Intercompany Netting
Wasspe's intercompany netting product, offers a robust solution for companies with international subsidiaries. Our exclusive online platform automates and simplifies the settlement of internal invoices, streamlining intercompany financial transactions across multinational organizations. This helps reduce costs, boost efficiency, and optimize your financial operations. Additionally, our tool enhances cash flow management, allows for independent cash flow oversight, and provides valuable visibility into currency exposures.
What is intercompany netting
Intercompany netting is a method employed by global corporations to simplify and offset internal financial transactions. It involves reconciling receivables and payables across various subsidiaries or branches within the same organization, both within the country and abroad. This process helps minimize the number of actual payments, highlights foreign exchange risks, and streamlines cash management. Designed to enhance efficiency, reduce credit and settlement risks, and simplify the settlement process, intercompany netting consolidates all payments from each entity into a single transaction in the local currency. It also offers transparency for implementing currency hedging strategies.
Key advantages and features
  • Streamline and systematize intercompany settlement workflows
  • Minimize the necessity for multiple individual payments
  • Simplify the process of reconciliation
  • Free up internal resources, enhancing both time and cost efficiency
  • Gain a clearer understanding of risks tied to international transactions
  • Facilitate payments to affiliates or external partners
  • Consolidate and compute settlements more effectively
  • Lower transaction fees and foreign exchange conversion expenses
  • Enhance forecasting for cash flow management
  • Uncover previously overlooked currency risk exposures
  • Boost internal operational efficiency
  • Mitigate credit and settlement risks
  • Optimize cash management across the organization
Reports offered
  • Funding Report:
    A consolidated view of trades executed to support the netting cycle, with one trade per currency
  • Participant Reports:
    Detailed transaction data for each entity, useful for reconciliation purposes
  • Settlement Reports:
    A summary of payments owed to or received from the netting center for each participant, presented in their local currency
  • Savings Reports:
    Display savings achieved in each cycle through reductions in wire fees and the elimination of redundant transactions
Why choose Wasspe's solution
Wasspe's netting solution lets you experience the advantages of intercompany netting without the high financial and time investment of traditional netting systems. By providing your intercompany settlement data for each netting cycle (typically monthly), we leverage our proprietary tool to facilitate your monthly netting operations. Our solution includes the full setup and outsourced management of the netting process. Additionally, our all-in-one, self-service platform gives you access to a wide range of complementary netting reports to enhance your experience.
Our solution can help you:
  • Enhance transparency
    Enhance transparency and control by allowing you to input payables and define your netting cycle
    01
  • Streamline and simplify
    Streamline and simplify cash flows and offsets, boosting both visibility and operational efficiency
    02
  • Aggregate and convert
    Aggregate and convert each entity's payments into a single amount in local currency to pay to or receive from the netting center, or utilize a currency hedging strategy to manage potential exposure.
    03
To compare:
Before
If your not using a netting solution you might have:
  • Multiple small foreign exchange transactions between subsidiaries, causing excess FX conversion and transaction costs
  • Lack of visibility due to the absence of centralization
  • Uncertainty around payment dates, complicating cash flow management
  • Mismatched intercompany bookings making reconciliation more difficult
After
Implementing Wasspe's netting solution can help you:
  • Minimize payment expenses by identifying intercompany offsets, which can lower the overall number of transactions
  • Concentrate payments by centralizing and aggregating FX, creating larger transactions with better trade rates
  • Streamline banking relationships to reduce float and associated costs by working with fewer institutions
  • Implement a disciplined, transparent framework for intercompany settlements to enhance organizational efficiency.

Speak with an expert

Put our knowledge, payment automation technology, currency risk management solutions, global reach and commitment to our clients to work for your business.

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