It is the reconciliation of any two branches of the same company located in two different places. Of them, one company acts as the seller of any product while the other acts as the one taking it when the product is transferred from one company to the other. Therefore if there are two companies say 1 and 2, then either 1 is the seller and 2 is the buyer or consumer or 2 is the seller and 1 is the buyer or consumer. The transaction needs to be in such a manner that it appears balanced on the balanced sheet and both the branches agree to the transaction.
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What is intercompany reconciliation?
