Intercompany Net & Settle is your running mate for the last mile of the transaction lifecycle.
Streamline complex and fragmented intercompany financial settlement processes. Transform messy settlement procedures into a controlled, efficient, and transparent operation that reduces foreign exchange exposure, strengthens internal controls and maximizes working capital.
Intercompany Net & Settle features
Intercompany Net & Settle seamlessly integrates with any ERP, validating transactions for disputes and holds while managing intercompany lending, cash pooling, and FX exposure. Consolidating intercompany activities in a virtual subledger eliminates system-to-system reconciliation issues and timing discrepancies, offering complete visibility into open balances across the organization.
Drive unsurpassed automation and protect cash with legal entity-based relationships and country-specific multilateral netting rules. Payment instructions are processed in formats like SWIFT/PAIN and ACH, while confirmations are sent back to Treasury Management Systems and ERPs (including IDs) to clear receivables and payables. This ensures smoother, faster processing and enhanced accuracy.
Pool funds or group transactions based on global netting rules while factoring in withholding taxes to lower settlement volumes, reduce fees, and manage tax liabilities. Place disputed invoices on hold to avoid errors and unnecessary credit notes, ensuring smoother operations. Distribute cash effectively to fund operations.
“All transactional information between legal entities in our group is now in one place, which helps to drive accountability in our business through real-time visibility.”
Richard Harris,
Sr. Director, Digital Operations
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Frequently asked questions
Intercompany netting streamlines and consolidates multiple intercompany transactions across different entities within an organization. Instead of making numerous individual payments between entities, netting consolidates the total amounts owed and received, reducing the volume of transactions. This allows businesses to optimize cash flow, minimize currency exchange risks, and lower transaction fees. Companies can improve financial accuracy and efficiency by applying a netting system, facilitating smoother intercompany settlements and better visibility across the organization’s financial landscape.
Intercompany Net & Settle centralizes consolidated intercompany transactions in a virtual sub-ledger that eliminates system-to-system reconciliation and timing issues. The solution speeds up the settlement process by applying rules to validate transactions and providing real-time visibility into open balances across entities. It also ensures that payment instructions and confirmations are processed efficiently, reducing settlement delays and improving overall cash precision.
Intercompany Net & Settle integrates with treasury systems to provide real-time insights into FX exposure, helping you make more informed decisions. It also automates FX processes, ensuring accuracy in currency conversion and settlements. Centralizing transactions and automating netting reduces the need for individual settlements, minimizing bank fees and timing discrepancies across multiple currencies.
Intercompany Net & Settle applies intelligent netting rules, handles netting relationships, and automates settlement instructions for multiple entities. This eliminates manual reconciliations and minimizes timing discrepancies due to human error. It also integrates seamlessly with ERP, banking, and treasury systems. With streamlined workflows and real-time visibility into processes, your teams will produce more accurate settlements and reduce settlement volumes and associated costs.
Yes, Intercompany Net & Settle integrates seamlessly with nearly all ERP and treasury systems. It facilitates seamless data exchange by applying validation rules, resolving disputes, and automating workflows. Through integration with banking systems (SWIFT/PAIN, ACH), the solution handles payment instructions and updates ERP and treasury systems with transaction statuses, ensuring real-time visibility into intercompany balances and reducing manual intervention and errors. Intercompany Net & Settle’s broad compatibility ensures centralized and efficient management of financial operations across your organization.