What aspect of transaction references is crucial for successful matching?

• A. They must be updated quarterly
• B. They should be detailed and explanatory
• C. They need to be unique for each transaction
• D. They should include multiple identifiers

Answer: (C)

The uniqueness of transaction references is fundamental for successful matching in the Intercompany Matching and Reconciliation (ICMR) process. When each transaction has a unique reference, it helps the system to accurately identify and pair transactions between different entities or companies within an organization. This uniqueness prevents confusion and enables precise reconciliation, ensuring that each transaction is accounted for only once in financial statements.

When transaction references are not unique, it can lead to mismatches and discrepancies, as multiple transactions may share the same reference, making it challenging to identify which specific transaction is being referred to during the reconciliation process. Therefore, establishing a standard for unique transaction references is essential for maintaining accuracy and efficiency in the reconciliation workflow.