See further with intercompany netting

Coprocess Intercompany Netting software can be implemented in weeks, can seamlessly interface to different systems as your needs change and is a fraction of the overall cost of a TMS.

There are many reasons why selecting a specialist system like Coprocess has greater benefits than using the Netting module of a Treasury Management System (TMS).

See further with intercompany netting

The standard use of a multilateral netting solution is to net intercompany invoices around a global organization, reduce payment volume, centralize foreign exchange and put a procedure in place that every subsidiary adheres to when settling Intercompany Invoices.

However there are several uses of a Netting Solution that go beyond this and allow for a centralized Treasury Center to gain further benefits from using our Netting solution

Accounting Challenges

The primary role of Intercompany Accounting (ICA) is to make sure legal entities don’t show a profit or loss on the parent company’s balance sheet, what is called ‘elimination’. This is an important process that can impact statutory reporting and cause business impact. So getting the process right is key. Yet, according to a survey by Deloitte, 92% of companies, at the time of the survey, have further room for improvement in their intercompany accounting.

Consolidating Intercompany payments into just one amount can bring significant benefits. Consider how many in-house transactions are created from hundreds or thousands of invoices every week, month or year. Then think about how much time and effort is involved in recording those payments accurately, handling invoices, compiling reports. The list goes on. At a large multinational corporation, think about the possible time saved by combining numerous internal transactions into a single payment.

We’re frequently asked “I have an In House Bank (IHB), why should I also use an Intercompany Netting solution?” – our response is you can get some of the same benefits from using an IHB to settle Intercompany Invoice Balances but to really maximize the FX savings, transactional savings and process improvements you should be doing both. The following are some discussion points to help identify the key differences between them.

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