Recording intercompany transactions is an important process for many businesses, but achieving this seamlessly is far from an easy task. It's all too common for intercompany relationships to become unbalanced, with misalignment and lack of automation across legal entities often causing problems.
When such imbalances occur, performing reconciliation at the summary level often won’t identify the root cause. And manual reconciliation is time-consuming and labor intensive. This means that companies often can't see the wood for the trees.
So what is the solution? A package that enables different offices, segments, and business units to easily identify their points of difference while collaborating on rectifying any issues. And a system that makes it possible to close books more quickly.
Virtual Trader is the solution that delivers these vital qualities. It automates intercompany transaction matching, leading to a seamless process that takes the weight off your shoulders. Once Virtual Trader is operable, accounting teams can focus on completing high-value tasks rather than being bogged down with time-consuming reconciliation.
Virtual Trader works at the level of transactions and is designed to operate in multi-ERP system environments. This is particularly valuable because working at the transaction level makes it possible to quickly identify unreconciled items. And operating within a multi-ERP environment offers flexibility to organizations that don't run all their activity within a solitary system. Many ERP solutions assume that this idealized world exists, whereas Virtual Trader recognizes that companies require a solution that suits their real-world needs.
The ICR (intercompany reconciliation) module also rapidly identifies all unreconciled intercompany relationships — and, crucially, the items causing that imbalance within the transactional activity. This reduces the time associated with resolving intercompany activity, helping prevent such transactions from becoming an irritation that repeatedly delays the closure of an accounting period— or, worse still, creates an audit and regulatory sticking point.
Using Virtual Trader to create intercompany transactions also helps ensure they are pre-reconciled. And where that is impossible, the ICR module both transaction-matches and auto-reconciles. In short, Virtual Trader automates and improves your intercompany reconciliation, alleviating the need for manual input and ensuring that the whole process is far more efficient.
Our accounting function is spread across 4 ERP systems. Prior to implementing Virtual Trader, we could only reconcile once a month during consolidation.
Fortune 100 Healthcare Company
Intercompany reconciliation challenges can occur in different areas of the organization and due to a multitude of operational reasons. The Virtual Trader ICR module provides solutions in response to this for transaction-matching and reconciling either purely financial balance sheet entries or underlying trade transactions, such as intercompany shipments and receipts. And with fully configurable business rules, resulting journal entries can easily be automated and interfaced to the corporate ERP system.
We offer a no-cost demonstration of Virtual Trader so you can experience its powerful palette of features!