The automated offsetting of receivables and payables
Do you produce and sell at different locations in your company? But then hopefully your producing unit as creditor of the receivables no longer sends invoices to your sales unit, right?
Receivables and liabilities in your own company can be offset multilaterally with Trinity TMS via a virtual netting centre. This can be done by the system fully automatically
- on a daily basis as part of intercompany clearing or
- periodically at freely definable intervals as so-called key date netting.
In order to proceed as efficiently as possible, in most cases only one page (usually the invoice of the debtor) is loaded into the system and the liability is mirrored. With Trinity TMS, this works even if the information required for settlement is taken from different ERP systems.
Alternatively, both parties can upload or record receivables and payables and have the system match the data. However, if this results in differences, it slows down the entire process unnecessarily. So we recommend the procedure explained before.
Before each netting run, it is possible to inform the parties concerned about the expected payment flows, whereby this is particularly useful for periodic settlement. If one of the parties then discovers errors, it can comment on this via Dispute Management and lodge an objection. Subsequently, the complaint can be resolved or the corresponding item is excluded from the netting run until the matter is clarified.
Since periodic netting usually works with artificial value dates (value date = day of settlement), the parties involved may be displeased about a payment that is too late or too early. This problem does not arise with immediate netting in the sense of continuous intercompany clearing. It goes without saying that in this case, the possibility to object must be waived.
Whether an actual payment results from the netting run or the transactions are only recorded in internal accounts in Trinity TMS can be set. A further savings effect may arise from the fact that Trinity TMS can assign the turnover resulting from the netting to an account and transmit it to the respective accounting system for automatic posting. If desired, MT940 statements on the movements on the internal netting accounts can also be generated by the TMS.
If suitable exchange rates are available as a basis for the conversion in the TMS, multicurrency netting can also be implemented. Before putting this into practice, however, the price-performance ratio of the process should be carefully checked for economic efficiency.
Well, there are also cases where the internal offsetting of receivables makes no sense or is not legally permissible due to national regulations. But it is still worthwhile to take a closer look at previously undiscovered savings potential.
For this purpose, Trinity has been offering customised "private cloud" installations in German data centres for years in order to relieve the burden on customers' IT resources while at the same time complying with EU data protection directives and the DSGVO.
Trinity TMS is developed and maintained with a lot of know-how in Germany. Enquiries from customers are answered by Trinity itself, so that a personal relationship develops between our employees and users. The German team is supported by a project office in the Netherlands, as many companies based in Eastern and Western Europe are now part of the Trinity clientele.
Trinity has shown continuity for 25 years and will continue to do so in the future. Customised, experienced, faster and personal.
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