If your subsidiaries engage in intercompany business and you are not netting your AP/AR, you are throwing your money away.
Not only do bank fees and FX deals from multiple accounts cost you over and over and over again, but the process of reconciling millions or billions of dollars worth of transactions eats away at available man-hours. By confirming all invoices before they get settled in the netting center, tm5 structures your intercompany business, combining multiple transactions into a single balance per subsidiary. This leads to improved efficiency in hedging and simplifies your cash management. There will be fewer FX swaps, less FX risk, and a drastic reduction in workload for all participating parties.
This makes multilateral netting one of the easiest ways to become a corporate hero.