Free up trapped cash in unsettled inter-company AR and AP and reduce FX payment costs.
With our netting solution, which can be purchased stand alone or with our TMS platform, you can unify subsidiaries in a corporate group, allowing them to net and convert all inter-company transactions to a single transaction in their home currency. This net amount is paid to or received from a central netting center, reducing your credit and settlement risks. Netting means lowered costs, streamlined operations, and reduced exposures, all conveniently integrated into your GTreasury platform or any TMS system.
Reduce Payment & FX Costs
Convert each entity’s transactions into a single local currency amount to reduce payment and FX costs and bring structure and discipline to intercompany finances.
Subsidiaries can report what they will pay or would like to receive, and transactions are settled in the netting center, eliminating bilateral payments and netting all transactions into one payment per subsidiary.
Save time and money by making fewer payments and getting full visibility into every procedure and transaction. FX is centralized and netted off, and the remaining FX is aggregated to larger volumes at better rates.
Netting can help with:
- Small, costly FX deals
- High bank fees
- Multiple, differing payment deadlines in a month
- Limited visibility over all payments
- Difficult to hedge
- Reconciliation work, reminders, and administration
- Misaligned intercompany bookings
- Discrepancies with Intercompany Reconciliation (such as wrong P/L or balance sheets)
Benefits of Netting
- Reduces payment costs and payment frequency
- Simplifies payment procedures and transactions
- Provides more visibility and transparency to all parties
- Creates more structure and discipline for intercompany processes
- FX is centralized and netted off: any remaining FX is aggregated to larger volumes at better rates
Features of Netting with GTreasury:
- Easy-to-manage matching and reconciliation
- Vendor payments management
- Flexible currency management
- Flagging at invoice level
- Netting statements
- Bilateral settlements
- Interface builder
- Integrated Report Writer
- Reliable, secure, and dependable
Want to see more ways to run intercompany netting?
Find Efficiency in Simplicity
Subsidiaries are able to report what they will pay or would like to receive and transactions are settled in a central, secure hub (the netting center). This eliminates bilateral payments for most entities, and nets all transactions over the month into one payment per subsidiary in their local currency. Settlement can be either physical to bank, or cashless to IHB, or both.