Hybrid Integration for Manufacturing Finance: RTR Controls, Intercompany Eliminations, and Auditability Across Multi-ERP Estates

Abstract

Manufacturing groups often operate heterogeneous ERP landscapes after mergers, carve-outs, and regional deployments, fragmenting Record-to-Report (R2R) and weakening auditability. In this paper, it is suggested a hybrid blueprint of integration combining subledger-to-consolidation flows between SAP, Oracle and domestic ERPs without loss of plant autonomy. The architecture brings together API-based connectivity of control-critical events and scheduled batch of high-volume ledgers controlled by an iPaaS/middleware layer and canonical finance data model. Elimination between intercompany is formalized on 3 levels: (i) at the transaction level (composite key: legal entity, counterparty PO/shipment, item/quantity, Incoterms, ship-to, timestamps); (ii) at the end of period netting (transfer-price normalization and FX remeasurement); and (iii) top-side adjustments which are policy-driven and within materiality limits. Evidence of embedded control provides evidence of immutable event IDs, SoD checks, and attestation of approvals, and transformation recipes that are versioned, provides end-to-end lineage and click-through traceability over consolidation balances to subledgers of origin. A reference operating model reflects quantifiable results: the month-end close process is faster through parallelized reconciliations, the number of manual journals is reduced by enriching the processes through rules and exception workflows, the accuracy of elimination is better, and compliance posture is enhanced by continuous control monitoring and tamper-evident logs. The blueprint is production-oriented for July 2022-era estates and designed for phased rollout, enabling brownfield modernization while laying foundations for AI-assisted anomaly detection, predictive close analytics, and optional ledger anchoring for enhanced audit assurance.