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 Oracle’s AGIS module. So, what does Virtual Trader offer that other solutions don’t?
Use Virtual Trader for Intercompany Transactions
Oracle AGIS allows your business to create and manage intercompany cross charges from a centralized location. It’s a long way from the manual processes that used to be plagued by human error and problems.
But, there was ways to improve AGIS’ functionalities. External software, that isn’t part of the Oracle solution, can provide advanced settlement options and illuminate reconciliation issues before they happen. Virtual Trader is an example.
However, deciding on the right intercompany solution for your business isn’t a quick choice. It’s important you consider each available option and get as much information as possible about the benefits of Virtual Trader.
Breadth of Scope
Oracle AGIS is just one of a number of point solutions that are designated for intercompany requirements. Each solution has its own functionality and method of operation that’s based on the module that it belongs to. These features cover the basic intercompany needs, which is enough for some companies.
Many organizations have everything they need with these solutions and don’t need to worry about the next step. However, evolving organizations, who use modern business practices for manufacturing, distribution and tax planning, need something a little more flexible.
For example, when businesses grow, expand their global reach or absorb subsidiaries, their intercompany requirements dramatically increase. This leads to them needing an automated system. This is where Virtual Trader comes in; it helps organizations to reach the highest growth targets, evolving alongside them.
Virtual Trader has evolved into a comprehensive and consistent solution for automating intercompany. It’s able to automate intercompany transactions that deal with intangible goods and services, like warranties and intellectual property.
A key advantage of Virtual Trader over other solutions is its flexibility and adaptive nature. It’s able to suit a variety of needs as it’s deployed through business rules, rather than being embedded in the software.
Integrations with Remote Applications
Organizations often utilise multiple systems which produce data in different formats. This can raise problems in creating, managing and settling intercompany activities as organizations will need to convert and process data before it can be accepted by their system. And the larger the organization, the more likely this scenario is.
Trying to coordinate between different systems can slow the reconciliation process and lead to miscommunication and error. Because intercompany is the last action before period close, any reconciliation errors and issues often lead to the close being late.
It isn’t just non-Oracle EBS systems that can cause issues. Even if other entities are using Oracle, they might have a slightly different version or be using a conflicting combination of modules. This can create the same problem of data needing to be converted and processed because it’s in a different format.
Virtual Trader has been designed from the outset so that it can accept data from any external system. It can send outbound transactions to remote applications in the required format for direct import by the receiving system.
By seamlessly integrating with remote applications, this eliminates the previously complicated conversion process and ensures intercompany reconciliation is timely and efficient.
Virtual Trader Has Aging Analysis
Oracle AGIS is a fantastic mechanism for raising intercompany transactions. After being created as journals, they’re posted directly into Oracle General Ledger. But, it doesn’t update liabilities so you’re unaware which are still open and how old they are.
As organizations rarely settle payments in full in one sitting, there can be serious tax implications if there’s a lack of aging analysis. You would be unable to keep an accurate track of how old liabilities are.
Virtual Trader has a dedicated Intercompany Subledger that keeps track of intercompany receivable and payable transactions, before sending them to the General Ledger. Settlement activity is automated with journals being created and sent to the appropriate General Ledger.
All of the settled items are closed in the Subledger, which then provides aging analysis on all open items. It provides intercompany balance reporting and Virtual Trader to General Ledger intercompany balance reconciliation.
Managing of Ad Hoc Tasks
Virtual Trader is able to be used for any volume of business activity without experiencing any problem with functionality. When it comes to ad hoc tasks, Virtual Trader:
Can create intercompany invoices.
Has links to tax facilities for the evaluation of transactional tax (such as VAT) and transactions like this aren’t automatically included in any returns that are made.
Automates processes for ‘Trade Through’ intermediaries, where a company may sell to one, before they then sell to another.
Easily Change or Reorganize a Business with Virtual Trader
Businesses are constantly growing, changing and evolving. It’s common for complete restructures to take place when new entities are acquired or assimilated. Sudden changes to the company structure can cause significant problems when it comes to intercompany transactions.
With Virtual Trader, you don’t need to worry about these changes. Rather than being based on business relationships, Virtual Trader deploys business roles to manage trading methods. By dynamically assigning relationships, company changes and setups are completed quickly and easily.
Streamline Your Intercompany Transactions with Virtual Trader
Virtual Trader has been specifically designed to make your life easier. The reconciliation process is automated, reducing human error and mistakes that can lead to serious problems. To find out more about the benefits of Virtual Trader and the other options available to you when searching for intercompany solutions, download our free comparison guide.