Intercompany Revenue
Verify intercompany transactions eliminate cleanly at the group level.
- General ledger alone
How the result is read
Match seller-side IC revenue to whatever the buyer actually debited — cost of sales, inventory, or a fixed asset. A non-zero gap means phantom profit survives consolidation, and three causes look identical in the totals: timing, a genuine break, and translation. IC revenue must also be locatable inside reported revenue, or the group figure is overstated by an amount nobody can find.
The worksheet, on the demo engagement
Intercompany Revenue, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per matched intercompany pair.
- IC revenue
- Counterparty cost
The gap between the dots is what has to be explained before anything is eliminated — a timing difference or a genuine break. The grid says which; the two are never netted.
- IC revenue
- 6,200
- IC cost
- 5,900
- Elimination gap
- 300
Result grid3 rows
| Seller | Buyer | IC Revenue | Counterparty IC Cost | Gap | Gap % |
|---|---|---|---|---|---|
| US-Co | DE-Co | 4,200 | 3,900 | 300 | 7.1% |
| UK-Co | US-Co | 1,100 | 1,100 | 0 | 0% |
| DE-Co | UK-Co | 900 | 900 | 0 | 0% |
In the application
Intercompany Revenue is filed under Revenue & receivables, index letter C. "Run all analyses" runs it with every other analysis the ledger can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under C, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required