Andrew Goldie, Managing Director of Coprocess, gave a presentation on the Coprocess Vendor Payments system at our User Group Meeting 2014 in Nyon. You can find the original presentation on our Resource Centre.
Why Centralise Payments?
For international companies worried about the cost, complexity and risk from fraud of continuing to make payments locally in-country then this module of the Coprocess Netting system could be a cost effective solution. The module is built on the netting system platform so it shares the same access rights and methodology, it centralises the payment process, harmonises the coding across the group, improves liquidity and cash forecasting, improves control and reduces fraud risk.
Why Implement Using A Netting System?
It settles net with company business units, it also gives many of the advantages of a netting system while improving communication with suppliers, allows the re-use of foreign exchange within the company and provides a non-cash settlement process if required.
Centralising supplier payments reduces the need to have bank payment systems locally, can be used to reduce the number of bank accounts and bank relationships, reduces costs by bulking up of payments and allows the negotiation of better pricing by centralising payment through one bank.
Are There Further Advantages?
The Coprocess Vendor Payments module can also convert cross border payments into local ACH transactions by debiting an in-country Treasury accounts instead of debiting an off-shore currency account. Centralised vendor payments also allows the use of various payment mechanisms such as SEPA and other in-country payment methods through a single payment portal such as via SWIFT, a SWIFT service bureau or directly from our servers to your bank or banks. Payments can be delivered in XML 20022 format directly to your bank from our servers.
What Does The Workflow Look Like?
The Coprocess Vendor Payments module allows the import of invoice, supplier and supplier banking details, 4 eyes review process, user control and access rights, audit log and payment history, reporting, import and export of rates, generation of payment files in the chosen formats, generation of FX confirmations and third party payment advices with a machine readable attachment for the supplier to reconcile their books. The system also simplifiers and adds value for suppliers, as they will receive a single payment in each currency on behalf of all payers in the group, simplify bank account reconciliation and receive a file to allow the automation of booking on Accounts Receivable.
