Inter Bank reconciliation- Short Note of IT-DAIBB

An accounting process used to compare two sets of records to ensure the figures are in agreement and are accurate. Reconciliation is the key process used to determine whether the money leaving an account matches the amount spent, ensuring the two values are balanced at the end of the recording period.Inter company reconciliation is reconciling among the two branches of the same company located in multiple locations. Where as one branch acts as seller to other branch when some product is moved from Branch A to B branch.

Eg:-when Branch A sends some products to Branch B then in this case. Branch A becomes the seller and Branch B becomes the purchaser.

Hence we require to reconcile between these two branches to make sure the right figures appear on the financial statements to the management.