Articles

As a combined result of company evolution and globalization, changes in regulations, and increased scrutiny from auditors, it’s becoming easier for companies to adopt improper or inadequate intercompany accounting practices. Unfortunately, this can have serious and costly consequences.

Technology can help companies manage their intercompany relationships more efficiently, but updates can easily delay the reconciliation process. Because intercompany is the last action during period close, reconciliation issues can cause the close to be late. This can lead to serious consequences, such as severe penalties from regulators.

It’s becoming increasingly challenging for companies to keep an accurate record of their intercompany transactions. Specialist technologies, such as automation software, can help — but knowing they exist is only half the solution. The other half is knowing which type of software best aligns with your needs and thus is most suitable for your company.

Virtual Trader is a module that sits within Oracle EBS, providing organizations with an automated system that manages intercompany transactions. It isn’t the only solution available to your business, and many companies have all the functionality they need in the Oracle AGIS module. So what does Virtual Trader offer that other solutions don’t?

Finding the right automated solution to manage intercompany transactions is a difficult process. The first step is to identify that your business actually needs a management system. Without one, the reconciliation process is unnecessarily time consuming and laborious.

It’s a serious and expensive problem. When intercompany transactions are neglected or mishandled, it can lead to incorrect reporting and poor decision-making. As you conduct trade with subsidiaries around the world, you need a system that can track and manage each step. Here are four ways to better manage your business’ intercompany transactions on Oracle.

There are solutions designed to make intercompany relationship management and balance settlement operate as smoothly as possible. This leads to a more efficient period close.

Intercompany reconciliation is often a time-consuming task, particularly for evolving companies. Effective intercompany relationship management is key to ensuring the reconciliation process runs as smoothly as possible. Solutions designed for this management can help.

Ensuring a quick and smooth intercompany reconciliation process is often a challenge for most companies. Globalization and new regulations have made intercompany accounting and the subsequent reconciliation of balances even more difficult, but it's not a task that can be ignored as it can increase corporate risk, as emphasized by Deloitte.

Intercompany accounting can be a laborious, time-consuming task, especially for evolving companies. According to a 2016 Deloitte poll of more than 3,800 accounting professionals, disparate systems, intercompany settlement, complex intercompany agreements and transfer pricing compliance were the four biggest challenges for intercompany accounting.