ICNETTING - Clearing of Intercompany Payment Flows

Processing Model

tm5 supports the classical models of receivables- and payables-driven netting, as well as the AGREEMENTDRIVENNETTING® established by BELLIN. Due to the complete integration of the various modules, cash flows can be transferred from internal loans or currency transactions directly into payment processing, thus creating increased flexibility in the display of internal corporate financing.

Types of Netting

tm5 makes several types of netting available for the individual companies concerned. This starts with the classical "net" netting, where all receivables and payables are settled to a netting payment. Then there is „gross" netting, where receivables and payables are treated differently, and finally there are mixed approaches as well as the "virtual" netting established by BELLIN. In the last approach, the payments are completely reconciled by tm5 within all companies, but are processed bilaterally, following the internal rules, to comply with legal or political foreign exchange requirements.

Currencies

Currency control is optimized via the settlement currency or via the conversion of foreign currency payments in the netting module. For each individual participant, you decide which currency is to be used for payments on netting day. All options are available, from the conversion of currency payments, e.g. into the company currency, to the processing in transaction currencies without any conversion at all. All options in between can also be used and stored in the core data.

Payments

At the end, the payments which can be directly produced from the netting are executed. The simplest ways to do this are to either transfer the orders directly to the payment factory or to book the settlement amounts to the clearing accounts – just as you wish.