Netting is a management module for inter-company debts from Sage XRT Treasury, designed for multinational companies which want total control over their subsidiaries' transactions and to reduce the global number and costs of these transactions.
This solution is totally independent of the banks, which ensures maximum flexibility to Financial Directions.
Using amounts to pay and to collect to calculate net positions for the various entities enables multinational companies to minimize the number of transactions to only one (payment or disbursement) by participant.
Multinational companies have many production and sales divisions, they therefore generate many inter-company invoices. Netting enables a substantial reduction in payment numbers through the invoices centralization, and the subsequent calculation of the net result among participants.
Examples of Invoicing Process within multinational companies
Info
The arrows represent payments between subsidiaries, whereas numbers correspond to the amount to pay.
- Without a netting solution
- With a bilateral netting solution
- With a multilateral netting solution
By creating a Netting center, multinational companies decrease their numbers of internal transactions and therefore their transfer and exchange costs, profit from better banking conditions, increase productivity and reduce exchange risks.
The multilateral solution Netting generates only three transactions compared with twelve and six without it.
