An in-house development team can be an attractive prospect thanks to reduced project costs and greater control of the system being created. When it comes to managing intercompany transaction software, however, in-house teams aren’t the only option available to you. Here’s why you shouldn’t use them for AGIS implementation.
Risks of Managing Oracle Modules In-House
Managing intercompany-transaction software in-house comes with a number of significant challenges. Assigning existing members of your team takes away valuable resources from other important areas of your business.
If you don’t have a current IT team able to manage Oracle modules, you’ll need to find the right specialists. Hiring new staff members is never easy, and the best developers can be expensive.
Assigning the project to a team that doesn’t specialize in intercompany software can lead to an increase in errors. It’s likely that this is the first system of this kind they’ve ever had to deal with, so it’s understandable that there will be mistakes.
These mistakes can cause the implementation of the software to take a long time while your team learns a complicated system. There’ll also be a lengthy testing process while bugs and issues are ironed out.
As the team gets to grips with a new system, it’s more likely that you’ll encounter long-term problems that only manifest themselves once the system has been implemented. This risks the whole reconciliation process.
If you decide to create a bespoke system, you won’t have the benefits of automatic updates. Virtual Trader, on the other hand, sits within Oracle EBS. This means that whenever Oracle needs an update or there are new regulations, the software is automatically updated.
An in-house solution won’t have these updates, so you’ll need to make sure you’re on top of the latest regulations to ensure you’re compliant.
Why Should You Choose Virtual Trader?
Virtual Trader is a scalable system that is ideal for evolving organizations. It’s perfectly suited to the needs of niche enterprises—providing automatic creation, management, and settlement of intercompany activity.
Unlike other solutions, Virtual Trader automates intercompany transactions for intangible goods, such as warranties and intellectual property. The system has evolved over the past 20 years to meet the changing needs of global organizations.
Your business needs to manage working across different territories and global regions—or even just another version of Oracle AGIS. Often, these differing systems won’t work with each other. This slows down the reconciliation process and makes period close unnecessarily complicated.
Virtual Trader has been specifically designed so it’s able to accept and manage data from other systems. By integrating with remote applications, Virtual Trader can smoothly and efficiently move transactions and data between entities.
One of the most common problems organizations have when dealing with other systems is the lack of aging analysis. It’s vital to know whether journals have been settled and how long they’ve been open.
Many of the issues encountered with other solutions are solved by automation when using Virtual Trader. Transfer pricing, for example, allows for easy intercompany transactions between multiple entities no matter how complex the scenario.
Tax requirements are also evaluated automatically because Virtual Trader integrates with external engines. It also matches receivable and payable transactions, posting to both relevant ledgers autonomously.
All of these features significantly reduce the chance of human error, creating a streamlined reconciliation process that allows for easy settlement.
Any software or system your organization uses should be future proof, whether it be your IT hardware, security systems, or sales plans. Refreshing systems every 18 months is an expensive and time consuming process that takes your attention away from more important projects.
Virtual Trader evolves and grows with your business, meeting new challenges and dealing with any issues that may arise as you expand. If there are any sudden changes to the structure of your organization, such as the acquiring of smaller subsidiaries, Virtual Trader is still able to easily deal with everything you need it to.
Find the Perfect Solution to Suit Your Organization
Choosing the right intercompany transaction management software isn’t a decision you should rush. We understand that you’ll want all the facts and information before committing to a solution.
We’ve created a useful comparison guide that allows you to see the advantages and drawbacks of all the possible choices. It allows you to compare Virtual Trader with: Oracle AGIS, an outsourced development solution, and creating a system in-house. Download the guide using the link below.