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Wire Transfer

Typically used to describe fast or faster payments, usually for cross border payments, either made via SWIFT or some other international payment method see also Bulk Payments and Payment Formats.

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Vendor Payments

Coprocess offers a system for centralising group payments. Business units can access the system and approve payments if needed. The system outputs in a variety of payment formats, see Payment Formats, see Payment Factory.

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Third Party Payments

See 3rd party payments.

Treasury

The department established centrally with a company to manage the company cash.

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SaaS

Software as a Service. Software owned by the system provider on a subscription basis and in a shared environment. This allows a subscription approach to paying for the service without the upfront cost of software or hardware. This can be very cost effective. see also hosting.

Settle Only Matched

A compromise solution for companies that cannot get agreement for or do not need receivable driven netting, the clearning is payable driven (the payer is in control of which invoices will be paid) but the receiver also uploads all open invoies, only those that match are settled in this clearing.

Shared Service Centre

One or more centres that process invoices on behalf of one or several subsidiaries. These can sometimes be outsource or in-sourced.

Single Sign-On

Software and or hardware that allows a company to authenticate user access to the netting system based on their corporate profile. This is very useful, being a good security measure and avoiding additional passwords.

Sub-net Centres

The ability to settle within a defined group of participants before any payments are made to the Netting Centre. This can provide a cashless settlement process and minimise the number of cross border transactions in the same currency.

Subsidiary

A legal entitiy or mena of defining the owner of various transactions in the netting.

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Rates

Rates in the system are quoted as currency pairs. The Base or Transaction currency is quoted vs the Counter or Quote currency, obeying the market convention. Since the netting base currency can be any freely traded currency, Coprocess uses Direct and Indirect to show which way to quote the rate. Direct (D) in the system shows the amount of base currency per quote currency and Indirect (I) shows the amount of quote currency per base currency.

Receivable Driven Netting

The receiver decides which invoices will be requested for payment, depending on volume it is for the payer to pay or mark the transaction as not yet ready for payment. For higher volumes automated matching is used.

See also Payable Driven.

Reconciliation

An accounting term that refers to the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. To have confidence in the numbers in the P&L and Balance Sheet reconciliations must be performed for all Balance Sheet accounts on a regular and ongoing basis. A robust reconciliation process improves the accuracy of the financial reporting function and allows the Finance Department to publish financial reports with confidence. See how Coprocess matching and reconciliation functionality can streamline the intercompany reconciliation process.

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Participant

A subsidiary or legal entity within the multinational company or perhaps a 3rd party supplier, a counterparty bank often used for foreign exchange etc. Typically participants have a unique code, uniform across the company, for each participant. Participants may also be assigned a type, such as Group Company, Bank, 3rd party to help streamline the settlement process and avoid incorrect settlement treatment.

Payable Driven Netting

The payer decides which invoices will be paid.

See also Receivable Driven.

Payment Factory

Software that centralises the payments process for the whole group. This is an important system for any company wanting to reduce the risk of fraud, boost liquidity and improve control, see also Vendor Payments.

Payment Formats

To settle the netting clients output payments in the correct format for SWIFT, various electronic banking packages, local payment mechanisms, etc. ISO2022 XML can be used for a large range of payment formats.

Payment Netting

Netting of payments between two or more counterparties in order to minimise the number of payments paid and received.

Payment to Suspense

Some companies want the amount of any invoice settled, even where it is in dispute. Payment to holding (or suspense) forces settlement to a suspense account until the issues can be resolved see also Make No Payment.

Payments On Behalf Of (POBO)

Because the Netting Centre is making payments centrally for all subsidiaries, they must be in countries that allow payments to made or received by an entity other than the billing entity see Netting Regulations and Intercompany Agreement.

Physical Payment

Some Netting Centres settle all items for cash, some all via In-house Bank. Because of currency restrictions normally there must be a mix of the two.

Profit & Loss

An income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period.

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