The BlackLine Intercompany Hub is a clearinghouse for intercompany transfer agreements and transactions that eliminates the need for after-the-fact manual intercompany reconciliations, netting, and settlement. The Intercompany Hub centrally interfaces with all of a company’s core ERPs and other systems, creating intercompany transactions and distributing data and automated journal entries from a centralized system. This provides the means for a single process for agreeing to, creating, posting, and settling intercompany transactions. With a single process, companies gain the highest degree of data integrity and regulatory compliance. All of the complexity inherent to intercompany accounting and intercompany reconciliations, including issues over currency exchange rates, transaction amounts, recorded taxes, journal entry creation, and approval workflows, are neatly and automatically managed within the Intercompany Hub.
BlackLine Intercompany Hub Overview
Bringing intercompany data from every entity’s systems into BlackLine’s cloud-based system yields a single, centralized view into all activity around intercompany accounting. From one interface, accounting teams can create, approve, review, and reconcile transactions across entities, accounting groups, currencies, and geographies. The Intercompany Hub provides real-time processing, eliminates differences, generates invoices, and automatically books journal entries to otherwise disconnected systems, removing the need for manual intercompany reconciliations.
The Intercompany Hub manages the intricacies of currency values, transaction amounts, and tax implications with precise, customer defined templates than can be enabled on an entity-to-entity basis. Such templates include specific settings for approval workflows, VAT taxes, multiple currencies, and even intermediate entities for tax optimization. The controls are applied when automatically creating and booking journal entries across all entities’ disparate systems. Each company’s customizable intercompany transaction governance guidelines and controls ensure compliance and control through every step in this historically complex process.
Accounting and finance managers gain real-time intelligence into the business by viewing settlement amounts – who owes whom within an organization – and drilling down into specific initiator-recipient relationships to view the associated transactions. This is possible because intercompany transactions are tracked across the entire process from inception and approval to journal creation and posting. Every step in the process is fully auditable within a centralized hub. This end-to-end coverage allows organizations to avoid discrepancies and exceptions, eliminating the need for manual intercompany reconciliations, while providing full visibility into global currency movements and exposure.
Multinational and multiple-entity organizations often use different, disconnected ERP systems for a variety of reasons. ERP connectivity, from data integration to journal posting, is required to successfully centralize global intercompany accounting. Whether using a single ERP system across all entities or many disparate financial systems around the world, BlackLine software integrates with your existing systems to manage complex end-to-end intercompany accounting all in one place, a single source of truth for global organizations.
Centralized & Streamlined: A Modern Approach to Intercompany Transactions
BlackLine’s vision is to modernize the accounting and finance function to empower greater productivity and detect accounting errors before they blow up into a devastating financial restatement. BlackLine is the leader in Enhanced Finance Controls and Automation (EFCA) software and the only provider that offers a unified cloud platform supporting the entire close-to-disclose process. BlackLine’s platform gives life to a novel concept called Continuous Accounting. This new approach embeds automation, control, and tasks not typically performed until the period-end, directly within day-to-day activities, allowing the rigid accounting calendar to more closely mirror the dynamic nature of the actual business cycles. As a result, companies can constantly monitor for error, fraud, and inefficiency. The Intercompany Hub enables continuous analysis of global intercompany settlement in real time. CFO and Controllers will know who owes whom in the organization at any given moment and be able to monitor trends across global currencies. Continuous Accounting and the Intercompany Hub means leaders are always working with data-driven intelligence.
The BlackLine Intercompany Hub enables customers with multiple companies and entities to automate time consuming intercompany reconciliations, netting, and settlement. Instead of complex, disjointed accounting processes, the Intercompany Hub empowers finance and accounting organizations to work smarter, not harder, while providing unprecedented global visibility. The BlackLine Finance Controls and Automation Platform helps midsize companies and large enterprises by filling in intercompany gaps left by ERP systems and thereby strengthens controls, lowers compliance risks, and introduces greater efficiencies and visibility in every step of the intercompany accounting process.