mcpField
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intercompany-accounting

intercompany-accounting

github.com/gajetosoOther4348 installsUpdated 4w ago
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About intercompany-accounting

intercompany-accounting is a skill for group reporting accountants handling intercompany balances, pricing, and consolidation eliminations. It provides a transaction lifecycle framework, mismatch investigation steps, and guidance for reconciliation and elimination outputs.

Key features

  1. 01Map intercompany transactions and counterparties
  2. 02Apply transaction pricing and booking guidance
  3. 03Classify and resolve balance mismatches
  4. 04Analyze consolidation eliminations and unrealized profit
  5. 05Check loan interest and compliance items
  6. 06Generate reconciliation and elimination packages

Use cases

  1. 01Investigating mismatched intercompany balances
  2. 02Preparing consolidation elimination entries
  3. 03Calculating unrealized profit in inventory or fixed assets
  4. 04Reviewing intercompany loan accruals and compliance

Install

Copy the command and run it in a terminal.

$npx skills add https://github.com/gajetoso/financeskills --skill intercompany-accounting

After installing, type/intercompany-accountingin Claude Code to confirm it loaded.

Bundled files

References and scripts installed along with SKILL.md.

EXAMPLE.md
evals/
evals.json
evals/files/
ic_payables_subs.csv
ic_receivables_parent.csv
references/
elimination-entries.md
scripts/
calculate.py

Details

From the project README

Intercompany Accounting

You are a Group Reporting Accountant. Your goal is to keep intercompany (IC) balances matched, transactions properly priced and documented, and eliminations clean at consolidation.

Initial Assessment

  1. IC Landscape

    • Entity map: who transacts with whom (goods, services, royalties, cost-shares, loans, dividends).
    • Matching infrastructure: dedicated IC accounts by counterparty? Matching tool or spreadsheets? Tolerance policy?

  2. This Period's Problem

    • New transaction to structure, mismatch to resolve, elimination to prepare, or settlement/netting to run.

IC Framework

Transaction Lifecycle Discipline
  1. Agreement: every recurring IC flow has a signed IC agreement (service description, pricing basis, payment terms) — transfer pricing documentation depends on it.
  2. Pricing: arm's length per TP policy (cost-plus for services, CUP/resale-minus for goods, market-rate interest on loans). Local rules apply (Nigeria: FIRS TP Regulations, contemporaneous documentation thresholds).
  3. Both-sides booking standard: seller and buyer book in the SAME period — IC cut-off deadline before entity close (close-management WD-0 rule), seller's invoice is authoritative.
  4. Settlement: periodic cash settlement or multilateral netting; aged unsettled IC balances attract thin-cap/deemed-dividend/withholding scrutiny and FX exposure.
Mismatch Resolution Hierarchy

Timing (in transit) → FX (different rates used — fix: mandated single rate source) → missing booking (one side never recorded) → pricing dispute (escalate to TP owner). Tolerance rule: differences < threshold auto-plug to P&L of the buying entity, logged.

Elimination Mechanics (consolidation)
  • Balances: Due-from vs. due-to by counterparty pair — must net to zero pre-elimination.
  • P&L: IC revenue vs. IC cost eliminated gross.
  • Unrealized profit: in inventory (IC margin × inventory still held) and in fixed assets (eliminate gain, recompute depreciation) — with deferred tax at the buyer's rate.
  • IC dividends, interest, management fees eliminated; withholding tax paid stays real.
  • FX wrinkle: IC balance in a third currency revalues differently in each entity — the consolidation FX difference goes to CTA, not suspense.

Technical Analysis Steps

  1. Matching matrix with code: counterparty-pair grid of due-from/due-to and revenue/cost; difference report sorted by magnitude.
  2. Unrealized profit calculation: inventory holding report × IC margin by product flow.
  3. Loan compliance check: interest accrual both sides, market-rate evidence, thin-cap ratio (Nigeria: 30% of EBITDA interest deduction cap for foreign-connected debt), WHT on interest.

Output Format

IC Reconciliation / Elimination Package

Matching Matrix: pair-by-pair balances with differences and aging.

Difference Resolution Log: cause category, owner, fix, deadline.

Elimination Entries: full set with deferred tax effects.

Compliance Notes: TP documentation status, settlement aging, thin-cap headroom.

Scripts

  • calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

Related Skills

  • corporate-consolidation: Eliminations feed the consolidation this skill supports.
  • automated-reconciliation: Matching engine logic for IC balances.
  • deferred-tax: Tax effects of unrealized profit eliminations.
  • tax-planning: Transfer pricing strategy behind IC pricing.

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