Groups with five legal entities often close in Excel even after “going live” on a respected ERP. The software can post; it cannot invent a shared intercompany policy. Modern ERP must make the standard path easier than the spreadsheet path—or finance will keep both forever.
Capabilities that are no longer optional
- Automated intercompany matching on trading-partner dimensions
- Multiple books (local GAAP, group IFRS/US GAAP) without dual entry theater
- Currency translation with identifiable CTA and locked rates
- Ownership % changes and simple NCI without a separate CPM only for arithmetic
- Close task management with evidence attachments
Design choices that decide close pain
| Choice | Cleaner close | Painful close |
|---|---|---|
| Intercompany items | Mirror SKUs / IC revenue accounts | Miscellaneous “IC clearing” dump |
| Transfer pricing | System-calculated IC markup | Manual journals after inventory moves |
| Chart of accounts | Group COA + local extensions | Every entity a unique snowflake |
| Calendar | Shared close checklist | Each controller a private ritual |
ERP vs CPM: stop the holy war
Transactional IC elimination belongs as close to the ERP as possible. Complex consolidations, allocations, and board reporting may still live in a CPM tool. The failure mode is exporting trial balances to Excel, then to CPM, then back to slides—with no one able to drill to a purchase order.
Implementation sequence
- Harmonize partner codes and IC accounts before history load.
- Turn on matching in a pilot corridor (two entities, one flow).
- Only then enable automated eliminations in group books.
- Publish a written IC dispute SLA—software cannot replace that conversation.
Conclusion
Multi-entity consolidation in a modern ERP is a combination of product features and uncompromising process design. Demand trading-partner discipline, multi-book accounting, and drill-back. Use CPM for analysis, not as a dumpster for unresolved intercompany. That is how group close becomes a calendar event instead of a heroic all-nighter.