMR system is supported by SAP in S/4HANA Cloud, on premise, or in a hybrid model through SAP Central Finance. Since the ICMR system processes in real-time it does not require ETL (Extract, Transform Load) processes across different models.
Auto-Matches Intercompany Document Items - Line by Line - Directly from SAP Universal Journal Table ACDOCA.
Flexible Match Aggregation Levels Across Multiple Company Codes and Dimensions of Organization.
Reconciles in Real-Time With Snapshot Capability Handles Timing Differences Between Company Codes.
Smart Engine Learning From Past Patterns Makes Suggested And Exceptional Matches.
Customizable Matching Methods for Users to Configure Exact-Match, Suggested-Match, and Exception Patterns.
Matching Engine Provides Partial and Suggested Matches With Configurable Tolerance Thresholds.
Natively Support Multicurrency Through Universal Journal and Real-Time Reconciliation Across Entities.
Analyzes Results Dynamically Continuously Improves and Suggest New Rules For Reconciliation.
Natively Integrates with SAP S/4HANA Universal Journal (ACDOCA), provides real time General Ledger Data Without ETL Processes.
Solution was designed for Native SAP S/4HANA Environments, No Documentation Available for NetSuite Connectors.
Main Focus on SAP ERP Systems, No Native Oracle E-Business Suite Connectivity Documented.
Solution is Native to SAP, No Documentation Available for Workday Financial Integration Capabilities.
Enables Custom Integrations and Extensions Using API Connectivity of SAP Fiori Apps and OData Services.
Allows for Direct Access to Ledgers Eliminating Need for File Imports and Providing Real Time Data Synchronization.
Provides continuous real-time data stream from ACDOCA table allowing for intra month reconciliation monitoring.
Enables reconciliation across multiple company codes and organizational units within one S/4HANA instance.
In App Communication and Workflow Automatically Routes Discrepancies Between Involved Company Codes
The Fiori-based workflows for managing exception resolutions have a clearly defined ownership assignments, as well as the ability to track statuses of these resolutions.
The matching results are categorized based on types of discrepancies that occur including but limited to unmatched, partially matched, and timing discrepancies.
The in-app peer-to-peer communication tool is used to document reasons for resolving an issue so there will be a complete audit trail of the entire process.
The system allows users to perform a complete drill-down from the balance down to a line-item down to the source-document at any point of time throughout all entities.
The matching runs will process all open items at once, and will also allow users to assign multiple items to a single match at one time (bulk assignment).
The structured workflow processes provide a methodical approach to systematically resolve exceptions between subsidiary companies.
Real-time error detection can identify when a matching exception occurs immediately after a transaction has been posted into the system.
The Fiori Reconciliation Status Overview application provides users with real-time visibility to how long it has been since an exception was first identified (aging), as well as what steps have taken place toward resolving the exception.
The display group pairing capability of the system allows users to view intercompany netting views between the lead company (parent) and partner unit (subsidiary) companies.
The flexible reconciliation rules provided within the system enable users to create and implement complex multi-entity netting scenarios.
The integration of the SAP Treasury module with the Reconciliation System provides users with the capability to initiate intercompany cash settlement workflows.
Once a user approves of a reconciliation, the system will automatically post adjusting entries to correct any discrepancies that were previously identified during the reconciliation process.
The configurable matching methods available within the system enable users to automate common intercompany settlement routines.
The Universal Journal provides users with the capability to completely reverse process transactions, which includes automatically updating the reconciliation process accordingly.
The system natively supports processing of multi-currency ledgers, and will reconcile these accounts in real-time, using foreign exchange rates.
Users are able to monitor the reconciliation status in real-time, from when the initial mismatch occurred, until the time that the exception is fully resolved and cleared from the system
