ZF Group is a German manufacturing company which acquired TRW Automotive in May 2015. The combined company is a global leader in driveline and chassis technology as well as active and passive safety technology. TRW is now the largest division within ZF as the Active and Passive Safety Technology Division. Global workforce of approximately 135,000 with 230 locations in 40 countries, sales of €35.2 billion in 2016
Treasury hubs in Europe (Friedrichshafen, Frankfurt, Amsterdam), North America (Livonia, MI), and Asia Pacific (Shanghai)
Coprocess multilateral netting has been in use at TRW for netting since 2007; hedges in ZF TRW’s program settle through netting. The Vendor Payments module in 2011. The Coprocess multilateral netting system is used to net payments from multiple subsidiaries to multiple vendors to reduce the total number of actual payments being made and centralize any Foreign Exchange required to settle them.
Multilateral Netting is implemented as a payables-based system, with Treasury responsible for entering certain categories of payments:
Royalties, exposure-management transfers, FX settlements, treasury fees, interest
Multilateral Netting is administered in Amsterdam and Frankfurt (intercompany netting, global FX settlements)
Vendor Payments is administered by Livonia (US) treasury, currently for US units only.
The Multilateral Netting settlement calendar is determined 3 years in advance to accommodate hedging program,
and all cash flow hedges for units participating in netting expire on the netting settlement date.
FX banks are set up as third party netting participants in Coprocess and receive the same settlement statements as internal participants.
Maturing hedge reports pulled from the FX system are uploaded to Coprocess monthly.
Reports for intercompany settlement and FX settlement are separately available in Coprocess and are combined from both for upload to treasury management system.
Transactions load at detail level so units can easily reconcile their cash settlement to their netting statement.
Their TMS aggregates payments by currency and bank account for reconciliation to bank transaction.
Final netting rates are entered into FX hedge accounting system on settlement dates so that hedges do not need to be manually settled.
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