Intercompany Netting

and Invoice Reconciliation

BELLIN_BTS_07_web

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.

Agreement-driven netting

Do you still come across intercompany invoices that were issued years ago but never settled due to a disagreement? Maybe in currencies which no longer exist? Finally clear these positions thanks to the structured and automated dispute process of tm5, giving you the best of both payables- and receivables-driven processes.

Virtual netting

Not all countries allow netting, but your subsidiaries within them should still be fully integrated into your reconciliation process. With virtual netting, the invoices of 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 the total number of intercompany transactions and limit netting settlement to one currency per company.
  • Drastically reduce the workload within the process of intercompany reconciliation.
  • Integrate your intercompany payments and settlements with ERPs and accounting systems.
  • Alleviate uncertainty in intercompany receivables.
  • Get a report of all intercompany invoices that have been outstanding for a long time.
  • Manage disagreements in connection with outstanding intercompany invoices directly in the system.
  • Centralize 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.
  • Settle your netting results directly on intercompany accounts or on bank accounts through the tm5 payment module.
  • Leverage the agreement-driven netting approach for virtual netting accounts – and settle the payments on bank accounts or on intercompany accounts.

How to achieve optimized intercompany netting

ICDispute

Resolve disputes systematically

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

ICNetting

Reconcile intercompany cash flows

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

ICBalances

Reconcile intercompany balances

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

LMCash

Short-term cash management

Enter and manage information for daily cash forecasts across your group

LMPayment

Settle your netting results on bank accounts

Easy, integrated and secure national and international payment processing

Let’s get in touch!

Interested in learning more about our solutions? That’s great.
Because we’d like to learn more about you. So give us a shout.

By submitting this form, you consent to us using your data to process your request. You can find more detailed information in our privacy policy.