Only the extremely wealthy can afford to operate without netting

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.


tm5 provides automated invoice matching with a unique dispute workflow for intercompany disagreements. This gives you the best of both payables and receivables-driven processes, highlighting problem invoices and providing 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 are not netted, but their invoices and receipts are still matched, and disputes processed through the agreement workflow.

Automated balance reconciliation

Use tm5’s automated reconciliation process for all balances between your subsidiaries. Our system automatically matches balances, and highlights discrepancies between companies, making reconciliation a structured, efficient process.

Advantages of multilateral netting and invoice reconciliation in tm5

  • Decrease total number of intercompany transactions and limit netting settlement to one currency per company.
  • Drastically reduced workload within the process of intercompany reconciliation.
  • Integrate your intercompany payments and settlements with ERPs and accounting systems.
  • Alleviation of uncertainty in intercompany receivables.
  • Centralizes funding and FX risk to where it can be handled best: central treasury.
  • Gain a  view of your entire intercompany trade flows, and their evolution over time.

Components required for multilateral netting and invoice reconciliation


Reconcile intercompany cash flows

Net intercompany cash flows and settle net, gross or even virtual amounts.


Reconcile intercompany invoices

Investigate and reconcile invoices for transactions between subsidiaries automatically.


Resolve disputes systematically

Structured escalation of disputes within the group with any number of escalation levels.


Reconcile intercompany balances

Reconciliation of the totals of all balance sheets and profit/loss statements for intercompany accounts.