For companies operating around the globe, intercompany transactions between a parent company and its subsidiaries can present enormous challenges. Today’s large global conglomerates typically have multiple subsidiaries each with their own ERPs and often disparate, financial billing and reconciliation systems. This makes it difficult for subsidiaries to reconcile Intercompany transactions in a timely manner, accurately, and transparently to meet the needs of the CFO’s and CEO’s, as well as auditors and regulators, who place more scrutiny on Intercompany transactions as increase in industry consolidation and globalization leads to more complex multinational value chains.
- At the root of these challenges are often inflexible legacy systems or manual spreadsheet-based reconciliation and tracking methods, which lack strong integration with diverse ERP systems, suffer from manual reconciliation of POs and invoices, leading to frequent disputes and unreconciled invoices that impact revenues.
- Blockchain’s decentralized design is an ideal fit for intercompany transactions, virtually eliminating reconciliation lag, facilitating immediate settlement and greatly streamlining the entire process.
- In this webinar you will learn about new approach to intercompany billing and reconciliation that leverages distributed ledger technology (DLT) to provide near real-time processing, validation rules and business controls codified in smart contracts, robust integration with diverse ERP systems, auditable exception/dispute management process, and netting-based settlement, which reduces bank fees.
- You will also hear directly from a major multi-national company, General Electric, about their experience with an Intercompany solution built on Oracle Blockchain Platform.