It's a great example of how TreasuryTechnology can support companies in managing cash flow challenges while providing the flexibility to enhance and optimize treasury operations.

The solution consists of 4 main elements:
🟩 1) TMS-initiated automated sweeping
🟩 2) TMS-initiated Payment-On-Behalf-Of
🟩 3) TMS-initiated non-cash intercompany settlements 
🟩 4) TMS-initiated reporting to multiple ERP systems

In this Episode 3:
The benefits of TMS-Initiated non-cash intercompany settlements

Non-cash intercompany settlement offer several advantages for multinational corporations with complex internal transactions:

🟩 Improved liquidity management
- Real-time internal processing reduces the number of cash movements between subsidiaries.
- Minimizes cash required at subsidiaries to make the internal payments.

🟩 Simplified processing of intercompany transactions
- Standardizes remittance information for more efficient reconciliation.
- Streamlines month-end and year-end closing process.
- No delay in processing.

🟩 Reduce costs
- Eliminates the costs for executing payments, external netting services and FX conversions.

🟩 Simplified Intercompany processing
- Works seamlessly with the TMS In-House bank, similar to the earlier discussed Payments-On-Behalf-Of and Automated Sweeping, allowing treasury teams to manage intercompany funding more effectively.

🟩 Embedded in existing infrastructure
- The TMS intelligently distinguishes internal payments from standard payment files for processing.
- The TMS is able to report back to the ERP systems using the standard bank statements. (Will be discussed in Episode 4).

This article was publised earlier on LinkedIn.