Combining Intercompany Payments into a Single Amount

ICNetting

Multilateral Netting (ICNETTING) handles the second half of the intercompany netting and reconciliation process, summing reconciled invoices from your intercompany transactions into a single balance paid to or received from the netting center in their chosen currency. This intercompany settlement system drastically reduces your company’s total cash needs, improves groupwide capital utilization and introduces a cyclical pattern to intercompany cash movements.

  • Gain an overview of all internal business.
  • Define internal FX rates and improve hedging.
  • Virtual netting for subsidiaries in nations that don't allow standard netting.
  • Integration with treasury deals from the Interest, Currencies and Commodities module.
  • Support for split payments.
  • Full reports on all transactions to or from in-house or external bank accounts.

AgreementDrivenNetting®

AgreementDrivenNetting® is a self-clearing approach to settling intercompany trade. tm5 provides an automated invoice matching process with a unique dispute workflow for intercompany disagreements. This gives you the best of both payables and receivables-driven processes, and provides central treasury with even greater visibility and accuracy of information.

Virtual Netting

Not all countries allow netting, but your subsidiaries within them should still be fully integrated into your reconciliation process. With virtual netting, these subsidiaries don't get netted, but their invoices and receipts are still matched, and disputes processed through the agreement workflow, resulting in reliable cash flows.