Treasury servicePayments Netting
CategoryCorporate treasury, finance, cash management, treasury management
Case descriptionMultilateral payments netting in a managed solution
"One of the most efficient cash management tools"
Via payments netting you will further add to your external cost savings in a centralized treasury model - and - by letting us manage your complete netting cycle with related set-up and process questions you gain efficiency.
Our combined experience from running an all-embracing corporate treasury as well as management of outsourced netting and treasury activities ensures a professional implementation and netting cycle.
Efficient implementation using the state-of-the-art Coprocess™ system
Manage ongoing activities related to the netting process
All Foreign Exchange activities
Affiliates communicate easily with the netting centre via secure, web-enabled access and with self-service reports
Easy connections to ERP and bank
Gain advantage by letting us set-up and run your netting process, customized to your specific organization and requirements
You can also find more interesting information on Netting benefits reading: Coprocess™
Treasury Management was tasked with setting up and running a payment netting process for an industrial business group active in over 30 countries
First inter-company netting run within two months of initial decision
Immediate benefits from a new managed multilateral netting process
Receivable driven structure gave administrative advantages such as reduced payments ledgers, improved payments discipline and quicker inter-company reporting at month-end
Pay-off on investment was less than three months
After a pre-study on intra-group invoicing and the inter-company payment process, a client sought a managed multilateral netting routine. We assisted in the decision-making process by analysing payment flows and creating a case with pros and cons. We agreed on a timetable for implementation and with a two-month lead time from decision to launch, the group had sufficient time to also analyse specific country restrictions and we could set-up and control, for example, system parameters, netting base, static data, and inform group companies and banks. The savings potential indicated a less than twelve month’s return on investment.
The group is active in some 30 countries but given that the main intra-group invoicing was denominated in EUR, the anticipated cost benefits were held prudent. Besides EUR some 14 other currencies for 51 netting participants were set-up. To add to the efficiencies a receivable driven structure was selected.
Experienced service provider
Utilizing our experience in management of outsourced netting and treasury activities - together with our state-of-the-art netting product Coprocess™, the client received a professional and efficient implementation of the netting platform while running the ongoing activities in relation to the netting process, settlements, reconciliation and follow-up as well as all centralized Foreign Exchange activities.
"Pay-off in less than three months"
Explore how your business group also can save costs and reach efficiencies via netting. We know how to help!
“[Implementing Netting] is a success story. The savings were immediate as well as the acceptance from the subsidiaries”